Does anyone here see this as a potential turn-around situation? I've been trying to find out what I can about AGTI... and as someone who's just been "introduced" to the company, it does seem difficult to understand why the price has been driven this low (0.008 x 0.01 as I type this).
I just called their office... spoke to a receptionist who sounded surprisingly cheery for an employee at a company whose market cap is rapidly approaching zip. I asked for the Investor Relations department and was told that the department (a guy named Bob) is on vacation, but that I could reach him at 310-829-4950 on Monday.
Looking at the immense archive of press releases at advancedgaming.com, it looks like mostly good news (orders rolling in) mixed with a management change and finally that ugly little reverse split.
Now... Edgar Online shows a number of 144's (can't look at the details as I'm not an Edgar subscriber)... I'm assuming this (insider selling) is part of what's been killing the stock so far. The April 29, 1998 10QSB shows what appears to be (at first glance.. haven't examined this document in any great detail yet) a break-even quarter vs. a net loss of .02/share in the same qtr of 1997. The doc. refers to a "one-time licensing fee of $1,500,000" which, I assume, makes these earnings look better than they actually are.
Shares.. 150,000,000 authorized.. 120,559,944 oustanding in 1998 and 98,439,431 outstanding in 1997. Sooo.. shares keep being issued to raise cash for the company? Does anyone know the size of the float?
After the 4-1 split, I assume the correct figures would now be 37,500,000 authorized... 30,139,986 outstanding?
My attention was drawn, in particular, to this excerpt from the 10QSB:
Although general and administrative expenses increased over March 31, 1997, these expenses were significantly lower than those for the second, third and fourth quarters of 1997 ($1.7m, $1.4m, and $1.9m, respectively). The full effects of the Company's restructuring will not be recognized until the second and third quarters of this year.
Are we to expect good things from the next 10QSB? Incidentally, that 10QSB was due on the 17th, and a notification was filed that it would be delayed until the 19th (that's today).
I don't own any shares in AGTI at this time, but this price is mighty tempting. I look forward to comments, pro or con, from some of the longer-term holders (all of whom have my deepest sympathies) as to my analysis of this stock.
Thanks,
Michael Bendner |
