TOO ALL: AGTI has 1500 units installed, Stuart has 15,000!!! I think we picked the wrong horse...
Stuart Entertainment Acquires Power Bingo
COUNCIL BLUFFS, Iowa, July 7 /PRNewswire/ -- Stuart Entertainment, Inc./dba Bingo King (Nasdaq:STUA - news)
completed the acquisition of substantially all the assets of Power Bingo Corp., the market leader in handheld electronic bingo
units.
``This transaction recognizes the increasingly important role electronic bingo plays in the bingo industry and for Stuart
Entertainment,'' said Al Barber, Stuart's vice chairman and chief executive officer. He pointed out that Stuart also recently
reached an agreement to collaborate with Melange Computer Services Inc., to provide a point-of-sale system for installations
of Power Bingo and Stuart's fixed-based electronic gaming equipment (System 12) in the Native American casinos in which
Melange specializes.
``Electronic bingo represents the next major bingo milestone, and it's certainly a key avenue of growth for our company. The
Power Bingo acquisition and the collaboration with Melange add value to our electronic line. In addition, with Power Bingo we
are adding a known quantity to our business mix. Both players and bingo hall operators have given Power Bingo's products an
enthusiastic reception, and we look forward to building on that market acceptance,'' Barber said.
Stuart has been distributing a handheld unit called Power Bingo King under a marketing agreement initiated last year with
Nevada-based Power Bingo. ``We have seen firsthand how appealing the electronic product is when it is integrated with the
traditional paper-based game,'' noted Tim Stuart, president and chief operating officer. ``Bingo halls across North America
have installed more than 15,000 of our units, with California and Oklahoma proving to be particularly good markets so far. We
see significant near-term opportunities in Florida as well as in Texas and Pennsylvania.''
The price of the acquisition will be paid in cash and is currently expected to be approximately $3.5 million to $4.0 million,
depending on the performance of the units in specified periods following its purchase by Stuart. Power Bingo's principal owner,
David Facciani, will become a consultant to Stuart Entertainment and most of his employees will also be joining Stuart.
``We are excited about the potential for our product and for our role in helping Stuart achieve its growth strategies,'' Facciani
said. ``As the recognized leader in bingo and bingo-related products, Stuart and its extensive distribution system offer
outstanding opportunities for our product to reach wider markets and play a major role in how electronics help shape the future
of our industry. We're delighted to add our expertise in this segment of the bingo business to Stuart's pace-setting activities.''
Electronic components represent an important growth segment for bingo, both to expand the options for current players and to
broaden the game's audience. Players have responded enthusiastically to the added dimension of following up to 200 electronic
game cards alongside their paper game, and bingo hall operators increasingly depend on electronic components both to attract
players and to help them manage their business. Besides the handheld units, Stuart's technologically advanced electronic
product line includes its fixed-base System 12 technology, which also can be programmed for video keno, slots and poker
where regulations permit.
Stuart Entertainment, Inc. is the world's largest manufacturer of bingo paper, pulltab tickets and related gaming equipment and
supplies, with locations in the United States, Canada and Mexico. Its subsidiaries include Bazaar & Novelty, Canada's largest
supplier of bingo paper and related supplies, Video King, a major supplier of electronic gaming systems, located in Littleton,
Colorado and Trade Products a leader in pulltab production, located in Lynnwood, Washington.
AGTI has over 60mil shares outstanding and no end in sight...
Just add it up... If they NET 1MIL (which is over a year away if at all), at a PE of 15 which is about what gaming stocks trade at, this stock would only be worth .24. And that's if they never release any more shares.
If you can make money on the news spikes, than do it, because until these guys start installing units by the 1,000's, this stock will not hold it's rallies. And they don't have the money to install large orders of units even if they get the orders.
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