TomR -- something may be up!
And I'm not just talking about the stock price! The reason for the price jump is clear -- 2 huge buys went off late Thursday morning. We're talking about 150,000 shares, probably from the same buyer or broker. And, most importantly, this person or these persons weren't worried about price -- it's almost as if they were anxious to get in fast. The stock was at .30, and it looks like the first of these 2 buys went off at .40 and the second at .50. Now, it seems to me that the prudent strategy is usually when you want to get in with 150,000 shares you stagger about 10 buys of 15,000 shares, but this was done quickly with two buys. Why? I can't say for sure, but with the gaming expo in Vegas this week, there's a possible connection -- I think a lot of i-gaming companies have been sitting on news a little bit, and are anxious to have some to deliver at this expo. It's entirely possible. Here are other thoughts I took from the interview of Art Rosenberg accessible through the VTEH site:
(1) VTEH doesn't accept wagers from the U.S. or Canada. Now, if VTEH was a pump and dump company, with no intention of becoming fully reporting, why are they forgoing money from the U.S. and Canada? It's my experience or belief that VTEH isn't taking wagers from the U.S. or Canada because they are extremely eager to be above-board and legitimate: to build a reputation. Otherwise, they'd take money from anywhere. Also, Rosenberg served on the BOD of the IGC (Internet Gaming Council). VTEH's conservative decision to not accept wagers from the U.S. and Canada, and their involvement in the IGC are both major confidence boosters for me -- it shows VTEH's commitment to the industry's legitimacy, and VTEH's desire to be a member of the respectable side of this industry.
(2) Rosenberg was specifically asked if they would report wagering revenues from the site monthly, and he said no: revenues would be reported quarterly. His main reason: reporting companies don't give out monthly numbers hype (or hyped numbers based on "wagers" and calling that "revenue" -- like GOCA!). He specifically says they are moving toward being a reporting company.
(3) VTEH's games on asiacasino are available in English, Chinese and Japanese, and Rosenberg specifically mentions Hong Kong, and says that asiacasino is already operating in the black (profitable). That's certainly good to hear.
(4) On the marketing front -- and this is what sets VTEH apart from other i-casinos IMHO, Rosenberg said they are advertising in the Hong Kong Daily newspaper and in its online medium. They are registering with Asian search engines and they are engaging Asian marketing companies and running online banners on Asian web sites.
(5) Euroecasino.com -- website in development. Will be translated into the major European languages and running by year's end. Also in development is a middle-eastern-targeted i-casino: Algooncasino.com (sp?).
(6) Rosenberg specifically said he expects a major rebound in the stock in the "early fall" -- gambling is somewhat seasonal. So far, he's absolutely correct.
Overall, I was impressed with his level-headed philosophy. These interviews are obvious PR pieces -- the questions are softballs designed to be upbeat. However, Rosenberg didn't go overboard with any predictions or timelines.
And, as you can tell from some of the posts on this board, some people that have been in this stock a long time are extremely cynical. It doesn't puzzle me that they're cynical, because the stock has been crushed over time. However, if they're so darn cynical, I'm really surprised that they're still holding -- and there were very few sellers to be found on Thursday or Friday. That's curious indeed!
I remain convinced in the potential and inevitable growth of this sector, especially as more of the rest of the world gets online. VTEH represents, IMHO, one of the best i-casinos (as opposed to software companies) that is public. I've downloaded Asiacasino Lite software, and I play the games for fun all the time. The site looks great and is quite entertaining. Rosenberg seems very eager to build a solid, reputable company that slowly but surely has i-casinos targeted at the major cultures of the world. That's a sound business plan. They don't seem to be huge hypsters like GOCA and GGNC (and I'm sorry if that offends people invested in those companies, but they are IMHO huge hypesters), so I think we should give VTEH atleast till Thanksgiving to become fully reporting. Valuation in this young industry is always difficult to judge, but I think the potential for $4-$5/share by year's end may be here -- and that's a 10-bagger at these levels. I won't be dissappointed with a little less, and I'd certainly take more! And, of course, for that to happen, VTEH is going to have to do several things: (1) become fully reporting; and (2) report good numbers that show a huge growth rate and upside potential.
The Fiend |
