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Microcap & Penny Stocks : POKR - Casino Air - Real Gamble? -- Ignore unavailable to you. Want to Upgrade?

To: Rick Hudson who wrote (483)	2/23/1999 11:05:00 PM
From: Gone Fishing	Respond to of 609

The press release you show me was five day old. Avia started to move today. Makes me think something is up.

To: Rick Hudson who wrote (483)	2/24/1999 7:03:00 AM
From: blash	Read Replies (2) \| Respond to of 609

Rick - The 3Q report indicated that Integrated Marketing lost .005/share as a result of a loss incurred from the hurricane. Overall, the Company's Net Operating Income grew by 40% for the first 9 months in '98, but because of the increased shares, the Net Operating Earnings was .03 vs .04 from a year ago. Here is my appraisal. The merger is going forward - it is proceeding at the speed that the SEC wishes for it to take place. Once done, then this Company will take its business and add it to AVIA's which has added 4 Company's to its corral and still holds an interest in KIWI Airlines. The 3Q report projects annualized revenues to exceed "$20 million with net income of at least $1 million." Now I think this is a very conservative projection. Casino Airlink by itself made $.6 million in the first 9 months of '98 and by its last press release it expects to increase its customer base from 85,000 to 150,000 in '99 due to its expanded business plan from more cities in the South to 2 destination ports (Biloxi and Tunica). The increased net revenues from this expansion will be added to whatever profits the 4 additional companies render. From my point of view, $1 million profits has to be a minimum. For the sake of argument let's use the $1 million as the net income for '99. When the 2 Companies merge, the total outstanding sharecount will grow to about 35 million by my calculations if the AVIA shareprice remains about where it is now (the shares will increase if the AVIA price goes down and decrease if it goes higher). If all these assumptions are in the proper neighborhood, then the merged Company will make at least .03/share in '99. Now what is the proper P/E for this Company. I've been told that there are examples where it is >30 for some comparable companies, but let's use 20. This would mean that the Fair Market Value for this investment should be in the neighborhood of .60. Remarkable that it comes close to the agreed upon merger price. I look at this as a long term investment. Casino has definitely had its ups and downs over the past 3 years but this is not a sham OTC BB company. It has a revenue base and profits and is GROWING. Unfortunately, the cost of its expansion is eating into its profits currently, but when the Company pauses awhile and allows for its increased revenues to manifest more profits, then the FMV will be substantially higher, IMHO.