Hello friends! This is our second gaming stock I believe on this site. The list gets so long it is hard for ME to remember all of our posts. I hope you enjoy reading them. Anyhow, yesterday I didn't find much that met my criteria on the movers....but this morning came across Multimedia Games, Inc. (MGAM) even though the rest of the market is a bit anemic and is pulling back as I write.
Multimedia Games, according to money.cnn.com, "...designs and develops interactive Class II bingo and Class III video lottery games and related electronic player stations and equipment that are marketed to Native American bingo halls located throughout the U.S." If MGAM does anything like the performance of IGT the past twelve months, this could be a real winner! In any case, some people are 'hitting the jackpot' today with MGAM, for as I write, the stock is trading at $34.30 up $4.35 on the day or 14.52%.
On July 30, 2003, according to the NYTimes on the Web from Business Wire, MGAM reported their third quarter results for the quarter ending June 30 2003. Listen to these results(!): net revenue jumped 46.7% to $37,9 million from $25.8 million last year, and Net Income was up 29.5% from $6.8 million to $8.9 million this year..or diluted eps was $.60 vs $.47 last year, a 27.7% increase.
Looking at Morningstar.com, we find revenue of $70.5 million in 1998, $88.9 million in 1999, $96.8 million in 2000, $131.8 million in 2001, $291.0 million in 2002, and $330 million in the trailing twelve months.
Free cash flow has been improving: $4 million in 2000, ($1) million in 2001, $2 million in 2002, and $3 million in trailing twelve months.
Assets/liabilities look excellent with $25.1 million in cash and $13.5 million in other current assets vs. $22.3 million in current liabilities and $8.5 million in long-term liabilities.
This stock actually looks CHEAP with a trailing p/e of 14.06, a price to sales of 1.13, and a PEG ratio of 0.66. The market cap. is $447.7 million with 13.12 million shares outstanding and 11.30 million of them floating. There are LOTS of shares out SHORT, with 2.18 million of them reported as of 8/8/03. Beats me why they sold short but now they are going to have to COVER THEM...yippee..if you are long!
I don't own any shares of this issue but certainly will look later at picking up some. I will give you a headstart on this....but things do look interesting!
Thanks for stopping by!
Bob