June Focus Stock Pick Update
AngelCiti Entertainment (BB: AGCI)
Urgent Information to all members!
Our latest Green Baron Focus Pick AngelCiti Entertainment had a fantastic opening day on Wednesday. AGCI was trading at .96 bid offered at $1.01 when we began emailing our members at about 1:30 EST. The stock moved briskly up to $1.35 per share on heavy volume before finishing the day at $1.17. The stock registered new record volume by trading 866,600 shares, and hit a high that was 35% above our original profile price of $1.00 per share.
Yesterday, AGCI rallied again early to hit $1.26, and then weakened as investors contemplated the effects of a financial commitment to fund an acquisition for Carib Gaming, the largest gaming operator on the fast growing Turks and Caicos Islands. The stock filled in the previous day rally perfectly, testing a low at $1.04 before finishing the day strongly at $1.15 per share. Green Baron members had a perfect second chance to pick up shares near our profile price of $1.00 per share. The last three focus picks have usually taken a few days to test near our profile price before making new highs, but we have been fortunate to have AGCI do it the next trading day.
Perhaps this is a good time to review why we think accumulation of AGCI in the near term is ideal at these levels. First of all, a dividend of Midas Entertainment, a leading player in the vastly popular online poker industry, is soon to be distributed to all AGCI shareholders. Last week on May 25, AGCI announced it will dividend “one share of Midas Entertainment for every seven shares of AngelCiti owned by a shareholder. Midas was spun off from AngelCiti in July 2004 and AngelCiti retains a stake in Midas of over 3.1 million shares. AngelCiti anticipates that it will continue to own over 2.1 million shares in Midas after the dividend payout.” The press release on May 25 also stated that, “THE RECORD DATE WILL BE SET WITHIN THE NEXT FEW WEEKS.”
What does this mean? Well, we take FEW to mean two or three. That would mean a record date ought to be set within the next 3 to 8 trading days!
The Green Baron Report calculates that based on the current price of MDAS at about $8.30 per share that this represents a potential dividend that is worth about what AGCI currently trades for. The balance of 2.1 million shares of MDAS that AGCI owns after the dividend payout is now worth on paper over $16 million (a value equivalent to over $2.00 per share based on the current share structure). Enough said.
The balance of AngelCiti’s business is just as exciting. The purchase of Carib Gaming should compliment its existing online gaming business nicely. It will establish a land based presence with solid revenues and earnings. We think concern that the $3 million in funding from Basic Investors would dilute AGCI stock caused a little tremble today. However, The Green Baron Report has learned that a more detailed description of the financing arrangement should be made shortly, and investors will likely cheer the terms. We also view Basic Investors involvement with AGCI as a major positive. Be on alert for any press releases in the near future. In essence, we welcome these prices in AGCI and believe there is huge upside ahead.
One final note: An exclusive Green Baron webcast interview with AGCI co-founder Mr. Larry Hartman will be released within the next few trading days. This is one you do not want to miss!
Company Contact:
AngelCiti Entertainment, Inc.
Evelyn Fallas – (800)908-9574
Evelyn@angelciti.com
www.angelciti.com
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