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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (10435)	11/23/1998 10:49:00 AM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Max, all three of your stocks are doing well, but it's shaping up as a fantastic day. DD and I are enjoying BBD.a.TO (and b) We're climbing nicely today. I bought DGN again today. Price breakout needs volume to confirm. Play of the day goes to Ken W...........BAMM!!! Amigo Sergio The following is an Amigo report on CNGR that is going to appear in www.bizfn.com today or tomorrow and a new website and newsletter next week. THE CROWN GROUP - CNGR Nasdaq Small Cap Current price : 5 3/4 Target price : 11 Website: thecrowngroup.com Contact: Crown Group, Inc., Dallas Edward R. McMurphy/Ed Preuss, Jr., 972/717-3423 Investor Relations: R.J. Falkner & Co. rjfalkner.com R. Jerry Falkner, 800/377-9893 DESCRIPTION The Crown Group is a holding company that seeks to enhance shareholder value through the acquisition, development, and operation of small-cap companies with significant growth potential. There are approximately 10 million common shares outstanding. Insiders own about 27% of the outstanding shares, while institutional ownership approximates 2%. The Company has undergone major changes including a change of name and stock symbol in the past year and is virtually unknown to institutional investors at this time, but the underlying value will not be undiscovered for very long. BRIEFING GROWTH RATE - Recent acquisitions indicate that CNGR's growth rate will exceed 30% for the next few years. Book value has increased from .51 on April 1991 to about $7.00 share in November 1998, an increase of almost 1300 %. SHAREHOLDER VALUE - Equity interest in the newly acquired companies was obtained mostly by the use of cash. Very few additional shares were added to fund the acquisitions. The Company's share buyback plan has also helped to preserve value. CONTINUED EXPANSION - The company is currently working on another acquisition that if completed, should have a big impact on the continued growth. CASH FLOW - The profits that the Company will realize from their investment in INKTOMI will allow CNGR to comfortably pursue their acquisition strategy. It will also allow the Company to repurchase additional shares should the shares remain undervalued. EARNINGS - Projections for fiscal 1999 were for earnings of .30 to .35 per share. First quarter earnings were reported at .10 per share, surpassing expectations. Although we would like to see the market give CNGR a higher evaluation due to it's expected growth rate, a modest trailing PE of 25, results in a stock price of $11. TECHNICALS - CNGR has doubled over the last 4-5 weeks. The technicals are red hot right now and at the top in all categories. Short term ..... it is a tough call as to the continued strength in share price, mainly due to the volatility of the INKT investment. New investors are just finding CNGR and the run could continue. In the ThreeAmigo's opinion, CNGR would be fairly valued at $11 with INKT trading in the $130 area. BACKGROUND/SIGNIFICANT DEVELOPMENTS 1983................Co. was founded by current Chairman and CEO and a group of investors as Skylink America, Inc. engaged in various facets of the cable television industry. 1992-1994 ......Co. sold its cable television interests and entered the domestic gaming industry via the acquisition of St. Charles Gaming Company, Inc. a startup riverboat casino Company. 1994-1997..... Crown sold interest in St. Charles Gaming to a partnership which included Casino America, Inc. (Nasdaq: "CSNO") realizing a pretax profit of $37.4 million. 1997................Shareholders approved a change in the Company's name from "Crown Casino Corporation" to "Crown Group, Inc." to reflect that it is no longer involved in domestic gaming activities. 1997-1998...... Co. has reinvested its cash assets into several small-cap companies: 65% interest in Paaco Inc. - car dealerships, 79% interest in Concorde Acceptance Corporation - a sub-prime mortgage lender, 80% equity interest in Precision IBC, Inc. a seller of bulk containers, 49% ownership of Casino Magic an Argentinian casino, 80% interest of Home Stay Lodges I, Ltd.an operator of extended-stay lodging facilities. In addition, from time to time the Company purchases and sells small ownership interests in securities of privately held and publicly traded firms for example 222,222 shares of Inktomi (NASDAQ - INKT) bought for $1 million and now worth about $28 million. 1991-1998..... Book value has increased from .51 on April 1991 to about $7.00 share in November 1998, an increase of almost 1300 %. 1996-1998..... Crown announced that its Board of Directors had authorized an increase in the Company's stock repurchase program from two million shares initially authorized in the stock repurchase program of 1996 to three million shares. CROWN GROUP OWNERSHIP AND INTERESTS PAACO, Inc. Operates eight used car dealerships in the Dallas-Ft. Worth area. The company sells, underwrites and finances used cars and trucks, focusing primarily upon the rapidly growing Hispanic market. Revenues have increased over 700% from 1994 to the present. In the near future, the Company plans to expand to the Houston area, where the Hispanic population is larger than that of the Dallas-Fort Worth area. PRECISION IBC, Inc. Rents and sells reusable intermediate bulk containers to companies in various industries. IBCs are primarily used to store liquids in bulk and have become increasingly popular as a replacement for 55-gallon disposable drums. IBCs are returnable and reusable, require less space than drums, and their use eliminates the disposal costs necessary to comply with federal and state waste disposal regulations. The Company believes that it operates the second largest rental fleet in the U.S. Revenues have increased at better than 40% annualy. Earnings are projected to grow at a 32% rate. CASINO MAGIC NEUQUEN S.A Owns and operates casinos in the cities of Neuquen and San Martin de los Andes in the Province of Neuquen, Argentina. The Company is in an ideal position to expand its casino operation in the near future while realizing a 25% annual return on its investment. CONCORDE ACCEPTANCE CORPORATION Originates, purchases, services and sells subprime mortgage loans which are secured primarily by first or second liens on residential properties. Loan originations have increased in value by over 800% in the last year and it is estimated that growth in the next year will continue at a brisk pace, going from $1 million in loan originations for 1997 to an estimated $150 million for fiscal year 1999. The Co. has a strategic relationship with Banc One Corporation. Under terms of the agreement, Banc One Capital will act as Concorde's agent for the purpose of securing up to $200 million in interim or warehouse lines of credit, $100 million in securitized debt facilities, and $10-$15 million in subordinated debt facilities for Concorde's use in its subprime mortgage lending activities. Banc One Capital also agreed to assist Concorde in establishing ongoing, long-term loan origination business through introductions to mortgage lenders and help in structuring the acquisition of loans from these and other lenders.