Hotel and leisure group AMZ, formerly Amazing Holdings, has spent several years sitting on its land in Taiwanese archipelago Penghu. However, it is moving closer to embarking upon its casino project.

The pro-gambling KMT party, which is now in power in Taiwan, has passed the first round of legislation that will give the go-ahead to gambling on the islands. Michael Treanor, AMZ’s chief executive, claims: ‘Gambling is highly likely to be legalised, as this party is committed to kick-starting the Taiwanese economy. The land we have has now become very valuable.’

Treanor adds that the company is in an attractive position as it already owns part of the area, whereas others who now wish to invest in the land will have to wait a long time to be able to do so. AMZ will look to fund the project through a joint venture with one of the major casino brand names such as MGM, receiving an overall percentage from the project. Treanor estimates that the land is worth $50m and hopes trading will be able to go ahead in the first quarter of 2009, once the bill is passed by the end of this year.

AMZ has also just announced that it is in the process of finalising the purchase of a hotel in Palawan in the Philippines, which it intends to convert into a casino in the next six months. This will cost $3.5m dollars – money it already claims to have in cash.

While these developments are potentially very exciting, investors should bear in mind that the pre-revenue AMZ lost £1.58m (2007: £2.4m) for the year to last May, although year-end net cash increased to £3.4m (2007: £1.56m).

Those brave enough to risk a long-term punt could hit the jackpot. But short term the shares, which have fallen throughout 2008, could struggle to find fans in risk-averse market climes. Avoid.

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AMZ Holdings	AIM	£13.75m	85.50p	0.00p
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