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Non-Tech : Lake City Gaming: LCG-V -- Ignore unavailable to you. Want to Upgrade?

To: K. Anders who wrote (46)	12/8/1998 6:32:00 PM
From: Jerrold Annett	Respond to of 124

I thought the Report by Goepel really Sucked!!!!! It was overly conservative with it's projections....$0.31 per share earnings for fiscal 1998????? come on......Q1-1999 had $0.082 per share earnings and with the coming expansions in Vernon and Kelowna.....there should be quarter by quarter increases in revenues. But this is a minor point. The major point which Goepel totally missed was the 3% facility assistance which they only had 1 line about. They breezed by mentioning that for fiscal 2000 this assistance will be 3% of 115 Million which is 3.45 Million or $0.30 per share. At his chosen 9 P.E ratio, which is another issue, this tags another $2.70 per share to the $5.00 recommendation = $7.70. We have to include the facility assistance. The money is tax-free and must be invested by LCG to generate more revenues. It is a win-win situation for the government and LCG. This gives LCG such leverage. How many companies would dream of a situation that LCG is in? As for the 9 P.E. ratio....Get Real! The author figured that since LCG was in a small market that it only deserved a 9 versus the Gaming Average of 15. None of the other Gaming companies within the average have a monopoly and this 3% facility assistance. With such leverage power plus a virgin gaming market in B.C. plus great ties with the BC Lottery Corp....LCG is a MONEY MACHINE. Due to the steep growth projections and the "Surprise" factor of possible acquisitions, this company's PE ratio should be 18. So using my numbers the stock's target price is $10.00 without the facilty assistance calculation and $5.40 more including this calculation. Range ($10 to $15 over the next 12-18 months)

To: K. Anders who wrote (46)	12/8/1998 6:37:00 PM
From: cash money	Respond to of 124

I have been watching this stock for sometime now and it is starting to look very interesting. Can somebody please tell what the facilities assistance is? I see that they last quarter they received over .04 cents a share, how do they come up with that number and will they continue to receive that? Overall this stock is trading at only about 7 times earnings and has so much upside potential it's incredible. It's hard to go wrong when you have the government behind you. Give this company a year or two and we'll all make huge returns. Best of Luck Cash Money.