Kinbasha Gaming International, Inc (KNBA)

[ragi]

Looks like KNBA has turned the corner after the earthquake, rebuilding and promoting their parlors. Well with the earnings it is surprising that there is no move to trade the stock!!!!

[AsiaInsight]

Kinbasha Announces Milestone Financial Results for Fiscal 2013

Company Reports Net Income of $11.6 Million and Fully Diluted EPS of $0.95 for the Fiscal Year Ended March 31, 2013

HITACHI, JAPAN--(Marketwired - Jul 2, 2013) - Kinbasha Gaming International, Inc. (OTCQX: KNBA), owner and operator of retail pachinko gaming centers in Japan, has filed its annual report on Form 10-K with the SEC and released its financial results for its fiscal year ended March 31, 2013.

Summary of Fiscal Year 2013 Financial Results

Net revenues increased to $93.9 million in fiscal 2013, compared to $91.2 million in fiscal 2012.
Net income improved to $11.6 million in fiscal 2013, compared to a net loss of $6.1 million in fiscal 2012.
Fully diluted earnings per share (EPS) improved to $0.95 in fiscal 2013, compared to a loss of per share of $0.82 in fiscal 2012.

Analysis of Fiscal Year 2013 Financial Results

For the fiscal year ended March 31, 2013, net revenues increased to $93.9 million for the year ended March 31, 2013 from $91.2 million in the year ended March 31, 2012. Net revenues increased due to an improvement in gaming revenues, which increased to $90.6 million in fiscal 2013 from $84.6 million in fiscal 2012. The Company's increase in net gaming revenues was a result of an increase in total wagers with a moderate decrease in pay-outs, which more than offset the decrease resulting from a 5.1% decrease in the yen/dollar exchange rate.

Net income attributable to common shareholders improved to $11.6 million for the year ended March 31, 2013 as compared to a net loss of $6.1 million in the same period of 2012. As a result, fully diluted EPS improved to $0.95 in fiscal 2013, compared to a loss of per share of $0.82 in fiscal 2012.

The improvement to net income is generally attributed to enhanced market conditions, an increase in total wagers due to the reopening of a pachinko parlor that had been closed due to earthquake damage, a $5.2 million gain on forgiveness of debt, and a non-recurring $3.0 million gain resulting from a change in the Company's policy for employment termination benefits. Net income also increased as a result of improved payout ratios due to a shift in the mix of pachinko machines and the positive effects of Kinbasha's marketing programs to promote more cost effective prize payouts.

"We are extremely pleased to report our breakthrough financial results for fiscal 2013," said Masatoshi Takahama, Chief Executive Officer of Kinbasha. "Achieving $11.6 million in net income and an EPS of $0.95 is a milestone achievement for Kinbasha, and a testament to our stated goals of improving our operations and generating shareholder value. As we execute our strategic growth initiatives, we believe the decisions we have made will position Kinbasha to grow in our proven markets while also reducing expenses and reducing debt. We believe this will be a pivotal year for Kinbasha as we continue to improve our financial metrics and expand our presence in Japan's gaming sector."

During the year the Company was able to reduce its total debt from $159.8 million at March 31, 2012 to $132.3 million as of March 31, 2013. As of March 31, 2013, the total debt included $109.6 million of principal and $22.7 million of accrued interest. For the past several years, the Company has negotiated with its lenders and in many cases has obtained formal or informal forbearances and loan modifications that have allowed it to effectively extend the maturity of its debt through interest only and/or reduced principal payments. As of the date of this press release, Kinbasha was not subject to any litigation or foreclosure proceedings with respect to its debt.

http://finance.yahoo.com/news/kinbasha-gaming-international-inc-announces-110100418.html

[Aston Martin]

I am also astonished about the coverage of OTCJournal. This guy does not comment at all why KNBA does not find any interest. But if the stock goes 100% in three years he will comment 'I always said this' LOL
However, I have been interested in KNBA at 1.00, now I even orry to buy at .80. Who knows if shareholder do not get impatient even at such low level and at such low OS. Who know if KNBA does not prepare a dilution and than the stock will drop enormously. KNBA might want to use the US listing for expansion . Well, as we said, so strange that even this would be an option.
I start to worry there might be something fishy !

[Big Brother]

Yep very strange indeed, it's one of the great mysteries that I don't think I'll ever understand. You would be hard pressed to find a more legit company on the OTC yet it gets absolutely zero interest at all. I don't even know what else to say about it other than it's bizarre. I suppose a new IR firm would be a good start, Trilogy has just never been able to get it done for ole' Kinbasha.

