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Entertainment Gaming Asia Inc. Message Board

  • tank844 tank844 Nov 18, 2012 7:17 PM Flag

    P/E Ratio = 145 Too High

    EGT P/E ratio is extremely high. I think EGT is going up because some people think a high PE is good. Eventually, these people will realize any PE over 50 is very bad and then EGT will be at $1 a share. EGT is going to lose money in the fourth quarter because there are too many casinos keep being built in Cambodia and Phillipines. At the end of the quarter PE will be over 300.

    Sentiment: Strong Sell

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    • I do agree that the PE is too high, but I believe that over the next 2 quarters growing top line revenue will filter down to the bottom line as Net Earnings will drive that PE number down significantly.

    • It is an insignificant possibility that costs at established locations will EVER outstrip revenue at any established venue and I very much doubt that EGT will "lose money" going foward because most of their business is participation and ~ 1/2 of the revenue comes from NAGA which has an exclusive rights to the greater Phnom Phen market. SG&A expenses have been trending down/flat over the last 4 quarters and have only risen slightly because of operational expenses associated with being an owner/operator. There is an opportunity for flat growth if significant equipment pruchases are required prior to opeing a large venue but given the current strong cash position, that is unlikely.

      Southeast Asia remains a target development market, but that is in answer to growing casino reveues. According teh the Minister of Finance in Cambodia casino revenues were up over 25 % in 2011 (over 2010) and anticipated to grow that much or more in 2012 (over 2011).

      Tank, you should better understand the EGT revenue model and the activity in the region before making general, unsubstantiated, and misleading statements.

    • i can tell math wasnt your best subject

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