Ken Deen's THE AGGRESSIVE TRADER(tm) "Seeking double-digit profits in one to four months" Vol. 2, No. 60 April 2, 1993 9:50am New York Time ********** Market Stance: Cautiously Bullish ********** ALERT ITEMS: Market Commentary: See below Marginable Account (editor's personal account): No Trades IRA Account (editor's personal account): No Trades DESI(tm) Account (a computer-simulated hypothetical account): No trades DESI(tm) Buy/Sell Signals (computer-generated): None Other Strong Recommendations: (These stocks will be tracked and followed up with sell [or cover] alerts.): * President Riverboat Casinos (NASDAQ: PREZ, $60.13) EPS:81, RS:97, GR:27->6, PE:51, Leisure&Recreation-Gaming ********** TRADING IDEA ITEMS: (These are NOT buy recommendations. They are merely suggestions for your further research.) Breakouts (The following stock(s) have excellent sales and earnings growth, and have just broken out from a six-week or longer base.): * Copley Pharmaceutical (NASDAQ: CPLY, $45.25) EPS:99, RS:91, GR:52->52, PE:43, Medical-Generic Drugs (Vol.2 #53) ********** President Riverboat Casinos This is one of the most powerful stocks in the entire stock market. It is a new issue, having come public last December. It traded as low as 21 3/4 on Dec. 16. The stock has nearly tripled, then, in less than four months. However, I see plenty of additional upside potential on the basis of the company's recent spectacular sales and earnings. The stock is somewhat overbought, and I have decided to pass it up today with my own money for that reason. There may, possibly, be an even better buying opportunity over the next few weeks. However, this stock is so strong and yesterday's earnings news so powerful that we may not get much of a dip. The stock scores highly on my earnings surprise scale. The P/E, at 51, is lofty to be sure, but down sharply from what it was (over 80!) before yesterday's earnings news. Also, the P/E should fall sharply again next quarter, because the loss in the May '92 quarter will likely be replaced by a substantial profit in the May '93 quarter, sending the "E" (trailing 12-month earnings) further skyward. Here are the last four quarters of sales and earnings; yesterday's news is the last line. As you can see, the company's sales and earnings are exploding: Quarter Ended Sales($mil) Earnings-per-share --------- ---------------- ------------------- May 31 92 12.6 vs 16.3 -23% -0.46 vs 0.08 -0.54 Aug 31 92 20.7 vs 16.3 +27% 0.10 vs 0.09 +0.01 Nov 30 92 37.6 vs 18.5 +103% 0.87 vs 0.19 +0.68 Feb 28 93 31.8 vs 10.2 +212% 0.51 vs 0.05 +0.46 This stock is a leader of the very hot "Leisure & Recreation - Gaming" group, which has moved into 6th place recently (out of 199 groups) from 57th place on Feb. 24. This, therefore, is a leading stock in a leading group. The company reported in yesterday's press release that trailing 12-month earnings were $1.17 per share. I have used this figure to compute the P/E, although it does not quite agree with the sum of the four quarterly figures in the table above. I have not called the company to explain the discrepancy, but neither does it worry me. This $1.17 per share for fiscal 1993 (ended Feb. 28) blows off the map the recent consensus estimate of 28 cents a share. Yesterday, the stock was up 3 1/8 on slightly higher-than-average volume in response to the earnings news. Located in Davenport, Iowa (319-328-8000), President Riverboat Casinos develops, owns and operates riverboat and dockside casinos offering low-stake gaming, dining, and entertainment. All rankings in today's Alert are from Investor's Business Daily. ********** Previous Alert: Vol.2 #57 (April 1, 1993) ********** *** To all who download this newsletter *** On May 1, 1993, this newsletter will be available only for a subscription fee. There will be no further uploads on or after that date. From now through April 30, 1993, I am offering at-cost subscriptions (very very inexpensive) by e-mail, fax, and postal mail. These are alternatives to downloading. E-mail via Internet is free during this trial period. Monthly Status Reports (available in printed form only) are an essential adjunct to these timely bulletins. Among other things, they review the stock holdings and historical performance of each newsletter account. To receive a free sample Monthly Status Report plus an at-cost subscription form, just send your paper mail address. -Ken Deen ********** The Aggressive Trader is edited and published at irregular intervals, but at least monthly, by Deen Capital Management, Inc., P.O. Box 4791, Santa Barbara, California 93140, (805) 565-2039. CompuServe: 72020,2050 Internet: 72020.2050@compuserve.com Deen Capital Management, Inc., its principals, employees, affiliates, and/or clients may have positions in securities recommended herein and may make additional purchases and/or sales in these securities. Recommendations made in this publication involve a high degree of risk and may result in losses. Readers should not assume that recommendations will be profitable or will equal past performance. The information in this publication is collected from sources believed to be reliable, but neither the accuracy nor the completeness of this information is guaranteed. The Aggressive Trader, Deen Earnings Surprise Index, DESI, and DESI-3 are all trademarks of Deen Capital Management, Inc. Copyright (c) 1993 Deen Capital Management, Inc. -END-