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

To: Joe Master who wrote (7370)	2/16/1998 12:39:00 PM
From: jgideon	Read Replies (2) \| Respond to of 10368

Seems bingo halls are not easy growth ... 1) AB&G had 20 bingo halls. 4 closed because they were unprofitable. That's 20% of their halls. If that success ratio carries forward, one should only be looking at 80% of the new halls to succeed. There is no reason to believe that their due diligence has suddenly gotten much better, although one can hope and expect things to get better over time. As an investor, hope is a luxury. 2) Those 5 halls expected by the end of 1997 do not appear on the company overview page, I'd say they either do not exist or are included in the 10-15 possible by end of Q2 98. So here we have an example of time frame not being fulfilled. Perhaps things got sidetracked by warrant call, VGM legislative maneuvers, and musical chairs in the board room (highly likely). Either they were specifically put on hold while the company decided its future direction, or finishing off a bingo hall deal is not as straightforward as it may seem. These two points will make folks consider how quickly AB&G can grab a decent sized and profitable share of the 35,000 hall market. Certainly most of the explosive growth of 97 was fueled by VGMs which are discounted long term until SC settles out. The old thoughts of 50% growth seem unrealistic. Maybe 25%? jg