SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
STUART ENTERTAINMENT, INC.
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
(Title of Class of Securities)
863689105
(CUSPID Number of Class of Securities)
Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
(Name, Address and Telephone Number of Person Authorized)
to Receive Notices and Communications)
Copy to:
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP
120 West 45th Street
New York, New York 10035
(212) 704--0100
November 5, 1997
(Date of Event which Requires Filing of this Statement)
If the tiling person has previously filed a Statement on Schedule 13D, and is
filing this schedule because of Rule 13d-1(b) (3) or (4), check the following
box: ( )
Check the following box if a fee is being paid with this Statement: ( )
(Page 1 of 9 Pages)
<PAGE>
SCHEDULE 13D
- ------------------- -----------------
CUSIP No. 863689105 Page 2 of 9 Pages
- ------------------- -----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefiled Partners Small Cap Value, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688487
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 238,082
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 238,062
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
238,062 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.49%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(Page 2 of 9 Pages)
<PAGE>
SCHEDULE 13D
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CUSIP No. 863689105 Page 3 of 9 Pages
- ------------------- -----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefiled Partners Small Cap Value Offshore
Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 85,000
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 85,000
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
85,000 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.24%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON CO
- --------------------------------------------------------------------------------
(Page 3 of 9 Pages)
<PAGE>
SCHEDULE 13D
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CUSIP No. 863689105 Page 4 of 9 Pages
- ------------------- -----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefiled Partners Small Cap Value, L.P.I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3953291
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 141,438
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 141,438
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
141,438 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.07%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(Page 4 of 9 Pages)
<PAGE>
Item 1. Security and Issuer
This Statement relates to shares of the Common Stock, $0.0l par value per
share (the "Shares"), of Stuart Entertainment, Inc., a Delaware corporation (the
"Issuer"). The principal executive offices of the Issuer are located at 3211.
Nebraska Avenue, Council Bluffs, Iowa 51501.
Item 2. Identity and Background.
(a), (b), (c) and (f). This Statement is being filed by Wynnefield Partners
Small Cap Value, LP. (the "Partnership"), Wynnefield Small Cap Value Offshore
Fund, Ltd. (the "Fund"), and Wynnefield Partners Small Cap Value, LP. I (the
"Partnership-I"). Although the Partnership, the Fund and Partnership-I are each
separate and distinctive entities with different beneficial owners (whether
designated as limited partners or stockholders), for the convenience of
reporting their holdings, in this Statement, they are sometimes referred to
collectively as the "Wynnefield Group".
Wynnefield Capital Management, LLC, a New York limited liability company
("WCW'), is the general partner of the Partnership and the Partnership-I,
private investment companies organized as limited partnerships under the laws of
the State of Delaware. Nelson Obus, Joshua Landes and Robert Melnick are the
managing members of WCM and the principal executive officers of Wynnefield
Capital, Inc., the investment manager of the Fund, a private investment company
organized under the laws of the Cayman Islands. Mr. Obus, Mr. Landes and Mr.
Melnick are citizens of the United States of America.
The business address of Mr. Obus, Mr. Landes, and Mr. Melnick, WCM, and
each of the entities in the Wynnefield Group is One Penn Plaza, Suite 4720, New
York, New York 10119.
(d) and (e). During the last five years, neither Mr. Obus, Mr. Landes, Mr.
Melnick, WCM, nor any of the entities comprising the Wynnefield Group has been
(i) convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
The Wynnefield Group entities purchased their Shares, separately from each
other, for the consideration shown in the following table:
(Page 5 of 9 Pages)
<PAGE>
Name Number of Shares Consideration Paid
- ---- ---------------- ------------------
Partnership 238,062 $674,392.10
Partnership-I 141,438 389,310.40
Fund 85,000 209,187.50
Such Shares were paid for from the separate working capital of each entity
in the Wynnefield Group, each of which maintains a separate investment fund,
consisting of capital contributions from their respective partners and investors
and capital appreciation derived therefrom for the principal purpose of buying
and selling securities (including financial and money market instruments) and
interests in domestic and foreign securities, including, without limitation,
convertible securities, stock index features contracts, options, puts and calls
on stock and warrants.
Item 4. Purposes of Transaction.
Each member of the Wynnefield Group acquired the Shares reported in Item 5
below for investment purposes. If any member of the Wynnefield Group determines
that the ownership of the Issuer's securities represent an attractive investment
opportunity, it reserves the right to buy additional Shares with the
understanding that neither such purchases nor the exercise of its rights as a
stockholder of the Issuer is intended as a "control" device with respect to the
Issuer.
Except as set forth above, no member of the Wynnefield Group has no present
plans or intentions that would result in or relate to any of the transactions
described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
Item 5. Interests in Securities of the Issuer.
