Alliance Gaming to Split Stock
Alliance Gaming Corp. (ALLY) is planning to split its stock 2-for-1 for the second time in a year.
The Las Vegas-based company said Wednesday that it will issue its shareholders one share of stock form each share they own as of April 2. The split will take place on April 8. Alliance last split its stock on Aug. 21, 2001; since then the price of the stock has increased almost 73 percent.
In October 2001, Alliance announced a deal with Virtgame Corp. (VGTI.OB) to develop graphic-rich interactive gaming software. The company also announced recently that it has closed on its purchase of Advanced Casino Systems Corp., a casino software supplier based in New Jersey.
Scientific Games to Offer 12.5 million More Shares
On Friday, Scientific Games Corp. (SGM) said it has filed for permission to offer 12.5 million newly issues shares of Class A common stock. Bear, Stearns & Co. will underwrite the offering.
The lottery services company is allowing the underwriters an option for a 30-day period in which buyers can purchase up to 1.85 million shares, to cover any possible over-allotments.
A registration statement filed with the Securities and Exchange Commission has not become effective. Until it becomes effective, no offers to buy may be accepted.
TAB Buy-Back in the Works
Australia's TAB Ltd. (TAB) is entering into a 10 percent off-market voluntary buy-back.
The buy-back, which will be funded by debt, will begin on April 11 with an initial price of AU$2.74. The price will be adjusted according to changes on the Australian Stock Exchange All Industries Index. The offer will close on May 14 with a maximum final price of $3.10. Warren Wilson, the managing director of TAB, said the buy-back will make it easy for anyone wanting to get rid of TAB shares.
"The buy-back offers a cost-effective, simple way for shareholders to dispose of their holdings and enables TAB to achieve a number of ongoing capital management objectives," he said.
Station Releases Q1 Estimates
On Wednesday Station Casinos Inc. (STA) said its first-quarter earnings would likely top Wall Street's expectations thanks to the company's cost cutting and a relative upswing in the Las Vegas economy.
Station, which announced in February that it is getting into the Internet gambling business by purchasing 50 percent of SunOnline, is expecting shareholders to gain 16 cents to 18 cents per share. Last year shareholders earned 19 cents per share.
The Las Vegas casino operator expects EBITDA to range from $59 million to $61 million.
Merrill Lynch Writes Positive Report on Wembley
Merrill Lynch published a report recently that asks whether Wembley (WMY) is appropriately appreciated by the financial sector.
The report is titled "Wembley: Probably the most undervalued gaming company in the world." In it, the investment brokerage writes: "In our view, Wembley is being materially mispriced by the market and we struggle to see why."
Merrill Lynch said the Irish bookmaker is on track to make the best of the upcoming deregulation of the United Kingdom's gambling industry as well as proliferation in the United States.
The company also predicts growth for Wembley's U.S. racetracks and U.K. greyhound tracks, and estimates that Wembley's 24dogs.com is worth about £125 million.
Youbet.com Conference Call March 27
Youbet.com (UBET) will release its yearend results and hold a conference call on March 27. The call, which will be Webcast, will take place at 5 p.m. EST. To listen to the call, go to the "About Youbet.com" section of the company's Web page, www.youbet.com. An online replay will be available for 90 days. A telephone replay will be available until April 3 by calling 888-266-2081; international callers should dial 703-925-2533. The passcode is 5862451.
Report Released
U.K. entertainment group Enic plc (ENI) released its interim results, which reflect falling pre-tax profits and revenues due to less than stellar performance of London soccer clubs. The company's pre-tax profits are down to £1.0 million from £30.1 million for the same time last
year; revenue is posted at £13.9 million compared to last year's £29.9 million.
Enic plc (ENI) - Interim Report