US SECURITIES & EXCHANGE COMMISSION
                      WASHINGTON, DC 20549
                            FORM 10-QSB

(X) Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the
quarterly period ended September 30, 2003.

( ) Transition report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the
transition period from                 to               .

                Commission File Number 0-24185

                CENTRAL AMERICAN EQUITIES CORP.

Florida                                          65-0636168
(State or other jurisdiction of       (IRS Employer Identification Number)
incorporated or organization)

       Hotel Alta, Alto de las Palomas
          Santa Ana, Costa Rica
Mailing Address: Interlink 964, PO Box 02-5635, Miami, FL   33102
      (Address of Principal Executive Offices)

               +011 (506) 282-4160
 (Registrant's telephone number, including area code)

Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:

Class A Common Stock, $.001 Par Value

Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the preceding
twelve (12) months  (or for such shorter period that registrant
was required to file such reports), and (2) has been subject to such
filing requirements for the past
ninety (90)  days.  YES (  )  NO ( x  ).

Note:  The Company has not yet filed first quarter 10-Q
report required in 2004, nor the 10-KSB
required for year 2003.

Number of shares outstanding on September 30, 2003 of each
of the classes of common equity:

15,739,268 Shares Class A Common Stock, $.001 par value
(Number of shares outstanding of each of the Registrant's
classes of common stock.)

1,000,000 Shares Class A Preferred Stock, $.001 par value
(Number of shares outstanding of each of the Registrant's
classes of preferred stock.)

Note that the number of shares outstanding as of May 1, 2004
is as follows:

19,789,268 shares of Class A Common Stock, $001 par value and
1,000,000 shares of Class A Preferred Stock.

Transitional Small Business disclosure format (check one)
YES [ X ]  NO [   ]

DOCUMENTS INCORPORATED BY REFERENCE
Annual Report on Form 10-KSB of Registrant for the year
ended December 31, 1998, 1999, 2000,
2001, 2002



PART I: FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION

Central American Equities Corp. (the "Company" or "CAE")
is a US hospitality company,
based in Santa Ana, Costa Rica and incorporated in the
State of Florida.  The Company owns and
operates hotels, restaurants, and real property
 in Costa Rica.   All CAE activities are related to the
Company's hotels in Costa Rica, and, as such, are
 reported as one operating segment (per FASB
Statement No. 131).  Financial statements follow.


CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
Consolidated Balance Sheet


Assets

                                September 30, 2003   December 31, 2002

Current assets
Cash and cash equivalents              $92,328          $25,040
Account receivable                      55,020           52,856
Account receivable from sale of asset        0            5,790
Inventory                               24,874           20,314
Prepaid expenses                         1,739            7,537
                                       173,961          111,537
Buildings and equipment,
 Net of depreciation                 6,327,929        6,465,398

Other assets
	Other Assets                            0                0

Total assets                          6,501,890        6,576,935

	Liability and Stockholders' Equity

Current liabilities
	Accounts payable	             137,755          244,404
Accrued expenses                       250,663          299,181
                                       388,418          543,585
Other liabilities
Long term debt                         414,240          481,677
Due to officers                        382,469          138,700
                                       796,709          620,377


Stockholders' equity
 Common stock - $.001 par value;
  20,000,000 authorized, 15,739,268
  issued and outstanding                 15,739           15,439
 Preferred stock - $.001 par value;
  1,000,000 shares authorized,
  1,000,000 issued and outstanding        1,000                0
	Additional paid-in capital      10,248,616       10,163,116
	Accumulated other comprehensive
  Income                                108,887           76,866
 	Retained deficit                (5,057,478)      (4,842,448)
                                      5,316,764        5,412,973
Total liabilities & stockholders'
  Equity                              6,501,890        6,576,935


            See Notes to Consolidated Financial Statements


             CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                   Consolidated Statement of Operations

                             For the 3-month         For the 9-month
                               period ended           period ended
                               September 30,           September 30,

