4/22/2013

TWOC: Trans World Corporation (OTC Listed Value)


Updated comment from prior post : "Random Margin of Safety Value Driven Ideas"

Industry: Resort and Casino

TWOC develops, acquires and manages casino operations in Europe. The company owns and operates three fully-owned casinos in the Czech Republic . “Its casino portfolio includes the Ceska casino consisting of 15 gaming tables and 80 slot machines in Ceska Kubice; the Route 55 casino comprising 23 gaming tables, including 12 card tables, 10 roulette tables, and 1 slingshot multi-win roulette table, as well as 124 video slot machines in Dolni Dvoriste; and the Route 59 casino with 23 gaming tables consisting of 12 card tables, 10 roulette tables, and 1 slingshot multi-win roulette table, as well as 118 video slot machines in Hate. The company also owns and operates the Hotel Savannah, a 77-room, 4-star deluxe hotel; and a full-service spa. Trans World Corporation was founded in 1993 and is headquartered in New York, New York.”

Pros: Strong pattern of insider buying by micro cap value guru Lloyd Miller and Wynnefield Partners Small Cap Value. YTD 2013 Lloyd Miller purchased 388,306 shares for a total of $917,838 or 2.36 per share. He also acquired 88,334 shares that were recorded at 0 per share bringing his average cost per share price down to $1.95 and total share activity to 471,640. Wynnefield Partners purchased 271,821 shares for 666,144. The average price paid was $2.45 during 2013.

They own real estate (casinos,land,hotel) properties in the Czech Republic. Online reviews are positive for the 4 star Hotel Savannah. Czech Republic continues to excel economically.

The stock trades at or near its historical low valuation.  Also, it trades at a  large discount to Resort and Casino industry peers.
Market Cap = 22.95M ,  Enterprise Value: 17.08M  
Enterprise Value/EBITDA: 2.98 , Price/Book : 0.50 , Enterprise Value/Revenue: 0.47
52-Week Change:-25.32%  , Book Value per share = 4.66

TWOC Price on 04/22/13 = $2.60 up from the previous day close of $2.33

Aggressive debt reduction, modest share buybacks, deep discount to book value, successful value institutions as large shareholders help make this mean reversion deep value candidate an interesting tiny (risky) potential opportunity.

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