Full House Resorts (NYSE AMEX:FLL)

Re-pricing of risk premium

On December 1, 2009 we coded Full House Resorts as a GeoSpecial. We plan on interviewing management in the near future.

Positive Points That Influenced Our Decision

• The stock is exhibiting strong price momentum.
• Full House reported strong third quarter financial results.
• The Company announced that it paid down a portion of its debt obligations. Source:Business Wire (November 30, 2009)
• 4 Analyst estimates are strong, indicating EPS of $0.26 for 2009 and $0.41 for 2010.  Full House reported GAAP EPS of $0.08 in 2008. Source: Business Wire (November 9, 2009)

We Still Need to Interview Management With Emphasis on the Following Items

• The third quarter included $5.8 million in revenue due to management fees, a number that greatly contributed to revenues. We need to ascertain if this will be recurring revenue.
• The Company still has $5 million in short-term debt on the balance sheet.
• We need to verify if the strong third quarter was an aberration or a new level that can be upheld.
• We need to verify analyst estimates.
• The GeoTeam® still needs to address some non-GAAP issues in the Company's financial statements.