Earlier this week Century Casinos (CNTY - Get Report) announced a surprise loss, exciting the short sellers that had pushed the stock's short ratio to 12.4. But there's more to that earnings story that just red ink.
The majority of Century's loss was thanks to a write down of $9 million on the company's Polish operations following an increase in gaming tax rates from 45% to 50%. That seemingly small increase in tax has a substantial effect on Century's business in Poland, which operates with relatively thin margins. But with the impact of Poland's operations on Century relatively small, and new analyst upgrades over Macau's gaming regulations, this stock should manage to rebound well.
Century is one of the many small-cap holdings in Lloyd I. Miller's portfolio. The investor holds insider stakes in a number of small OTC and listed stocks, including Youbet.com (UBET) and ZiLOG (ZILG).
Twitter and become a fan on Facebook.