All, Drom had a conference call last week, in it, the following were the highlights.
1. Will close on an acquistion (Satellite co.) within 30 days
2. That acq. has 2.5 mill in hard assets.
3. That acq. has projected revs of over 5 mill.
4. Oct invitation to USGA national meeting.
5. Pro Bowlers Assoc. contract being negogitated.
6. Something about a new Inline Hockey League with 17 arenas being
built
7. Something to do with College conferences.
8. Mentioned letters of interest from advertisers.
9. 10 mill in new financing from some leasing firm.
Two days later they re-instated the intellectual property rights as being $7 mill instead of some ridiculous amount like 80 mill plus.
My thoughts are this, the stock cratered after that announcement. I see the asset value that was placed as being totally irrelevant. It was intangible assets anyhow. Even to say that they are worth $7 million is ridiculous. That's like me saying that I painted some piece of art, and I wouldn't sell for less than 1 million. Until someone pays me one and establishs the real value, it is all worthless BS. So whether they claimed 80 mill, 500 mill, or 20 cents, who cares, it all BS anyhow.
I would rather look at the facts. Like that they still have only about 5 million shares outstanding, seemed to have passed the USGA pilot test this summer, why else would they have been invited the meeting in Oct.? That represents 8000 golf courses as a target audience, if they land 10% of those, that's real revenues, and will be the impetus to get the advertisers to come on board. Then you have the PBA, and Lord only knows how many bowling allies. What I find interesting is that they could legally advertise liquour and tobacco products on the kiosks, or at least that is what I have been told. All this is neither here nor there, the real focus is on the fact that there is nothing that should have made the stock drop, therefore I see the base level as being .75 to .87 and look for a pop back to that level as soon as the MM's are ready to take their foot off it's throat. I am using this as an opportunity to average down to that level.
Just my thoughts, will keep you informed.
RB
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