To All:
This one seems to be coming back to life in a big way .. anyone have any other details???
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Copyright (c) 1997 by The Future Superstock. All Rights Reserved.
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New and Permanent Email address for The Future Superstock:
info@futuresuperstock.com
The Future Superstock's August Stock Pick will be released in the next
three to four weeks.
In January of 1997, we reviewed a Company by the name of Gaming Ventures
Corporation, USA. Over the past few months we have received many
inquiries about Gaming Ventures. We would like to take this time to
update you on the developments within the Company since we originally
brought you Gaming Ventures (Ticker: GVCU).
Over the past two months, Gaming Venture Corp., U.S.A. has announced a
few significant developments which have set the stage for the future of
this Company and an expected continuation of the exceptional growth and
earnings this Company has obtained.
Just last week, GVCU announced the formation of a Nevada unit and a new
exciting line of businesses. GVCU announced the formation of Gaming
Venture's West, Inc., a wholly owned subsidiary based in Las Vegas,
Nevada. Gaming Venture's West will be a full service Public Relations
and Advertising Firm and a full service Celebrity Speakers Bureau. This
new unit will be headed by Bruce Merrin, who has 24 years of experience
in the field of entertainment and has, in the past, been listed as one
of the top Celebrity Speaker booking agents. Some well known
personalities that Merrin has represented include Michael Landon and his
daughter Cheryl, Jerry Tarkanian, Rich Little, Gerald Ford and many
other well known personalities and sports stars. Recently, Bruce Merrin
booked a show which included Rich Little, President Gerald Ford, Cheryl
Landon and Bruce Jenner. On all future bookings, Gaming Venture's West
will receive approximately 30% of the speakers fee.
The process goes like this: The organization contacts Gaming Venture's
West and gives their event, date, time and budget for the speakers.
Gaming Venture's responds with a list in that price range. The
organization presents the company their picks, Gaming Venture's contacts
the personalities for availability, the contract is signed and Gaming
Venture's receives 30% of the total fee.
GVCU already has profit margins of over 50% and this new line of
business seems to compliment their existing business in terms of
profits. In addition, the monthly retainer business is expected to cover
all fixed costs meaning much of the speakers business may be 100% profit
to the unit. During the first week of operations, Gaming Venture's West
signed 2 contracts for monthly retainer business and is working on a
third they expect to sign by the end of the month. Management believes
this should be sufficient to cover all the costs associated with the
unit per month, leaving the door open for high profits as the Celebrity
Speakers business heads into their busy period beginning in September of
this year.
GVCU also announced major distribution agreements for their major client
company Casinovations Incorporated and the filing of an SB-2
Registration statement to attempt to get Casinovations publicly traded.
GVCU owns 200,000 shares of Casinovations as well as options to purchase
another 100,000 shares at $1.50. Casinovations, being publicly traded,
has the potential to give GVCU a higher asset base as well as future
earnings and significant exposure.
Players Network, another major client company, recently installed their
programming in at least 5 casinos in Las Vegas. The programming, halfway
through their 90 day trials, has been well received and has been
featured in many local and national print, radio and television
segments. GVCU believes that an audit will be conducted in September and
Players may file to attempt to become publicly traded as soon as
October. GVCU owns 200,000 shares of Players Network as well as options
to purchase another 100,000 shares at prices ranging from $1.50 to
$2.25.
GVCU has continued to experience triple digit growth over last year.
GVCU now has trailing 12 month earnings of $0.23 per share. In Fiscal
1996, they earned $0.15 and this year, even with the startup of
operations in their new unit, they feel they could hit their low end of
estimates which is $0.22, pre tax net income. Next year the Company
estimates that operating earnings with their regular operations and the
new unit will come in as high as $0.32 pre-tax income per share. In the
meantime, they are continuing discussions on acquisitions that will help
them achieve their goal of being listed on NASDAQ in 1998 while not
diluting earnings. Recently, a research report issued on GVCU estimated
that with their growth rate they should be trading at a multiple of 37
instead of the 13 multiple they are currently trading at. With expected
earnings of $0.22 this year, that would give a price of $8.14 and based
on next years estimate that would give a price of $11.84. These
estimates do not take into effect any capital gains that could be added
to net income with Casinovations and Players Network achieving publicly
traded status.
Gaming Venture Corp., USA trades on the NASDAQ BB under the Ticker
symbol GVCU. On Friday, August 8th, GVCU closed at $3.31 per share with
a Bid of $3.31 and an Ask of $3.50 per share.
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For additional information about Gaming Venture Corp., or an investor
relations package, you can call the Company at 1-201-947-4642.
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Mike |