[Aston Martin]

Very very strange stock ! 11 mill shares outstanding, enormous revenues filed properly........and ZERO interst - even not gambling - and .80 per share. If this is not strange I don't know what else could be more strange in the stockmarket.

[Aston Martin]

Very very strange. No interest at all ?!?!? Even more worse than any dead shell which is traded frequently by some 100 or some 1000 shares. Never have seen such a trade situation compare to such business numbers like KNBA.

[alpinefrost]

Hum! O-Well back to sleep!

[ragi]

Apparently so...,...

[Aston Martin]

well, real investors do not like OS too low bvecause of volatility of microcaps - on the other hand: japanese and chinese micocaps listed in the States don't have a great reputation anyway. So I do not wonder big players do not get in ande if....very slowly. I think KNBA will have a hard time with this listing.

[ragi]

Were you tracking Kinbasha when they did a reverse split? It seemed a little silly as the already had such a low number of OS. Possibly they believed that a higher SP would interest investors. I am not sure if this Japanese company is intimate with the activity of american stock markets. They could also just be getting their recovery in order after the earthquake in Japan and be getting ready to do more PR in the US, that is of course just speculation on my part.

[Aston Martin]

PS. I can't believe at all a free float of just 219.000 shares. Maybe missinformations about the share structure is the reason investors keepo out. Are we really still at a market value oif 11 million - or already much higher ??!!!!!!!!!!!!!!!

[Aston Martin]

So the next question: Why KNBA is interested in a listing in USA - but is not interested in getting the shareprice to a reasonable marketcap?!

[ragi]

Yeah, that's the question alright. Apparently no investor awareness of it's existence. The PR firm needs to get some exposure for it here in the US.

[Aston Martin]

The top question is: WHY NOBODY BUYS KNBA ?!

[alpinefrost]

Hum! it is nice,

[ragi]

KNBA, nice to see the bid rising, Kinbasha is alive and well. The company now re-investing in improvements to their gaming centers. Tradition is valued in Japan.

[negativegeforce]

Still here and holding. The update is great but yeah nothing to be too excited about. I think we will just need to see continued growth and maybe knba will eventually catch on.

[ragi]

No one left here????? Kinbasha has been around way to long to give up on profitable business as it increases the quality of the experience for players. The PR company needs to reveal some material information that will get investors excited. First of all just to familiarize americans with the large numbers of Japanese who enjoy these games for unwinding after work, plus the social opportunities they enjoy.

[ragi]

Kinbasha, making upgrades to increase quality of the gaming experience for their clientale. This company has been around for a long time, I would think by now they know how to keep their customers happy.
in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTCQX: KNBA) is a
retail gaming company that operates 21 pachinko parlors in the Japanese
prefectures of Ibaraki, Tokyo and Chiba.
For more than 50 years, the company's retail gaming establishments have
offered customers the opportunity to play the games of chance known as pachinko
and pachislo.

[Aston Martin]

Strange chart with regards to the latest good revenues. I still worried to invest as this looks too strange to me................

[negativegeforce]

It needs 2 bottles of nawlz. The big ones.

[TakeChances]

Slowly but surely this is going up.

[negativegeforce]

I honestly thought KNBA wouldn't get on QX until the later part of this year. It took a year go from a pinksheet shell to QB and then a few months to QX. KNBA has blown my mind completely now and I have no idea what to expect next next. Maybe KNBA will be on Nasdaq or Amex by the end of 2013. That would be the tits.

[Big Brother]

Agree 100%, Kinbasha does everything with the utmost transparency and professionalism, it's sort of a breath of fresh air in this sewer of chit known as the OTC market. KNBA wont be here long though, they are bound for the big boards as soon as they meet all requirements.

[negativegeforce]

Lol I must have been really tired when I posted that. I meant Tokyo.

[negativegeforce]

I picked up a little more today. Seems like Kinbasha has really started to shine in the last couple weeks...well at least in my eye. I think its just a matter of time before the price follows. The company proved that it can be hugely profitable and its only going to get much better when securing parlors in Hong Kong. A real long term investment right here. Ive got some tucked away in my IRA.

[alpinefrost]

That is nice, GO KNBA!

[negativegeforce]

NICE.

I should have loaded more friday :(

[Big Brother]

Kinbasha is now on the OTCQX

[negativegeforce]

This is indeed a huge turn around. I can see investors being cautious with a company that is losing money, but there is no excuse anymore. Kinbasha is obviously a money maker and once they can expand their business in Tokyo there is even more money to be had. Its not hard to see this is a winning investment.

