August 22, 2006

SpeculatingStocks.com Stock Pick: VCG Holding Corporation (PTT changed symbol to VCGH)

Stock Price: $1.69 (long-term strong buy)

VCG Holding Corp. is an owner, operator and consolidator of adult nightclubs throughout the United States. The Company currently owns six adult nightclubs, one upscale dance lounge and operates seven other adult nightclubs under management agreements. The owned and managed clubs are located in Indianapolis, St. Louis, Denver, Phoenix, and Louisville.

PTT went public in June of 2003. Today, PTT traded the most shares in its history, 222,700 shares, over double the highest previous one-day amount of 104,500.

PTT clearly operates in a space considered vice entertainment. We doubt many vice stocks trade at such a low market cap compared to sales and profits.

PTT reported second quarter results last Tuesday. Q2 Net income came in at $517,498 or $0.06 per share compared to net income of $128,326, or $0.02 per share for the same quarter last year. Total revenue for the first six months of 2006 was $8.5 million. PTT is trading at a market cap of only $14.67 million.

The company operates on an aggressive strategy to acquire two nightclubs per year within existing markets and improve same-store growth while increasing profitability.

There are only 3.29 million shares in the PTT float.

PTT can move quickly in the short-term and deserves to be trading at a higher valuation in the long-term.

SpeculatingStocks.com Target Price: We expect PTT to reach $3.00 within the next 2 - 4 months.