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Global Entertainment Kicks off IR Program, Locks 70 Percent of Shares
Global Entertainment Holdings/Equities Inc. (GAMM) announced last week the completion of a shareholder agreement to begin an investor relations program and lock up 70 percent of its issued and outstanding shares of common stock. The company's president and CEO, Donald J. Lisa, said the move was precipitated by what they see as a "significant undervaluation" of the company's common stock. An outside firm has been hired to develop an investor relations program to increase the liquidity of the stock by "effectively communicating the company's corporate opportunities and financial achievements to the investing public," Lisa said.
A group of the company's shareholders has demonstrated its support for the idea by agreeing to refrain from selling what amounts to 70 percent of the company's shares for one year.
Paradise Valley, Ariz.-based Global Entertainment is the parent company for IGW, which develops Internet gambling software, and Prevail, which operates three Internet gambling Web publishing sites.
In addition, Global Entertainment announced its net profits for the first quarter of 2001: Net profit from operations was $58,965 for the quarter ending March 31, 2001, as opposed to $81,289 for the same period last year.
Companies to Be Affected by Australian Legislation
Australia's government has apparently backed down from its proposed legislation to ban all forms of Internet gambling and wagering, but several companies still stand to be affected by what the bill now entails. Four Democratic senators have guaranteed to support the amended legislation, which aims to make it illegal for any foreign or Australian-owned company to offer online gambling to any person within Australia. The bill concerns the state's seven TABs as well as online gaming sites such as Canbet (CBT), eBet (EBT) and Gocorp (GOC). TAB Ltd. (TAB) generates $110 million annually from its online operations.
eLOT Keeps Nasdaq Listing
Last Thursday eLOT, a provider of Web-based retailing and marketing services to government lotteries, announced that it has retained its Nasdaq listing. The company's common stock will now be listed on the Small Cap Market under the ticker symbol "ELOTC." The company's continued listing will be subject to a temporary exception to the net tangible assets and minimum bid requirements of the Nasdaq Small Cap Market. eLot's inclusion in the Small Cap Market is contingent on the company meeting the following conditions by Aug. 15, 2001: The company must make a public filing showing compliance with the Small Cap Market's shareholders' equity standard and must accomplish a minimum closing bid of at least $1 per share. If eLOT meets those conditions, it will continue to be listed on the Small Cap Market. Since May 31, 205 companies have been delisted. eLOT's 52-week range stretches from 0.0938 to 3.5.
CasinoBuilders Enters Letter of Intent
CasinoBuilders.com Inc. (CSBD) and Neighborhood Access Corporation signed a letter of intent for CasinoBuilders to purchase all of Neighborhood Access' assets. Shareholders will get cash and newly issued shares of restricted casino voting stock worth US$1.6 million. Neighborhood Access Corporation provides applications, connectivity and secure hosting using the latest methods to provide multi-media advertising and product presentations online.
TAB Stocks Rise
Totalisator agency boards gained last week on the Australian sharemarket as a result of the Australian government's decision to exempt sports betting operations from the proposed online gambling ban. The legislation now calls for halting online casino-type gambling, but wagering on sports will still be allowed. The New South Wales TAB rose AU$0.03; Victoria's Tabcorp increased by A$0.11. TAB Queensland was up AU$0.043. Online gambling companies stayed relatively put: Canbet rose $0.02; eBet fell AU$0.01. Aussie Online's Cyber Raceways venture would be helped by the legislation, but its stock remained at AU$0.11.
Trading Temporarily Halted for iTV stocks
Vancouver, British Columbia-based iTV Games Inc. (CDNX: TVE) asked for a halt on June 13 in the trading of its shares while it challenges the enforceability of a court judgment requiring it to pay more than US$3 million to Philip R. Fioretti in exchange for shares of BingoNet Inc. In March 2000 iTV purchased shares in the capital of BingoNet from Fioretti for US $6.5 million. When iTV could not make its schedule of payments, a judgment was reached in the state of New York for the balance as well as a penalty fee. In addition, on June 19, 2001, Fioretti began proceedings in British Columbia claiming CAD$4,939,893.67, which is equal to the equivalent to the balance, penalty and interest. Trading of iTV shares resumed June 22. On Monday, June 25, it ended the day at 0.11.
Do Consumers Care About Stock Price?
The public's perception of a company has little to do with the company's stock price, a survey by Landon Associates found recently. The branding and design consulting firm polled more than 11,000 Internet users in 10 countries to find out the top seven brand aspects of technology companies. Most people rated corporate reputation, name brand recognition, company expertise, advertising, online presence and CEO reputation above share price. The survey also found that wireless device users in China and Mexico were much more likely to have bought goods or services using such a device than wireless users in America.
A Stock to Watch
Newly listed on the AIM, Aspinalls.com's stock saw a high last week of 16 pence on Friday and a low of 15.5 pence on Wednesday. Share prices were 15.75 pence when the market closed Friday.
GTECH Announces First-Quarter Results
GTECH's operating results for the first quarter of fiscal 2002 totaled $235 million. That's a 3 percent decrease from fiscal 2001's first quarter revenues of $242 million.
GTECH Holdings (GTK) - First
Quarter 2002 Report