That outlines a plan to arrest the PPS free fall that EGT has been experiencing since Mid-June of 2014. Even though they own a majority of the stock, they still have a responsibility to ALL shareholders.
you are not going to see your target PPS with this pocket change volume....only 300 shares traded today as of this post
You DO realize that a 4.00 target is 1.00 pre (most recent ) RS and that would have 'just barely' got us above the delisting watermark pre RS. Achieving that target is not much of an accomplishment by any measure.
This company is running our of slight of hand accounting tricks (like multiple RSs) and will eventually have to actually generate some bottom-line revenue - or go private.
The CNBC article and video brought up at least 4 issues to consider:
1. "...The bullish call is premised on HOPES that the world's biggest gambling hub [Macau] will see signs of a recovery in the second half of 2015...."
2. EGT is not a Macau gaming stock. The politics of Macau are separate and aside from the rest of SE Asia
3. Start video @ 2:25 ... "...We are not sold on the Philippines as a prefered destination for outbound shiny gamblers, but time will tell"
4. Large companies are starting to eye Cambodia and Vietnam. They have deep pockets and can steal contracts. NAGA is without a doubt THE #1 CONTRACT to win in all of Cambodia and Vietnam. EGT has proven that. Just compare the WUD of NAGA to the WUD of any other EGT venue. Those historical revenue results are all in the SEC public domain.
No typhoons, tsunamis, torrential rain, floods, fires, earthquakes, landslides, tornados, locusts, rabid monkeys, snakes, packs of ferral animals roaming the streets, or any other acts of nature (or armed forces) to interfere with gamblers getting into casinos to spend their money.
Maybe EGT will squeeze out a .01 positive EPS for 1Q2015....unlikely w/o a RS to reduce the share count, but it's a nice thought anyway.
Here's the game: 1Q2015 ends in 2 weeks....Will EGT have a positive EPS in Q1? and if so, what will the EPS be?
...winner is determined by closest guess to published Q1 results. DISCLAIMER The winner 'wins' nothing more than bragging rights (which is no different than the ROI that you are currently getting on your EGT shares right now...except you are probably not bragging about that)
Factors to consider:
* Chinese New Year was not hampered by weather or politics.
* no significant military actions on the borders.
* 1:4 RS fading in the rear view mirror leaving behind a 4x lower share count than in the past Qs (The 'PS' of EPS).
* No closed Dreamland venues in Q1.
* No Typhoons, Tsunamis, catastrophic flooding or other 'acts of God' to destroy or damage infrastructure around EGT venues or any EGT venues themselves.
* MELCO acquired a larger % of EGT through Rights Offering
It will be a sad day for EGT when Daddy MELCO says, "I'm tired of you mooching off of me. Go get a job."
So with zero debt and 1,062 EGM seats in operation in three venues, the STOCK MARKET values EGT stock @ aprox. 1.70/shr .... AKA .425/shr before RS#2 .... or .10625/shr before RS#1
Way to go Management Team!!! Great Job! (not)
W/O the RSs to artifically increase the PPS, EGT would be trading in the Pink Sheets.
Same thoughts as before. MELCO can only feed us a few contracts per year at best. Until EGT can capture a regular flow of customers outside of MELCO so that revenue is contributed on a regular basis quarter after quarter, I do not factor in the Casino Chip division AT ALL in my expectations.
Cash is not helping the company, because it is not being used for anything that contributes to net earnings
This is a pitiful synopsis of 2014 (net loss of 2.5 M adjusted)
"The Company reported a net loss of $2.8 million, or $0.09 per share, on a weighted average diluted share count of 32.8 million shares for the 2014 fiscal year. The 2014 fiscal year net loss included a net loss of $325,000 from discontinued operations related to Dreamworld Pailin. Excluding the discontinued operations, the Company reported a net loss from continuing operations of $2.5 million, or $0.08 per share, for the 2014 fiscal year. "
EGT will NEVER see 4.00/share (which is the 1.00 min listing requirement pre-RS....pitiful) until Management can demonstrate to Wall Street that it can consistently run a profitable business and show a net PROFIT quarter after quarter. It has not been able to do that in YEARS. The fact that EGT is a consistent money LOSER is why the PPS is in the toilet.
below that is uncharted freefall. 1.60 = .10 pre 2x Reverse Splits
Guess we will find out in Mid-May if EGT is capable of showing a positive EPS with this 16x reduced share count.
Not exactly. Based on daily volume, they could never have aquired the same # of additional shares in the open market (Avg Daily Vol ~ 26K). The Rights Offering allowed them to increase their % of ownership because not all rights were exercised.
