This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

September 2, 2011 - Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada.

Just 3 years ago, PNK showed a loss of $2.50 a share. The stock went form $36.20 in 2007 to $2.60 at the end of 2008. The recession hit its casinos and racetrack hard. But the stock bounced back. Conincidentally, so did the earnings. Or should that be the other way around?

Earnings were still negative in 2009: - 39 cents a share. Last year, they went positive to 2 cents. This year, 15 analysts have a consensus opinion that they'll be 52 cents and see 54 cents for 2012. The range from those analyst is from 44 cents to 66 cents for this year and 29 cents to 80 cents for '12. Big range. So much depends on the economy and how lucky customers feel (about having a job and their prospects of keeping it).

Second quarter results were strong with revenues up 9% to $299.1 million. Earnings surprised analysts, coming in at 17 cents, a full dime above expectations (a 142.9% positive surprise). The quarter before the surprise was 100% (10 cents actual vs 5 cents forecast). The 2 previous quarters delivered upside surprises as well: 242.9% in September of last year, then 87.5% in the fourth quarter. Definitely a trend here. Two of its casinos in St. Louis accounted for much of the improvement. Management is also focused on better operational efficiency and cost cutting so margins are widening.

The company is looking internationally to broaden its market presence. It recently bought a 26% equity interest in Asian Coast Development, owner and developer of the Ho Tram Strip beachfront complex of resorts and residential developments in southern Vietnam at a cost of $95 million. Nearby, MGM Grand is building a new casino that should draw more customers to the area.

Knowing the history of this stock's price is important. In 2003, when earnings were negative 40 cents a share, the stock reached a bottom of $3.90. From there it went on a 3 year ride, reaching its peak in late 2006 at $37.40. After that it was all downhill until late 2008, bottoming at $2.60. If you own this stock, you have to keep your seatbelt fastened.

One investor who likes the stock is the CEO, Anthony Sanfilippo. Since August 10, he bought 60,000 shares in three separate trades for about $700,000. The buys were between $11.44 and $11.77. But what could he know?

Important numbers:
- Price to Book: 1.69
- Price to sales: .74
- Operating Margin (last 12 months): 10.19%
- Profit Margin (last 12 months): - 2.3%
- Return on Equity (last 12 months): 2.03%
- Return on Assets (last 12 months): 3.84%
- Revenues (last 12 months): $1.15 billion
- Total cash: $142.20 million
- Cash per share: $2.29
-Total Debt: $1.19 billion
- Total Debt to Equity: 236.36%
- Current ratio: 1.42
- Book Value per share: $8.11
- Beta: 1.76
- 52 week change: 32.56%
- Total Shares Outstanding: 62.04 million
- Float: 60.95 million
- Insiders own 1.42%
- Institutions own 98.60%
- There is no dividend.

Aggressive investors bullish on the economy should like this stock. If the economy gets a boost from a new jobs bill or other economic stimulus, expect PNK to reap some of the benefit.