Scott, Thank you for your effort and time.
I think, it was very clear that you and Rod were frequent contributors
in the past few months. Many early investors benefit a lot from both
of you two. I just wonder, investors in this thread should at least
have basic knowledge and know how to make a decision by themselves.
We all have experiences for gain and loss. To invest in a tiny company, investors have to prepare for a big percent loss, therefore,
on the other hand, they also have a chance to make a big gain. That is
a fun and profit. We gain here and lose there. Nobody can have win-win
situation, include Wall Street gurus. Investors make money because
they have more gain than loss, or gain big and lose small.
I appreciate that Rod initiated this thread and made a lot of
contribution. Hopefully, he can come back. For those who can not offer
a loss, they should invest in blue chip. I remember, in the Summer of
1996, many investors blamed one female sector analyst and newsletter
writer. They had a reason to complain because she declaimed, she was
correct all the time, and asked to follow her and make big money.
In this thread, we share the information and opinion.
For fourth quarter earning, I feel that it is hard to figure out.
We do not know if there is any loss carryover for tax, and we are not
sure how many bingo halls operate and profit. I knew one bingo hall
in Austin was not operating during my resident in that area, but it was in the list for sometimes. It was an empty room, certainly in the loss situation, at least rent payment. I would like to get next annual
report, then we have more information to guess next year's earning.
I still have a little confusion, CC gave us estimate about next year
revenue $20 million, good number, and earning was $.25 to $.35. $.25 to $.35 is not bad at all, considering 25% more shares and 35% tax.
Suppose $.30 is the close figure, divide by 0.65, we get $.4615, and
further times 1.25, we get $.577 based on the shares before WC.
That is good expectation. However, compared to last year's revenue, it
may be not very impressive. I feel hard to figure out this number at
this moment.
For this stock, I feel, it won't such violate as that in the past
few months after WC. CC gave us a more true things, such as 14 bingo
halls. So we can have a more close expectation for the near future.
I was expected, stock price would rebound after WC since fundamentals
are good. Resignation was a big event to depress the price because the
news released everywhere. We all know, the resignation for companies in the bad situation is big good news, but big bad news for companies in the good situation. I guess, SC situation is still in the pending
situation, and is not wild spread news except in the thread. I would appreciate TK Allan's effort and knowledge about SC situation, and
I am not sure what really happened in the inside fight. I do not think, I can guess what was going on then. Probably, it will be uncertain for a quite time. Considering next few weeks, I will guess,
it will be a boring stock for a quite time until we have a better
understanding about the past and future. I am not a trader. I feel,
just as hard as we predict market direction, it is hard to predict
a small stock's direction. Uncertainty and unexpected events easily
affect it, just as we experienced not long ago. It is good to focus
on its fundamentals, which is so good for a young company. Stick to
the fundamentals.
As I concern, the company is better to use cash for expansion. Buying
its stock back is very negative for me. Management owns 40%, that is
high percent to me. We just get this number to attract institutions.
If Wilson and the others can reduce their shares( not in the open market), it will be more attractive to institutions. I always think,
for a small cap stock, 20-20 management and institution hold is good.
Sam |