                            2002            2003           2002        2003


Revenues                  $ 182,418     $   236,461      751,314      765,589

Cost of Services             57,015         127,571      228,476      264,431

Gross Profit                125,403         108,890      522,838      501,158

Operations
 General & Administrative   223,419         115,599      618,150      516,487
 Depreciation                38,545          45,823      111,273      137,469

                            261,964         161,422      729,423      653,956

Other Expense
  Interest Expense           13,680          14,473       57,505       62,231
  Forgiveness of Debt       (49,660)              0      (49,660)           0
  Loss on Foreign Exchange      513               0          581            0

                            (35,467)         14,473        8,427       62,231

Income taxes                      0               0            0            0

NET INCOME (Loss)        $ (101,094)  $     (67,006)    (215,013)    (215,030)

Weighted Average share of
 Common Stock
 Outstanding             14,739,268      15,739,268   14,739,268   15,739,268
 Gain (Loss) per
 Common Share         $     (0.01)    $     (0.01)    $   (0.01)     $  (0.01)




See Notes to Consolidated Financial Statements


        CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
              Statements of Cash Flow
        For the Nine Months Ended September 30,

                                             2002           2003

Cash flows from operating activities:    $    11,649   $ (215,030)

Net Income
Adjustments to reconcile net loss to
net cash provided by operating activities:
  Unrealized Loss on Foreign Exchange              0        32,021
  Depreciation and amortization               36,364       137,469

Decrease (increase) in:
  Accounts receivable                         (4,316)        3,626
  Inventory                                    1,219        (4,561)
  Prepaid expense and other                    2,472          5,798

(Increase) decrease in:
  Accounts payable                           (18,000)      (106,649)
  Accrued expenses                            (6,052)       (48,518)

Net cash used in operating activities:        23,336       (195,844)

Cash flows from investing activities:
  Capital expenditures                             0              0

Net cash used in investing activities              0              0

Cash flows from sale of equity:
  Cash flows from sale of equity                   0         86,800

Net cash used from sale of equity                  0         86,000

Cash flows from financing activities:
  Proceeds from loans                         (9,000)       (67,437)
  Proceeds from loans from officers           (1,000)       243,769

Net cash provided by financing activities:   (10,000)       176,332

Net increase (decrease) in cash               13,336         67,288

Cash - beginning of period                    28,495       25,040

Cash - end of period                          41,831       92,328

Supplemental Disclosures of cash flow information:

Interest                                      43,825        62,231
Income Taxes                                      0              0

See Notes to Consolidated Financial Statements

           CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
              Notes to Consolidated Financial Statements

Note 1   Summary of Accounting Policies

Nature of Business
Central American Equities Corp. and Subsidiaries (the "Company")
was incorporated under the laws
of the State of Florida on January 23, 1996.  The Company
is in the business of owning and
operating hotels and real property in Costa Rica.

In December of 1996, the Company entered into an agreement
for the exchange of common stock
("Exchange Agreement") with Cal Tico, L.P., Ecolodge Partners,
L.P. and Marine Lodge Partners,
L.P. (Partnership).  Pursuant to the exchange agreement,
the company issued 7,756,885 and
3,099,392 shares of common stock to limited partners and
the general partners, respectively, of the
partnerships.  In exchange for the shares, the partnership
transferred all of their interests (i.e. 100%
of the outstanding common stock) in the following Costa Rican
corporations:  Hoteleria Cal Tico,
S.A.; Bandirma, S.A.; Sociedad Protectora De La
Fuana y Flora Marintima De Mal Pais, S.F.;
Ecoprojecto San Luis, S.A. and Confluencia, S.A.

Cal Tico, L.P. was a California limited partnership
that was formed in July 1992 to raise $2 million
to purchase the land and construct Hotel Alta.  Cal
Tico, L.P. owns 100% of the stock in Hoteleria
Cal Tico, S.A., a Costa Rican corporation.  Hoteleria
Cal Tico, S.A, owns the land and buildings at
Hotel Alta.

