NuOasis Resorts (NUOA) begins trading 01/20/98.
This stock in my opinion is a screaming buy! NuOasis Resorts was formally Nona Morelli's II (NONA).
I've been in Nona since June of '93. I've lived through one reverse split and was also afraid of the mention of another one. During CEO Luke's conference call on 1-6-98, he was asked several times(once by myself)about a reverse split. His reply each time was that he didn't think it would be necessary. He felt that that stock price would rise as the revenues increased from the casino and hotel businesses. I believe Him! If he was going to reverse split the stock, I feel that it would have already happened.
When Nona was in Macau, as I recall, the stock price was above $2.50 with a 40% ownership of the profits of two small casinos. After Cap Gammarth opens in June, NuOasis will have 70% of two larger casinos, plus hotel revenue. NuOasis's eps should be in excess of .20 for fiscal '99. If the company is viewed as an aggressive growth company at this time, it could be high enough to get NASDAQ listed.
Otherwise, the continued growth of Hammamet and Cap Gammarth combined with the addition of a Monastir casino and the acquisition of the two Caribbean properties in calendar '99, NuOasis could be around the .50 eps mark in the year 2000. A NASDAQ listing is assured with five profitable casinos.
Many different people have stated that Luke is a brilliant man. I agree with them. He has created something out of nothing. He has taken the company out of a Corporate taxed State to Non taxing State. He has change the name of the company to shed the stigma of the Morelli's.
Tomorrow when NuOasis Resorts begins trading as NUOA, a new era begins. I think that the '97 10K will show a profit (probably to be filed this week). Also by the end of the month both the 1st and 2nd quarter 10Q's should be filed and hopefully both showing profits .
I believe that Luke has orchestrated the timing of the events, perfectly.
The stage could not be set any better for the stock to appreciate. NuOasis Resorts will be perceived as a new, profitable company with a bright future in the worldwide Leisure and Entertainment industry.
I believe that NuOasis resorts will be a $ 20.00 stock within the next 3 to 4 years. I believe that the smart money will be coming into the stock before the second casino opens. I'll be surprised if the stock isn't over a dollar by the middle of July.
Regards,
Jeff |
