Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Littlefield Corporation (LTFD) -- Ignore unavailable to you. Want to Upgrade?

To: SE who wrote (7358)	2/15/1998 6:41:00 PM
From: SE	Read Replies (4) \| Respond to of 10368

I routinely do a search of SI for BNGO to see what others are talking about. Another thread discussed BNGO and the two discussing it felt that the bingo halls were not the company's future in terms of earnings. They think VGM's are. I want to highlight here the reasons this thinking is faulty. One new bingo hall will produce on average $150,000 in net profit to the company. That translates to $.015 per share in earnings. Now if they start to consolidate a $5,000,000,000 industry there are a lot of bingo halls to be owned. If they add 50 halls this year, that is equivalent to $.75 per share in earnings based on a full year. It does not take a rocket scientist to deduce that bingo halls are the way to go. Kinda like Hersheys. How much do you think they earn per candy bar. I would think the number is very very small. However, they earn big profits cause each of us buy one or two a year. If AB&G can consolidate even a very small percentage of the bingo industry, the profits will be huge and they won't have the negative political ramifications or the connotations that they get by investing in VGM's. Another analogy. How much revenue does one video store produce? Not much, but Blockbuster was one hell of a stock. I agree with Wilson that VGM's were a good way to bring in some revenue and increase the cash flow...but they are not what I am investing in. Further expansion in the VGM market will be good....but it had better not become the focus of this company. I will take a $.015 per share earnings flow each and everytime they add a new hall. It is a clean business and a good business. Not very glamorous, not very high tech, but damn it, it produces good solid revenue. -Scott