Ecolodge Partners, L.P. was formed in July 1993 to raise
a total of $1.3 million in a private
placement offering to purchase the land and construct the
Ecolodge San Luis and Biological
Station.  Ecolodge Partners was a California limited
partnership that owned all of the stock in
Ecoproyecto San Luis, S.A. and Confluencia San Luis, S.A.,
the two Costa Rican companies that own
the Ecolodge land and buildings.

Marine Lodge Partners L.P. was formed in March 1995 to raise
$1 million for the purchase and
renovation of the Sunset Reef.  MarineLodge Partners was a

California limited partnership.  Marine
Lodge Partners owned 100% of the stock in Bandirma, S.A.
Bandirma owns: a) 90% of the Sociedad
Protectora De La Fauna y Flora Maritima de Mal Pais S.A.,
a Costa Rican corporation which owns
the land and buildings at Sunset Reef, and b) 100% of
Muxia, S.A. which owns 100% of the land
and buildings at Playa Carmen.

Basis of Consolidation
The consolidated financial statements include the
consolidated accounts of Central American
Equities Corp. and its subsidiaries. Hoteleria Cal
Tico, S.A., Bandirma, S.A., Sociedad Protectora De
La Fuana y Flora Marintima De Mal Pais, S.F.,
Ecoprojecto San Luis, S.A. and Confluencia, S.A. are
held 100% by the Company.  All intercompany transactions
and accounts have been eliminated in
consolidation.

Cash and Cash Equivalents
For purposes of the statement of cash flows all certificates
of deposits with maturities of 90 days or
less, were deemed to be cash equivalents.

Property and Equipment
Property and equipment are recorded at cost less
accumulated depreciation. Depreciation is
computed provided using the straight-line method over
the estimated useful lives of five for
equipment, seven years for furniture and fixtures and
forty years for buildings and improvements.

Repairs and maintenance costs are expensed as incurred
while additions and betterments are
capitalized.  The cost and related accumulated depreciation
of assets sold or retired are eliminated
from the accounts and any gain or losses are reflected
in earnings.

Estimates
Preparation of financial statements in conformity with
generally accepted accounting principles
requires management to make estimates and assumptions
that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and
liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual
results could differ from those estimates.

Adoption of Statement of Accounting Standard No. 123
In 1997, the Company adopted Statement of Financial
Accounting Standards No. 123, "Accounting
for Stock-Based Compensation" ("SFAS 123").  SFAS 123
 encourages, but does not require
companies to record at fair value compensation cost
for stock-based compensation plans.  The
Company has chosen to account for stock-based compensation
using the intrinsic value method
prescribed in Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to
Employees" and related interpretations. Accordingly, compensation
cost for stock options is
measured as the excess, if any, of the quoted market price of the
Company's stock at the date of the
grant over the amount an employee must pay to acquire the stock.
The difference between the fair
value method of SFAS-123 and APB 25 is immaterial.

Adoption of Statement of Accounting Standard No. 128
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial
Accounting      Standards No. 128, "Earnings per Share" (SFAS 128).
SFAS 128 changes the
standards for computing and presenting earnings per share (EPS) and
supersedes Accounting
Principles Board Opinion No. 15, "Earnings per Share." SFAS 128
replaces the presentation of
primary EPS with a presentation of basic EPS. It also requires dual
presentation of basic and diluted
EPS on the face of the income statement for all entities with complex
capital structures and requires
a reconciliation of the numerator and denominator of the basic EPS
computation to the numerator
and denominator of the diluted EPS computation. SFAS 128 is
effective for financial statements
issued for periods ending after December 15, 1997, including
interim periods. This Statement
requires restatement of all prior period EPS data presented.

