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Asia Entertainment & Resources Message Board

  • drjackcar drjackcar May 12, 2011 1:52 PM Flag

    from the CC

    Management indicated they expect some business in the existing rooms to be diminished by the opening on the Galaxy. So my EPS model is probably too high.

    That being said I still think the EPS will be safely over $2.

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    • I agree with Doc. The business will grow nicely on an organic basis with the cash generation. Are we complaining that the insiders are not selling? I always thought it was a bad thing seeing insiders sell. It is always hard to see your stock unloved by the market - all of the cinese stocks fit that catagory at the moment, but as long as you are convinced that what is reported is right ( I am) - then it impossible to believe that this stock is not worth alot more than $7. Patience is a virtue.

    • a shame indeed!

      AERL is an ATM! Sadly, the street fails to recognize its cash generation coupled with its audit safety by the gaming commission...insane

      • 1 Reply to ericallengold
      • Problem seems to be that most of the "profits" are tied up in a growing markers receivables and cage capital.

        The P/E of 4 is almost irrelavant at this stage - there are alot of 4-5 P/E Russian companies too.

        The only way that insiders can "cash in" is through a public secondary or private placement, and until that happens and there is some street coverage, this could be dead money.

        Maybe the stock is reflecting a coming offering.

    • Thanks for the update Drjackcar.

      I picked up another 7,000 shares today around $7.33.

      I still like AERL on the basis of: big picture fundamentals, massive cash generation (a license to print money), operational simplicity, significant tri-interested party (Macau tax authorities, Casino staffing, and AERL management) daily control of operating performance.

      Understand the history of the industry very well - including its less than perfect elements. But, this background actually provides further opportunity to AERL in my view.

      We'll see - still think 2011 and beyond will be tremendous years for AERL as Macau continues to growth strongly.