LV company announces share repurchase

Thursday, Feb. 22, 2001 | 10:50 a.m.

Las Vegas-based Casino Journal Publishing Group Inc. announced plans to repurchase as much as $500,000 of its own stock in an effort to boost share prices.

At its current price of $1.50, Casino Journal could repurchase up to 333,333 shares of stock. That's about 30 percent of the company's "float," or free-trading shares, and about 5 percent of its outstanding stock.

In addition, Casino Journal said it plans to put itself up for sale within one to two years "when market and economic conditions improve."

Casino Journal sold its trade show division, the Casino Journal magazine and weekly newsletter National Gaming Summary to GEM Communications in January for $2.63 million in cash and a 10 percent stake in GEM, valued at $1.8 million. The trade show division included the American Gaming Summit, held each January in Las Vegas.

Proceeds from the sale and cash flow will be used to fund share repurchases.

"Despite selling the assets which generated approximately 20 percent of the company's revenues for nearly 50 percent of the company's market capitalization, the stock of Casino Journal ... has not seen any appreciation in price or an increase in interest in the company from stock investors," the company said in a statement. "The share repurchase is being implemented to reduce the amount of shares outstanding by a significant amount to increase the proceeds for remaining shareholders when the company is ultimately sold."

The company retained a number of consumer-oriented gaming magazines, including Strictly Slots, Poker Digest and the Atlantic City Insider.