MGAM - Looking good!
I picked some up at 13 on Friday, I expect it'll do quite nicely in the next couple weeks and may gap up a little bit on Monday. This company is in an interesting market, nothing like the profit potential in the gambling industry to get investors excited, especially in truly legit businesses. I mean check this statement from the Friday 4:46 pm press release. has exclusive contracts with over 50 Indian nations to provide linked games that are integrated among multiple halls. Exclusive is a very nice word for a company.
The company is doing 36% of it's market value in revenue!!
I attached the full press release.
Cheers!
Kyle..
Multimedia Games, Inc. Stock Trading Increases
TULSA, Okla.--(BUSINESS WIRE)--Sept. 5, 1997--Multimedia Games, Inc. (NASDAQ:MGAM) When questioned about the high volume of trading in MGAM common stock today, Gordon Graves, chief executive officer, said, ``I believe that the increase in trading volume is due to today's announcement by GameTech International, Inc., who is in a similar business as MGAM, that they have filed for the sale of 3 million shares of common stock.
GameTech's SEC registration anticipates an IPO market value of $121.8 million. At today's price, MGAM has a $54 million market value. For the six months ending April 30, 1997, GameTech's revenue was $5.5 million. For the last reported six months ending June 30, 1997, MGAM's revenue was $19.3 million.
``We continue to see a backlog in orders for new MegaMania machines and expect to install 250 in September. Our MegaMania revenue did increase to a record $600,000 for last week on gross handle of $4 million, but this was an unusual, although positive, departure from the growth in revenue we have been seeing recently and has been attributed to the long Labor Day weekend.
``Our MegaBingo(R) game continues to contribute about $230,000 per week in revenue, but this number reflects gross handle rather than net revenue after prizes (commonly called ''hold``) which is how we report MegaMania revenue. Recently planned expansion of the MegaBingo game, including a TV game show, is expected to increase MegaBingo revenue, but the new game is not planned to start until 1998. The financial impact of this expansion is still uncertain. We did see a 30 percent increase in our net worth by the infusion of $2 million in cash this week from the exercise of 250,000 warrant's.''
Multimedia Games, Inc., through its wholly owned subsidiary MegaBingo, Inc., has exclusive contracts with over 50 Indian nations to provide linked games that are integrated among multiple halls. Multimedia Games, Inc. is the nation's leading provider of linked, high-stakes bingo games, electronic based interactive bingo games, and associated data processing services and products to the Indian gaming industry. |