NASDAQ granted EGT a 180 day extension on October 17 (see below). Since then we have heard exactly NOTHING from Managerment on how they intend to remedy this issue, be they did manage to grab a larger % of the company through the Rights Offering.
Because of the required 10 consecutive business days above 1.00 the drop dead date is really March 30 and not April 13. If EGT is not above 1.00 by March 30, then it will not be able to meet the mandatory 10-consecutive business day requirement.
IF EGT goes private and offers shreholders a 50% PREMIUM over the current PPS of .4357, that would only be .65/shr...It is unusual for shareholders of a weak company like EGT to be offered a 50% premium. so .65 might be a BEST CASE.
Would that share price put your investment in the black or would you still be underwater?
HONG KONG, Oct. 17, 2014 /PRNewswire/ -- Entertainment Gaming Asia Inc. (NASDAQ: EGT) ("Entertainment Gaming Asia" or "the Company"), a gaming company focused on emerging gaming markets in Pan-Asia, today announced that on October 15, 2014, the Company was notified by The NASDAQ Stock Market LLC ("NASDAQ") that it has granted the Company an additional 180-day grace period, or until April 13, 2015, to regain compliance with the minimum $1.00 bid price per share listing requirement.
According to the notification, if at any time during the second 180-day grace period, the minimum closing bid price per share of the Company's common stock closes at or above $1.00 for a period of ten consecutive business days
Sorry. I am still trying to remember what I had for lunch yesterday! You might try clicking on the [My Posts] tab at the top if this page and go back to around mid-June 2012 (previous 1:4 RS)
I agree that EGT will get to 1.00 (or perhaps higher) but it will take a RS to get there.
NOTHING has changed in the ongoing revenue stream to warrent a 2x+ change in the current PPS.
Sorry Booya, You guys can't hype/pump EGT this time because there is a documented history of performance of ALL active EGT venues in the 10Qs. Hype only works in the absence of FACTS.
As was pointed out to me via email, the math in my previous post is off...Instead of a total of 1:8 RS impact to your total share holdings over the past 3 years, the correct number is 1:16 because the 2nd RS was applied to shares that were previously RS'd in 2012....(sigh)
They company will say this is a 'cash neutral' transaction blah blah blah...but the best way to increase share value is to GENERATE PROFIT...a novel business concept that EGT may want to consider at some point in the near future ...or put NEW people in Sr. Management roles that know how to make that happen.
If anything GOOD can be pulled out of this "business", it would be this....
Regardless of how many times EGT Management Reverse-Splits the stock (1:8 and counting...) or makes blatent power grabs for control of the company through BS transactions like the "Rights Offering", a dollar is still a dollar (more or less) and now EGT can show a better EPS because the denominator in that calculation just got 4x smaller. Now we see if EGT management - especially Mrs. Mangini can do their jobs.
PPS @ 1.75 - 2.00
EPS @ .03 -.04
This opens up the door for institutional and investment investors ...assuming that the PPS does not drift down again. EGT needs NEW contracts and MORE gaming chip sales. MAKE IT HAPPEN!
Final observation: a 4x smaller float will probably make the EGT PPS a little more volatile so we could see bigger swings (assuming that anyone wants to buy this stock other than the market makers)
Things are not looking good for EGT right now after the RS. A High of 2.61 post-split...down to a low of 1.60 post-split...1.60 = .10/sh before all the the RSs were introduced over the last 4 years. Given the elimination of debt, that PPS is not a strong market endorsement of EGT's future success. One other additional downside of a RS not discussed previously is that because the RS raises the PPS, it makes EGT more attractive to short - which probably explainse the temporary surge to 2.61 the morning after the RS (short sellers buying in)
Unfortunately, the market may decide NOT to wait for EGT to renegotiate their contract with NAGA before pushing it off the cliff. A lot depends on the next 1-2 10Qs. If EGT announces new contracts in reasonably large ACTIVE venues, then MAYBE this can be a turn-around story. If this company cannot demonstrate they are capable of generateing and new recurring PROFITABLE streams of revenue, then stick a fork in it - EGT is cooked.
On the positive side NASDAQ closed over 5000 yesterday, so at least you can use EGT as a tax writeoff against the profits that you have made elsewhere in the market.
The fat lady is practicing her musical scales backstage, good luck to all.
OK BeautifulDay, that is reasonable, but I do not see that informaion plublished anywhere...please site your source.
I see that the end of the Rights Offering PR Newswire indicated , "... aggregate gross proceeds of approximately $15.0 million...." but I do not see your number published anywhere.