Today's CGAQ press release brought significant volume to the stock, the question is....is the buying warranted? Was this press release bona-fide? Would you want to be holding shares of this stock going forward?
I'll be quick to the point. No, maybe, and no.
The press release seems like a company orchestrated promotion. If you want investors to like your financials, then file 10q's and 10k's with the SEC. Don't release a fluffy press release that is lacking substance.
With penny stocks it is all about following the herd and buying the hype. Just be sure you are selling the hype before the herd, or you will get trampled.
MIAMI, FL, Mar 23, 2010 (MARKETWIRE via COMTEX) -- Caribbean Casino and Gaming Corp (PINKSHEETS: CGAQ) offered stockholder guidance today, based on its Sosua Bay Grand Casino Location's first 150 Days of Operations.
CEO Steven Swank commented, "We are committed to continuing to provide Investor communications at the highest quality and strive to make investing in CGAQ as transparent as possible while we continue our growth. Further, we are proud to release a guidance estimate such as this, for our first 150 days of operations."
During the first 150 days of operations Caribbean Casino and Gaming Corp. estimates the following guidance based solely on its Sosua Bay Grand Casino location.
Outstanding Shares: 89,217,301The company's estimates are based solely on the Sosua Bay Grand Casino Location and do not include recent promotional expansion considerations and/or re-investment of earnings for future expansion.*
Gross Earnings: $474540US
Book Value Per Share: $0.023
Current Price to Book Value: 3.05
Annualized Earnings Per Share: $0.0128
Current Annualized Price to Earnings: 5.47
Company ROI Annualized: 55.68%
Mr. Swank continued, "Our ability to maximize efficiencies, gain international exposure and penetrate the local market clientele have provided us to become profitable within the first 150 days of business while many companies operate for 3 years before attaining profitability. We have defined an unprecedented business model in the Dominican Republic and continue to find the best opportunities available to replicate the model for the benefit of our stockholders."
*estimates are based upon the company's share price of $0.07 pre-market open on 3-23-10 and yearend results for 2009
About Caribbean Casino and Gaming Corp:
Caribbean Casino and Gaming Corp (PINKSHEETS: CGAQ) is the owner and operator of the Sosua Bay Grand Casino. The corporation is focused on becoming a leader in the Caribbean for gaming and entertainment to include live betting in its partnership with Kenilworth Systems Corporation from cameras located above tables within the Sosua Bay Grand Casino. Not only will Caribbean Casino and Gaming Corp offer world class gaming and accommodations within its facilities for those visiting our properties, but also allow patrons to wager (where allowed) from the comfort of their own home or hotel room. The casino is now the centerpiece in the Sosua Bay Resort at Puerto Plata, Dominican Republic, the largest and most populated Caribbean Island.
FORWARD-LOOKING STATEMENT This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this report are made as of the date hereof and Caribbean Casino and Gaming Corporation undertakes no obligation to update such statements.
Contact:
Caribbean Casino and Gaming Corp
Tyler Cornell
Investor Relations
Email Contact
631-765-8762
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