As it relates to the Company, the principal differences
between the provisions of SFAS 128 and
previous authoritative pronouncements are the exclusion
of common stock equivalents in the
determination of Basic Earnings Per Share and the market
price at which common stock equivalents
are calculated in the determination of Diluted Earnings
Per Share.

Basic earnings per common share is computed using the
weighted average number of shares of
common stock outstanding for the period. Diluted earnings
per common share is computed using
the weighted average number of shares of common stock and
dilutive common equivalent shares
related to stock options and warrants outstanding during
the period.

The adoption of SFAS 128 had no effect on previously
reported loss per share amounts for the year
ended December 31, 1997. For the years ended December 31, 1999
and 1998, primary loss per
share was the same as basic loss per share and fully diluted loss
per share was the same as diluted loss
per share. A net loss was reported in 1998 and 1997, and
accordingly, in those years the
denominator was equal to the weighted average
outstanding shares with no consideration for
outstanding options and warrants to purchase shares of
the Company's common stock, because to do
so would have been anti-dilutive. Stock options for the
purchase of 357,500 shares at December 31,
1998 were not included in loss per share calculations,
because to do so would have been
anti-dilutive.

Revenue Recognition
The Company records revenue at the point of service and
maintains its corporate records for both
financial statement and tax return purposes on the accrual
method of accounting.

Foreign Exchange
Assets and liabilities of the Company, which are denominated
in foreign currencies, are translated at
exchange rates prevailing at the balance sheet date.
Non-monetary assets and liabilities are
translated at historical rates.  Revenues and expenses are
translated at average rates throughout the
year.  The unrealized translation gains and loses are
accumulated in a separate component of
stockholders' equity  Translation exchange gains and losses
are reflected in net earnings.

Fair Value of Financial Instruments
The carrying amount of the Company's financial instruments,
which principally include cash, note
receivable, accounts payable and accrued expenses, approximates
fair value due to the relatively
short maturity of such instruments.

The fair value of the Company's debt instruments is based on the
amount of future cash flows
associated with each instrument discounted using the Company's
borrowing rate.  At December 31,
2002 and 2001, respectively, the carrying value of all
financial instruments was not materially
different from fair value.

Income Taxes
The Company has net operating loss carryovers of approximately
$4.8 million as of December 31,
2002, expiring in the years 2012 through 2022.  However, based
upon present Internal Revenue
regulations governing the utilization of net operating loss
carryovers where the corporation has
issued substantial additional stock, most of this loss carryover
may not be available to the Company.

The Company adopted Statement of Financial Accounting Standards
(SFAS) No. 109, Accounting
for Income Taxes, effective July 1993.  SFAS No.109 requires the
establishment of a deferred tax
asset for all deductible temporary differences and operating
oss carryforwards.  Because of the
uncertainties discussed in Note 2, however, any deferred tax
asset established for utilization of the
Company's tax loss carryforwards would correspondingly require
a valuation allowance of the same
amount pursuant to SFAS No. 109.  Accordingly, no
deferred tax asset is reflected in these financial
statements.

Recent Accounting Pronouncements

In November 2002, the FASB issued Interpretation No. 45,
"Guarantor's Accounting and Disclosure
Requirements for Guarantees, including Indirect Guarantees
of Indebtedness of Others"
("Interpretation No. 45"). Interpretation No. 45 elaborates
on the existing disclosure requirements
for most guarantees, including loan guarantees such as
standby letters of credit. It also clarifies that
at the time a company issues a guarantee, the company
must recognize an initial liability for the fair
market value of the obligations it assumes under that
guarantee and must disclose that information
in its interim and annual financial statements. The
initial recognition and measurement provisions of
Interpretation No. 45 apply on a prospective basis to
guarantees issued or modified after December
31, 2002. Interpretation No. 45 did not have an effect
on the financial statements.

