Equity Securities Reiterates Strong Buy on American Wagering
PR Newswire - June 24, 1999 08:44
MINNEAPOLIS, June 24 /PRNewswire/ -- The following is being issued by Equity Securities Investments, Inc., a member of the National Association of Securities Dealers, CRD number 42941:
Equity Securities Investments, Inc. today reiterated their Strong Buy recommendation on American Wagering, Inc. (Nasdaq: BETM) following the release of the Company's record 1st quarter results.
American Wagering, Inc. reported 1st quarter earnings per share of .03, meeting Equity's estimates. However, the EPS results were after start up expenses relating to the launch of their Internet Sports Betting operations and Keno game start up. Not including start up expenses, the Company would have reported EPS for the 1st quarter of .05 per share.
The handle (amount wagered at Company sports books) increased to $22,793,000, up 13.1% from last year, while Win Percentage rose to 7.6% as compared with 6.2% in the prior year. The consistent increase in handle which the Company has been able to obtain in the past few quarters is indicative of the strength in the Company's core operations, Leroy's Horse and Sports Place. The increase in handle has been the driving force behind the improved results at the company. In addition the investment in research and development has begun to show results with the release of American Wagering's Secure Telephone Operating Platform (STOP) product on June 23, 1999.
Equity Securities Investments, Inc. continues to believe that American Wagering, Inc. has begun to focus on improving their bottom line while continuing to invest in the future through new technology to continue to be the dominant force in the domestic sports betting market. Their entry into the licensed and fully regulated Internet sports betting market along with their sports betting location at Bruce Stadium is their first entry into the international sports betting market which is many multiples of the size of the United States domestic market. This is the Company's first step to expand their sports betting operations into this large market while continuing to expand their domestic market through new sports betting locations and new, innovative products for sports and race books in casinos. Equity Securities Investments, Inc. reiterates their Strong Buy on American Wagering, Inc. with a price target of $15 to $17.
SOURCE Equity Securities Investments, Inc.
/CONTACT: Laurence Zipkin of Equity Securities Investments, Inc.,
800-549-3501/
(BETM) |