I may be picking up some more shares. This is embarrassing to be at these levels.

[Big Brother]

Yep that's what you see, huge turn around from 2011 when the earthquake really hampered operations for the company.

Unfortunately Triology hasn't been able to get results, in terms of volume and price, for Kinbasha as of yet but it has not been for lack of effort on their part as they have really stepped up their game these last several months.

Lets face it though, we always knew pachinko was going to be a tough sell to US investors, it's so alien to Americans, I think the QX uplisting is going to help some though. I believe this will be on the big boards eventually, might take 2 years but it will happen, that's their ultimate goal.

[negativegeforce]

quarterly report came out. Is it just me or do I see 5 million in profit in the last 9 months ?

[negativegeforce]

Yeah I still believe this company has everything going for it just as Brother has pointed out over the last year. It has everything except for being able to reach the big money shareholders. If knba keeps posting good results and starts becoming profitable again I can see this going to $10. QX might be that domino that starts to prove knba is the real deal. Just gotta keep accumulating and wait. It will come.

[ragi]

KNBA getting some action the last couple of days. It is beginning to look a little more hopeful

[Big Brother]

Yeah, obviously not a ton of volume but for KNBA it's actually pretty good......I have not looked back at the historical volume but just from memory it's probably the most since the r/s I'd say.

[negativegeforce]

8400 volume so far about $7000 worth. Haven't seen this much in a long time. I hope this is just the start.

[Big Brother]

I noticed either an error in this report or Kinbasha added a new parlor and has not yet announced it. As far as I know Kinbasha only has 2 parlors in Tokyo, not 3 as the report would indicate, their website also only reflects 2 Tokyo and 18 non-Tokyo parlors.

- The current number of Tokyo metropolitan area parlors is 3, and the KNBA growth plans calls for adding 3 per year over the coming 5 years. KNBA has not specified how many non-Tokyo parlors may be closed, so the assumption represents an analyst estimate.

But then again they say there are 2 Tokyo parlors in this paragraph. As far as what we know it should be 17 in Ibaraki, 2 Tokyo and 1 in Chiba. There were 2 in Chiba but one was destroyed in the earthquake and never reopened:

With respect to KNBA’s 21 pachinko stores, the Company owns 13 of the buildings occupied by the stores. KNBA owns the land on which 8 of the stores are located and the balance of the stores sit on leased land.
Of the 21 stores, 18 parlors are located in the Ibaraki prefecture, 2 are located in the Tokyo Metro area and 1 is located in the Chiba prefecture

So the guy who did the report was either confused or he slipped and told us something that has not been released yet about another parlor.

[Big Brother]

Well if you look at the last 4 stocks that Murphy Analytics profiled, FARE, GBEN, LVVV, GSAG they all had promo's within a short time of the release of the report. This is probably not a coincidence so keep an eye out for unusual volume sometime within the next few weeks and with KNBA any volume is unusual...lol.

[TakeChances]

I guess we will see tomorrow if any volume comes in here. Been a long time waiting for sure.

[Big Brother]

News Out. Did not read the entire report, just skimmed it, it's very long and doesn't appear to tell me much I don't already know about the company.

However, I was looking over the various companies that get "Select Coverage" by Murphy Analytics and I noticed a LOT of these companies on the list have also gotten paid promotions as well. So perhaps KNBA will get one too, if we start seeing any big bids or volume out of the blue we'll know because this thing is always incredibly illiquid.

It's not really KNBA style to run a paid pump but maybe Trilogy is getting desperate. Kinbasha can not be happy with the results they have gotten thus far from Triology, after all they went public to raise capital to open new Tokyo parlors. This thing is so illiquid they haven't sold enough shares to buy a bowl of ramen to this point so something has to give.

http://www.murphyanalytics.com/Covered_Companies.html

Kinbasha Gaming International, Inc. Announces Initiation of Research Coverage by Murphy Analytics
Print
Alert
Kinbasha Gaming International, Inc. (QB) (USOTC:KNBA)
Intraday Stock Chart

Today : Tuesday 5 February 2013
Click Here for more Kinbasha Gaming International, Inc. (QB) Charts.

Kinbasha Gaming International, Inc. (OTCQB: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, today announced the release of an in-depth initiation report by Patrick Murphy, CFA, principal of fee-based independent research firm Murphy Analytics.

In his report, Mr. Murphy discusses Kinbasha, its 21 retail gaming centers in Japan, and initiates fee-based coverage with a 12-month price target of $2.50 per share.