In January 2003, the FASB issued Interpretation No. 46,
"Consolidation of Variable Interest Entities"
("Interpretation No. 46"), that clarifies the application
of Accounting Research Bulletin No. 51,
"Consolidated Financial Statements," to certain entities
in which equity investors do not have the
characteristics of a controlling financial interest or do
not have sufficient equity at risk for the entity
to finance its activities without additional subordinated
financial support from other parties.
Interpretation No. 46 is applicable immediately for variable
interest entities created after January 31,
2003. For variable interest entities created prior to
January 31, 2003, the provisions of Interpretation
No. 46 are applicable no later than July 1, 2003. Interpretation
No. 46 did not have an effect on the
financial statements.

In December 2002, the FASB issued SFAS No. 148, "Accounting for
Stock-Based Compensation --
Transition and Disclosure, an amendment of FASB Statement No.
123" ("SFAS 148"). This
Statement amends SFAS 123 to provide alternative methods of
transition for a voluntary change to
the fair value method of accounting for stock-based employee
compensation. In addition, SFAS 148
amends the disclosure requirements of SFAS 123 to require
prominent disclosures in both annual
and interim financial statements. Certain of the disclosure
modifications are required for fiscal years
ending after December 15, 2002 and are included in the notes
to these consolidated financial
statements.

Statement of Financial Accounting Standards SFAS No. 149,
"Amendment of Statement 133 on
Derivative Instruments and Hedging Activities", SFAS No. 150,
"Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity",
were recently issued. SFAS No, 149,
and 150 have no current applicability to the Company or their effect
on the financial statements
would not have been significant.


Note 2    Federal Income Tax
At December 31, 2002 and 2001 deferred taxes consisted of the following:

                                          2003             2002
Deferred tax assets,
  Net operating loss carry-forward  $  1,564,000      $ 1,430,700
Less valuation allowance             ( 1,564,000)     ( 1,430,700)
                                        --------    --------------
   Net deferred taxes              $       -0-       $     -0-
                                           ========    ========



The valuation allowance offsets the net deferred tax
asset for which there is no assurance of
recovery. The change in the valuation allowance for the
years ended December 31, 2002 and 2001
totaled $133,300 and $242,200, respectively. The net operating
loss carry- forward expires in year
2022. The valuation allowance will be evaluated at the end of
each year, considering positive and
negative evidence about whether the deferred tax asset will be
realized.

At that time, the allowance will either be increased
or reduced; reduction could result in the complete
elimination of the allowance if positive evidence
indicates that the value of the deferred tax assets is
no longer impaired and the allowance is no longer required.

Note 3   Going Concern

The Company incurred a net loss of approximately
$392,000 during the year ended December 31,
2002 that raised substantial doubt about the entity's
ability to continue as a going concern.

The Company has received additional financing through
the sale of a non-performing asset,
continues to control expenses, and evaluates the ongoing
performance of the Company's assets.
The ability of the Company to continue as a going concern
is dependent on the success of
application and techniques.  The financial statements do
not include any adjustments that might be
necessary if the Company is unable to continue as a going
concern.

Note 4   Property and Equipment

As of September 30, 2003 plant and equipment consisted of the following:

Land    			        $  840,075
Buildings			         6,042,617
Machinery and equipment	      116,036
Furniture and fixtures          286,635
Computer equipment               73,693
                              7,359,056

Less accumulated depreciation	 1,031,084

                                              $6,327,972

Depreciation expense in the amount of $166,377 and $45,823
has been recorded for the year ended
December 31, 2002 and the quarter ended September 30, 2003,
respectively.

Note 5   Notes Payable

On September 30, 2003, the Company had $365,940
outstanding against a $500,000 line of credit
with Banco BCT, which bears interest at the prime rate
plus 3%.   Principal payments were to begin
on January 10, 2000 in monthly installments of $38,462;
however, payments were renegotiated.
During 2001 and 2002, interest only was paid on the last
day of each month.  In February 2002, the
Company restructured the loan.  The new terms include a
loan term of 70 months; an annual interest
rate of prime plus 3.75%, and monthly principal payments
that vary with the high and low
occupancy periods of Hotel Alta.  Monthly principal
payments in year one will vary from $3,000 to
$9,000.  The funds advanced under this line of credit
were utilized to supplement cash flow for
operating expenses and construction costs.  The note is
collateralized by property of the Company.

