| BUSINESSWEEK ONLINE : MAY 17, 1999 ISSUE | ||||||||
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| INSIDE WALL STREET
Multimedia: The Web's Bingo Hall Bingo online. That's what Multimedia Games (MGAM) has started offering at its Web site, www.betnet.com. Multimedia makes interactive bingo games and related electronic player stations and equipment, which it sells to some 70 Native American bingo halls around the country. ''Bingo online could fatten both revenues and earnings at Multimedia,'' says money manager Steve Flaks of Flaks Investment Partners in Scottsdale, Ariz., who is accumulating shares. The stock, trading at 6, is attractive not only because of the Internet play but also because Multimedia could end up being acquired, says Flaks. Informal talks are going on, he says, for the possible purchase of Multimedia by a large maker of slot and poker video machines. The company's products include MegaBingo, MegaRacing, and FlashCash. This last item is a new interactive video game available on Multimedia's Web site. Multimedia has a niche in the Indian gaming halls, says Flaks. And it's profitable: He expects the company to earn 55 cents a share this year on estimated revenues of $125 million, up from 1998's 35 cents on $70.5 million sales. Flaks says that, for a company with a market cap of only $32 million, Multimedia is way undervalued--considering its earnings prospects and potential on the Internet. He figures it's worth 25. Multimedia Chairman and CEO Gordon Graves says the Internet will enhance Multimedia's growth but declines to comment on whether the company is in talks with suitors. BY GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Multimedia: The Web's Bingo Hall CHART: No Big Score So Far INTERACT E-Mail to Business Week Online | |||