"Kinbasha is addressing the increasing demand for gaming in Japan through our strong operations and retail gaming establishments," said Masatoshi Takahama, Chief Executive Officer of Kinbasha Gaming International. "This comprehensive research report quantifies Kinbasha's progress to date, our proprietary point-of-sale analytical technology and the significant opportunity for us to expand our operations in Japan as we seek to raise capital in the United States to open new parlors in 2013 and beyond."

From the Report, Mr. Murphy stated, "Pachinko is the largest service industry sector in Japan and is embedded in Japanese culture. A Wall Street Journal estimate placed the Japanese pachinko market at 5 times gambling revenue generated in Las Vegas and 7 times that of Macau."

The report details the sizable growth projected in Japan's gaming market. According to industry leader Dynam, a Tokyo-based pachinko operator that recently completed a $200 million Hong Kong IPO, the number of pachinko players in Japan is estimated to have increased 10% over the last three years. Kinbasha's management believes that it is poised to take advantage of this growth as it positions itself to leverage its branding and expand its operations into metropolitan markets throughout Japan.

"The Company is currently trading at approximately 0.12x annualized revenue of nearly $100 million, giving it a market cap of only $12 million," added Mr. Murphy. "Over the coming quarters, Murphy Analytics expects that if KNBA is able to continue to show progress towards profitability and with its capitalization, it is reasonable to expect the Company's price / revenue valuation to move towards the S&P 500 range, and a price of $2.50."

The complete report is available in Acrobat format, free of charge:

www.murphyanalytics.com/uploads/KNBA_Initiation.pdf

[negativegeforce]

I like that news. I added some more. 15k shares now. I think it will pay off eventually. It's gotta hit at least $10 on otcqx.

[$hellKing]

Yep I think its a good idea. They dont have to go .10 or .05. I would buy 10k at .20 or 25


Then again I like my odds with BE MG short term. Then could use profits from that after the RM and buy some of this one. BE MG is same pps as this one. Same OS area almost.

[Big Brother]

Exactly they are going to need a float bigger then 160K shares on the QX, hard to have any liquidity when there are no shares available. Don't want to dump a ton but come on gonna have to release a few eventually so why not hook the few people who are following this up.......at least that's the way I see it....lol.

SOLS did it as well, started out at .05 and gave away a few cheapies in 5K increments, in a controlled fashion and it went from .05 - $1 in 2 weeks very easily.

I think I have about 10 bids out there right now on some obscure, super sleepers hoping someone does the same and lets a few go cheap...lol.

[$hellKing]

Yeah they have to put bids and sells in. They have to put some shares out there. People like volatility esp the QX. Those stocks trade high volumes sometimes. Or heck give some shares away at .20s to everyone who is willing to add.


LGHS did that and it freaking went from .20s to 2.50s

[Big Brother]

No kidding, I don't care if you have to call the Yakuza and ask them to put some bids in, they can't let it fall below .10 that is the absolute minimum for the QX, falling below that will only cause more delays.

[$hellKing]

Sometimes I wonder if some of the people who are supposed to know about OTC, know about otc.... They seem to have some weird general knowledge of OTC from WSJ from 10 years ago. 1 MM on L2 is not good. They need to have bidders. Heck insiders should put some damn orders in.

[Big Brother]

Yeah agree, I think Kinbasha was exceptionally clueless about the OTC market but most of the blame has to fall on their US adviser and Triology who have done a terrible job thus far. Triology is professional, I will give them that but they suck at raising awareness for all the companies they represent, not just Kinbasha. I've run across a couple companies now that I thought were grossly undervalued that use or used Triology at one point.

I'm sure Kinbasha is being told that this level of illiquidty is normal on the OTC QB, thus the reason they are going to the QX and while that may true to a degree, however, they should still be getting at least a little interest given what they have, it's nuts.

It's odd the pachinko industry is sort of seedy, much like US gambling, with ties to the mafia, organized crime and such yet Kinbasha is one of the most legit companies I have run across on the OTC, they approach everything with the utmost transparency and professionalism.

[$hellKing]

The QX will help.imo Its more reputable and I believe those stocks trade a lot. They need more MMs on L2 and off bids and offers.

[ragi]

Yeah, something just isn't taking hold here. An update from company and not one share traded. Dang! it will be nice to get just a little recognition, if some mover and shaker wanted this to move it wouldn't take very much with such an absurdly low OS.

[$hellKing]

Yeah it was low already. The Asians dont think about these things. I dont think they have enough experience in the public markets to know how it works, especially in the OTC.