Ihub, Lousytrades, NewDayto fart, Risenbutgoback to death
You guys need a new profession. You post on here about 3 and 4 and you let 1,000 shares knock the stock down 8%. What school did you go to for manipulating stocks?
Good thing Clarence is used to paying for things and losing on it.
$EGT: 4$ Welcome. Significantly Undervalued Play.
Social Gaming Platform is a huge opportunity for $EGT.
Sentiment: Strong Buy
If you are going to fantasize, then fantasize about something REALLY magical!
The reality is still that EGT will continue to trade in the 1.60 - 2.40 range on low volume as it has been trading for quite some time.
THAT WILL NOT CHANGE UNTIL EGT DELIVERS *RESULTS* that would suggest otherwise, but anyone that can see a 1-year chart can see that for themselves.
On May 11, 2016, we entered into an Asset Purchase Agreement pursuant to which we sold substantially all of our assets dedicated to the design, manufacture and distribution of chips, plaques and layouts for gaming tables to Gaming Partners International Corporation ("GPI"). The transaction under the Agreement closed on May 11, 2016.
Under the terms of the Agreement, we sold to GPI certain assets of our wholly-owned subsidiary, Dolphin Products Limited ("Dolphin"), including fixed assets, raw materials and inventory and intellectual property for cash consideration of approximately $5.9 million. The consideration includes a purchase price of approximately $5.4 million and $530,000 for restrictive covenants related to a non-compete arrangement given by us, Dolphin and Mr. Clarence Chung. The purchase price will be paid out in installments over a 24-month period after closing, with approximately $3.2 million paid at closing and approximately $1.1 million to be paid on each of the first two anniversaries of the closing. Payment related to the restrictive covenants was paid after closing. GPI also paid to us an amount equal to four months' rental for the Dolphin factory subject to a cap of $260,000 after closing and will pay a fixed sum of $520,000 for costs related to the termination of Dolphin employees within 60 days of closing.
In addition, GPI will make earn-out payments to Dolphin. These earn-out payments include: 3% of net revenue on certain sales to specific Asian-based casinos over the next five years subject to a cap of a total of $500,000,000 of net revenue; and 15% of net revenues on sales to our related party casinos for an indefinite time period for the first $10,000,000 of net revenue and, in addition, 3% of net revenue from these related party casino sales over the next five years subject to a cap of $30,000,000 of net revenue. Dolphin shall only be entitled to earn-out payments above $900,000.
Sentiment: Strong Buy
I stand corrected. 60% paid at closing (~3.54M) with the balance (~2.36M) paid out over 24 months (~100K/month)
I am glad that we are selling the Dolphin division. EGT was obviously incapable of CONSISTANTLY running a Casino chip mfg. business profitably if they are selling @ 35% below cost at ANY time - for ANY reason. I guess the Ho family is going to have to start paying full price for gaming chips to GPIC now.
(From Seeking Alpha Transcript)
"...We recorded a gross margin loss of $456,000 for this division, compared to a gross profit of $610,000 in the prior year period. The increase in the loss was primarily due to lower production volumes, which led to higher production inefficiencies and under-absorption of overhead costs for the gaming chips and plaques....."
This Dolphin divisional loss is just another example of why I am concerned about EGT's Management and staff's ability to CONSISTANTLY operate NEW business operations at a profit.
[Clarence Chung] "....2016 is a transitional year for the company where we are focusing our business operations with the sales of a legacy business and engaging in efforts to add new ones. We are committed to utilizing our resources to capitalize on the right opportunities in growing markets...."
Based on that, I am GUESSING:
- non-renewal on PI contracts in June.
- Eventual sale of NAGA EGMs to NAGA (best possible outcome for those 667 machines).
- Remaining EGM revenue sharing contracts not renewed after contract ends.
I sure hope that they come out of the gates with more positive results than excuses on these new ventures. EGT's history as a profitable company is 'spotty' at best and based on Clarence's comment above, the chance for profitable quarters for the rest of 2016 is not looking good.
EGT is going to 100!!!! (NOT)
$EGT will receive 60% of 5.9 Million Dollars on closing date as per CC. Please read the transcript.
Sentiment: Strong Buy
Ihub, that is a moronic statement.
EGT is down because of
Failure after failure at their business
Dilution of stock after countless reverse splits
Management that works for other companies and does nothing for EGT
Shareholders that have been burned by hype
Why don't they just liquidate the cash and give it back to shareholders.
Shoot this and put it out of its misery.
Details are already available in the 4/22/2016 PR .
EGT **WILL NOT** receive 5.9 Million dollars in Cash on closing date ...It will take 24 months for EGT to get paid in full. Plus they get some additional non-specific "earn out payments" over the next 5 years.
"...Under the terms of the LOI, GPIC will acquire the assets of Dolphin including fixed assets, raw materials and inventory and intellectual property for an estimated cash purchase price of approximately $5.9 million, subject to physical inventory counts at closing. The purchase price will be paid out in installments over a 24-month period after closing. In addition, GPIC will make earn out payments to EGT over the next five years based on a varying percentage of net revenues on certain select sales to specific Asian-based casinos....."
EGT has been 'Cash Rich' for quite some time, but the PPS has been declining the whole time that Cash has been increasing, why would 5 mil more in Cash make any difference if EGT fails to operate at a profit and show revenue GROWTH on a consistent basis?
That 5 mil you tout is a one-time-shot that comes from cannibalizing the business and realistically it is just 5M more that HK200 gets to play with (since they control the company). The only thing that EGT has left to sell are their EGMs and possibly their contracts (if any survive the year and IF that is even allowed in the contract restrictions).
Can EGT "Live" off of 35M? Yes, but for how long? It will depend on the Cash burn rate of the new project(s).
Won't really know that burn rate for a few more Qs.
$EGT got over punished because of Casino Industry Slow down and Chinese Growth Scare. Just watch how Wynn Resorts got punished. WYNN was trading at 1/3 rd of book value.
Sentiment: Strong Buy