Finally, I registered in S.I..
I didn't pay any attention to this stock until the warrant call when
I only have two days to make a decision. Since then, I have frequently
read most of the posts. I was impressed by many people's contributions. This is a good place to discuss many things and ideas
about certain issues. At this very emotional moment, I would like
post a few things here.
1, The conference call is very neutral as I expected. Today I check
the insider trader of S.I., and I find following date:
Jan. one officer sell 58,333 shares @$6.09,
Nov. (one unknown,note n) sell 25,000 shares @$4.00(price was not
correct)
Oct. (one unknown, n note) sell 11,250 shares @$6.76,
Sept. (one unknown, note u) sell 45,000 shares @$7.11
Aug. three(note u, o and f) sell 87,001 shares @$6.06
July one (note f) sell 20,000 shares @$5.00
note f refers to CFO, o to officer.
If the activity of insider's buy and sell is an indicator, the total 246,584 shares sell does tell us that the management team knew what
was going on in the company. I was listening to the conference call
and trying to ask a question, but no response. I think, the main
reason is that the management team can not deliver what it promised.
The promise they made was to activate the warrant call.
2, How many bingo halls?
I was involved in this stock at the end of 1994 by one crook of IA
firm. The crook asked me if I had some amount of money, then the
order came, 10% mark up. IA did not cancel my order even the crook
did not have my permission. The crook left the firm to protect the
firm. We all know those stories about the firm. In the summer of
1996, I was living in Round Rock, TX, which is suburb of Austin.
I visited AB&G and talked to one officer named Henry. In June 6th
of 1996, I went to annual meeting near the company. But I was there
five minutes later. Corky was in charge of the meeting, he told me
that the meeting was over. It surprised me a little bit. But, I
thoght that this was Wilson's family business by nature. Wilson
family control the company. After the meeting, Corky told me that
the p/e is 100 (no business sense at all). The earning was $0.04 that
quarter, p/e should be around 20-25 if every kept same. Then I asked
what about the expansion pace. He told me that company would expand
after it had one million dollar. I only had a chance to tell him that
company was better to use cash to acquire some halls because the
stock price was low. I thought that the company was in the turnaround
situation. It did. If Mr. Wilson learned a lesson from Florida case.
The impression I had was Corky was more like a salesman than a
businessman. After I recall something (public issues and promises),
I feel a little positive about Corky's leave. We don't know what
was really going on in the company, such as resign and other things.
However, Corky's leave certainly is positive for the future. One
is that it changes the nature of family business. The family control
company is the main factor most institution won't be interested in, and family business won't listen to shareholders.
I went to two bingo halls in Austin. These two halls are close to
each other. One was operating, and the other was empty room. But
annual report mentioned both halls. Last Summer, I also found both
in the list. That confused me. What is the official close date?
This CC told us that actually 14 halls were in operation. That was
not bad news, also not good news either. But, I felt, that might be
more true figure.
3, Expansion pace.
I think, expansion should be in the controllable pace, considering
the risk factor. In simple word, expansion should be profitable and
controllable.
After warrant call, I check press issues, the expansion plan was
beyond the control. So often, we see that many companies are out of
business due to uncontrollable expansion. Now, let's go back to
the reasonable expectation.
It is too late to say more here. Maybe, tomorrow I will post another
one.
By the way, This is not to response George's message. It is the way
to say something. Things are not so bad, just more close to the
reality. Company is still good, actually much better than before.
Calm down for a while, it makes money. Things are not so bad.
Sam |
