Earlier this week Century Casinos ( CNTY) 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). For the rest of this week's short-squeeze opportunities, including Sturm Ruger ( RGR) and Craft Brewers Alliance ( HOOK), check out the Sin Stock Short-Squeeze portfolio at Stockpickr. And to find short-squeeze plays of your own, be sure to check out the Stockpickr Answers community for insights and investment ideas. -- Written by Jonas Elmerraji in Baltimore.Scott Rothbort is answering questions on Stockpickr Answers today.