Replies to post #1095 on Kinbasha Gaming International, Inc (KNBA)

[dgtams]

I think getting good DD on those two companies is essential DD for KNBA. Don't you guys think? EIUS was a company that had 5 parlors and wanted to expand to 40. They also owned the land. So they had assets. So did they just go out of business or went private?

[Big Brother]

I didn't look into EIUS that closely but I did look at PGMI Inc and it appeared to me that they were forced out of business by some big players. Basically their balance sheet was rather ugly, they were operating at a loss, they decided to open 2 more large parlors even though they were not profitable, seems like it was a last ditch effort for them to regain profitability.

As soon as they opened for business a couple of the big boys opened competing parlors in the same exact area. Pachinko is cutthroat, the bigger players knew that PGMI Inc was not doing well so they went for the kill to lessen the competition.

I don't know if Kinbasha was one of those who helped put them under, I didn't look into it that far but the bottom-line is that PGMI Inc ended up folding because they just couldn't compete in a tough, competitive industry.