It's really elementary economics. They plan to buy all the Bingo Halls in Northern Ontario at a cost of 5 million dollars down and carry the mortgage. That is 100 halls at 50,000 dollars apiece down and 1,850,000 a month on the mortgage. Every night 1500 people come to each hall and drop 20 bucks on Bingo, creating revenues of 30,000 a night per hall or 3 million a day overall. That is 90 million per month. Operating costs are about 20,000 per month for the halls which are mostly salaries and utilities. Cards are paid for. The door prizes and winnings constitute 15% of revenue and half ofthe rest is given away, leaving a tax free income of 36,312,500 per month, free and clear except for exorbitant board fees for ten directors secretaries and nurses of about 2 million dollars, a pittance. So on 411,750,000 dollars they earn per year. They will have to struggle along like poh folks. That is 50 dollars profit per share per year and they will generously dividend about 60 cents a shares to the stock holder of record.
Seems like a plan to me. Any flaw in the ointment?
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