My pick for the Golden Acorn is American Bingo and Gaming NASDAQ:BNGO
Last 1 5/8
Change +0 1/16
Bid 1 5/8
Ask 1 3/4
Bid Size 10
Ask Size 5
Day Low 1 1/2
Day High 1 3/4
Previous 1 9/16
Volume 31,500
52 Week Low 1 1/8
52 Week High 3 1/2
EPS -0.34
P/E Ratio N/A
Shares 4,111,000
Market Cap 6,680,375
American Bingo and Gamin will anounce 1996 10 k early next week.
Earnings per share will change from -.34 to between +.20 and +.25.
They lost a pile of money in 1995 due to purchase of 2 Florida operations and 7 Texas operations. The Florida operations proved to be too much and were subsequently sold, the Texas operations were eventually placed in operation after procedings with the Texas Lottery Commission and the courts. But the effect on 1995 operations and income were chilling at best.
1996 was entered with 8 bingo centers in operation, South Carolina, Alabama and Texas, and about $400,000 in cash, ending the year with over 1 million in cash on hand.
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In 1996 growth has been very good. American Bingo increased:
Outlets from 8 to 14
Sales 23% in the first 3 quarters
Cash on hand by 140%
The above earnings per share will change from -.34 to +.20 to +.24.
The company is studying several aquisitions at the present time in Mississippi and Kentucky.
Their business plan is to have over 100 Bingo Centers in operation by the turn of the year 2000. They are well on the way to accomplishing that goal.
Recent history of their Stock Market Price showes the company turn around was noticed by investors in November of last year but IPO restricted shares to the IPO managers/brokers/bankers came off of restriction Dec 14, 1996 and created heavy selling preasure for this micro cap company. The selling pressure ended early last week and the stock has rebounded from its low of Bid: 1 3/8 Ask 1 7/16 to its present 1 5/8 bid 1 3/4 ask nearly 20%. With the expected favorable PE Ration of 7-8 and its continuing 4 quarters of profitability. This stock is a strong candidate both for short term and long term large gains.
An even better long term prospect is its December 14, 1998 $5.00 warrents @ 9/32 bid, 5/16 ask.
Downside seems to be limited by strong support at the 1 1/2 level the upside could be as much as $10 in less than a year for the stock.
upside on the warrents is in the 1200% range.
Check out:
ambingo.com
sec.gov
pennystock.com
Hope this a nut some of you might be looking for |
