Bob -
Thanks for the links.
It's exactly as I thought.
"During the three months ended June 30, 1997, the Company continued the process of settling with its creditors that began in March of 1997. the Company has settled with over 300 creditors as of June 30, 1997 resulting in a gain of $1,325,986 and $1,353,478 for the three and six months ended June 30, 1997, respectively."
Income (Loss) Per Share
Before extraordinary gain (0.09)
Extraordinary gain (0.08)
Net loss (0.01)
"Cost of revenues as a percentage of revenues increased from 27% to 34% primarily due to the negative impact of the low revenues of the Las Vegas facility. Country Star Alanta was closed on February 22, 1997 and current plans call for reopening in the fall of 1997,"
The company has a current cash shortage. Current ratio of less than 1. The will need to issue more shares to meet expenses (hopefully not through a reg S offering). They will also probably continue to pay some bills whenever possible in shares.
I don't look for any immediate gains in this stock but expect the price to continue to fluctuate between 3/8 and 9/16. If you can squeek out a profit trading on that slim margin - then one might be able to make a few dollars short term trading this stock. Otherwise, any upside is probably down the road a bit. Next quarter it would be nice if Vegas was profitable - that would boost the stock. I doubt management will really reopen Alanta until Vegas is at least close to profitable considering their current cash flow situation. Actually it would be a good stragety in my opinion. Due to the legal action taken against the company by the landlord of the Alanta restraunt, the company can't afford to say anything but it will re-open in the near future; however, notice that Summer of 97 has now slipped until fall of 97.
In my opinion, management is doing what they can and thus far a good job in dealing with a bad situation. |