(a) As of the close of business on the date hereof, the three entities
referred to as the Wynnefield Group beneficially owned a total of 464,500
Shares, the separate ownership of which is set forth in Item 3 of this
Statement. Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, may be deemed
to have indirect beneficial ownership of the Shares owned by the three entities
referred to as the Wynnefield Group. However, Mr. Obus, Mr. Landes and Mr.
Melnick, as stated below, disclaim any beneficial ownership of such Shares. The
Shares owned by the three entities referred to as the Wynnefield Group represent
approximately 6.8% of the outstanding Shares of the Issuer, based on the
6,828,116 Shares
(Page 6 of 9 Pages)
<PAGE>
reported as outstanding on August 8, 1997 in the Issuer's latest Quarterly
Report on Form 1O-Q.
Pursuant to Rule 13d-4 of the General Rules and Regulations under the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Obus,
Mr. Landes and Mr. Melnick disclaim beneficial ownership of any Shares owned by
the three entities comprising the Wynnefield Group and disclaim membership in
the Wynnefield Group with respect to the Shares for purposes of Sections 13(d)
and 13(g) of the Exchange Act or for any other purpose under any other provision
of the Exchange Act or the rules and regulations promulgated thereunder.
(b) Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as the
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, have the power
to vote or to direct the vote and the power to dispose and to direct the
disposition of the Shares owned by each of the three entities comprising the
Wynnefield Group.
(c) The entities in the Wynnefield Group made their separate purchases of
Shares in the over--the-counter market as follows:
Number Price
Name Date of Shares Per Share
- ---- ---- --------- ---------
Partnership August 19, 1994 1,306 $4.8200
Partnership May 16, 1996 2,286 $5.5000
Partnership May 17, 1996 9,143 $5.5000
Partnership June 6,1996 1,959 $7.0000
Partnership July 12, 1996 2,612 $6.8750
Partnership July 22, 1996 14,368 $6.5625
Partnership August 22, 1996 1,306 $5.5000
Partnership September 3, 1996 653 $5.4375
Partnership October 14, 1996 653 $6.1250
Partnership April 17, 1997 13,062 $3.3125
Partnership July 17, 1997 34,614 $2.7500
Partnership September 8, 1997 48,100 $2.1250
Partnership October 23, 1997 6,000 $2.1875
(Page 7 of 9 Pages)
<PAGE>
Number Price
Name Date of Shares Per Share
- ---- ---- --------- ---------
Partnership October 29, 1997 6,000 $2.1250
Partnership Novemer 5, 1997 96,000 $2.0625
Partnership I August 14, 1994 694 $4.8200
Partnership I May 16, 1996 1,214 $5.5000
Partnership I May 17, 1996 4,857 $5.5000
Partnership I June 6, 1996 1,041 $7.0000
Partnership I July 17, 1996 1,388 $6.8750
Partnership I July 22, 1996 7,632 $6.5625
Partnership I August 22, 1996 694 $5.5000
Partnership I September 3, 1996 347 $5.4375
Partnership I October 14, 1996 347 $6.1250
Partnership I April 17, 1997 6,938 $3.3125
Partnership I July 17, 1997 18,386 $2.7500
Partnership I September 8, 1997 25,900 $2.1250
Partnership I October 23, 1997 4,000 $2.1875
Partnership I October 29, 1997 4,000 $2.1250
Partnership I November 5, 1997 64,000 $2.0625
Fund April 8, 1997 10,000 $3.8750
Fund July 17, 1997 22,000 $2.7500
Fund September 8, 1997 3,000 $2.0625
Fund October 24, 1997 10,000 $2.1250
Fund November 5, 1997 40,000 $2.0625
(Page 8 of 9)
<PAGE>
(d) Each of the entities comprising the Wynnefield Group as owners of the
Shares specified in Item 3 of this Statement has the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares specified in item 3 of this Statement, but only from such Shares
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Neither Mr. Obus, Mr. Landes, Mr. Melnick, WCM, nor any of the entities
comprising the Wynnefield Group has any contracts, arrangements, understandings
or relationships (legal or otherwise) with any person with respect to any
securities of the Issuer, including but not limited to any contracts,
arrangements, understandings or relationships concerning the transfer or voting
of such securities, finder's fees, joint ventures, loan or option arrangements,
puts or calls, guarantees of profits, division of profits or losses, or the
giving or withholding of proxies.
Item 7. Material to be filed as Exhibits.
Not applicable.
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information set forth in this Statement is true,
complete and correct.
Dated: November 11, 1997
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I
By: Wynnefield Capital Management, LLC,
General Partner
By: S/Nelson Obus
--------------------------------------------
Nelson Obus, Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.
S/ Nelson Obus
--------------------------------------------
Nelson Obus, President
(Page 9 of 9 Pages)
