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Tuesday, December 06, 2005

Table Trac (TBTC) conclusion

TBTC, chart, website, sec

Q1 to Q3 2005
more stuff
google checking

So here we have a future battle between a small company with a basic product in local casinos that has grown organically over a long time vs a big company large project with lots of intellectual property and resources and credibility and connections. TBTC has an enormous head start, but they aren't making progress very fast (one casino per quarter). We also have a wild card with VCAT, which seems very well positioned, but they've had to give up a huge percentage of profits to what is essentially their laboratory casino.

The real showstopper with TBTC was covered here: Recurring revenue is too small. They seem to make about $3,500 per month per casino on recurring revenue. You'd need to subtract a fair amount from this for costs of supporting the casino. Let's say the gross profit is $2,500. This means they probably need 40 casinos just to break even. At 70 cents on the ask, I just don't think it's a good investment.

So that was a lot of work for nothing...

Worth following

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