To: Timothy Houston
<<Weird day today ... minor crash on light volume. What the heck is going on with this stock? >>
A very low priced stock that is thinly traded such as CCRI was today has price movements that are in the noise really. I don't think this activity in itself means anything other than there isn't much interest in this stock and there's so much interest in high quality large cap growth stocks. e.g. INTC, CSCO.. A large number tech stocks at the moment are no-brainers so why buy a CCRI?.
In short... Stagnant sub $5 stock is very unattractive to investors in dynamic growth phases of the market.
IMHO, Here's a few good things and bad things associated with CCRI currently.
Bad Things:
1) There is no news. No good news, no bad news. To me, no news is bad news.
2) Loss or dismissal of key founding personnel and board members. Sisneros and Cleary of the TSC inc. partnership. I have no idea if Tedesco is still involved with the company. IMO, These three were the good thinkers and capable doers in CCRI.
3) Terrible BOD. No new key and/or notable board members,
4) Overall poor management, large personal cash bonuses for executives despite sub-dismal performance.
5) Whole industry is down. Gaming typically does well in recessions.
Good Things:
1) I'm confident that the Double Eagle and Creekers are high quality buildings with great infrastructure etc. (but I assume that they're just poorly run and in a poor market)
2) DE is Largest Casino in Colorado.
3) Double Eagle is brand new and designed for gaming. Creekers is has undergone extensive upgrades and remodeling. Probably a first rate product.
4) Company would be a very good takeover candidate.
Other Things
1) 10Q comes out Sept. 15th or so for the April quarter. This is a key indicator of activity for the year. In accordance with past projections of earnings, the company reported that year end earning will be $0.50/sh and that third quarter earnings will be at least $0.15/sh. I need to recheck the newswires on these however.
Not to paint a picture of doom and gloom however. If earnings can ramp up within the next two quarters, purchases, acquisitions, and frivolous expenses can be reined in, a good new BOD can be established, and a capable CEO can be hired, I believe CCRI could become a very successful company for the shareholder. Alternatively, a key partnership or buyout would be very attractive.
Disclaimer: These are my opinions only. I highly recommend carefully reading the appropriate SEC filings available through EDGAR or from Disclosure Inc. and formulating your own opinions.
Bob |
