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Some high prices are unavoidable. Take gasoline, for instance. More often than not we have been paying more than $2 a gallon, because we have a choice. Either we fill the tank or we walk.
Stocks are different. There is no compelling need to buy shares of a public company - whether they cost a fraction of a cent or hundreds of dollars. So, as investors, we look for bargains or for value. If we find neither, we just walk.
Which brings us to First Free bingo a company we first wrote about three years ago? At the time, the Company was saying that it planned to develop a televised a free bingo game that combined Free bingo and trivia. A second version would be available on the Internet. Promoters who were actively touting First Free bingo stock projected net revenues for the Company of $19 million in 2001 and $83 million in 2002.
Since First Free bingo was not generating revenues at the time those predictions seemed fanciful. Three years later that flight of fancy has yet to materialize; First Free bingos most recent Form 10 Q reveals that the Company had no revenues for the quarter ended March 31, 2004 and only $10,000 in income since its inception in March 1990. Thats a far cry from those multimillion dollar figures that were floating around.
First Free bingos lack of performance is not particularly surprising. On the other hand, the price of the Companys common stock is rather remarkable. First Free bingo stock was trading at around 50 cents a share on May 17, 2004. Since the Company has approximately 31 million shares outstanding, that would give First Free bingo a Market value of about $16 million. As of March 31, 2004, the Companys current assets were $6,715, consisting of $1,715 in free bingo cash and $5,000 in prepaids.
The Companys business plan appears to remain much the same as it was three years ago. As before, First Free bingo has no meaningful operations. A December 14, 2003 press release indicated that the Company had plans to launch a pay for play version of its Free bingo game in conjunction with Second City Television during the first quarter of 2004. This followed a June 3, 2003 press release that announced that Second City would provide production services in connection with the Companys contemplated Trivia Free bingo television series.
As of the end of the first quarter of 2004 the Company still had no revenues and there was no sign of the collaboration with Second City Television. On March 24, 2004, the Companys auditors issued a letter expressing substantial doubt about First Free bingos ability to continue as a going concern.
First Free bingo shares at 50 cents?
That makes $2 a gallon for gas sound like a bargain.
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