Included in notes payable at June 30, 2003 is a note
payable to shareholder, dated July 21, 2000, of
$48,300.  The note payable bears interest at 21% and
is due July 22, 2002.

Note 6  Due to Officers

Notes payable as of September 30, 2003 are as follows:

Note payable to shareholder dated November 30, 2000 with interest at 5% with
  no set terms for prepayment	    					   $130,200
Note payable to shareholder dated July 15, 2000 with interest at 5% with
  no set terms for prepayment	 						 6,000
Note payable to shareholder dated September 15, 2003 with interest at 10%
  with no set terms for prepayment	    					40,000
Note payable to officer from September 15, 1999 with interest at 5% with
  no set terms for prepayment	 					    206,269


Total Due to Officers 	    						       $382,469

Note 7  Commitments and Contingencies

The Company has a month-to-month lease for 1 acre of property.
Minimum rentals in the year
ending December 31, 2003 are $18,000

Note 8 Business Combination

On December 6, 1996 the Company entered into an agreement
for the exchange of common stock
("Exchange  Agreement") with Cal Tico, L.P., Ecolodge
Partners, L.P. and Marine Lodge Partners,
L.P. ("Partnership").  Pursuant to the exchange agreement,
the Company issued 7,756,885 and
3,099,392 shares of common stock to the limited partners
and the general partners, respectively, of
the partnerships.  In exchange for the shares, the
partnership transferred all of their interests (i.e.
100% of the outstanding common stock) in the following
Costa  Rican corporations: Hotelera Cal
Tico, S.A.; Bandirma, S.A.; Sociedad Protectora De La
Fuana y Flora Marintima  De Mal Pais, S.F.;
Ecoprojecto San Luis, S.A. and Confluencia, S.A. The
acquisition has been accounted for as a
purchase transaction and, accordingly, the fair value
of the Company's stock that was issued was
allocated to assets and liabilities based on the
estimated fair value as of the acquisition date.

Note 9  Subsequent Events

Included as a liability on the balance sheet is
an accrued expenses in the amount of approximately
$250,000 for non-payment of sales taxes for Hotel
Alta.   These amounts have grown over several
years.  This amount reflects the amount past due not
ncluding penalties or interest.

Penalties and interest were not included as the
government had an amnesty program that forgave
penalties and interest on all past taxes paid by
April 30, 2003. The Company planned to have the
cash available to pay past taxes by selling a beach
property called Tropicana before April 30.
Instead, through negotiations with the government the
Company offered part of the property to the
government in lieu of payment.  Before April 30 the
government accepted the property and began
an appraisal to see how much of the past taxes it would
cover.  In August 2003, the government
reversed course on the offer to accept the property.  They
demanded full payment of the back taxes
including penalties and interest. As of the May 2004, the
Company had paid down the tax liability
by about $80,000, but was disputing the interest and penalties.



ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS

Central American Equities Corp. (the "Company" or "CAE")
is a US hospitality company, based
in Santa Ana, Costa Rica and incorporated in the State of
Florida on January 23, 1996. The
Company specializes in providing high-quality food and
lodging in unique natural settings in
Costa Rica.  The Company is in the business of owning and
operating hotels and restaurants and
real property in Costa Rica.

As of September 30, 2003, CAE owned Hotel Alta in
Santa Ana (a suburb of the capital city of
San Jose), and Sunset Reef (on the Pacific Ocean in
Mal Pais near the protected Cabo Blanco
Reserve).  CAE also owns and operates La Luz Restaurant
(located in Hotel Alta), Restaurant
Tropicana (on the beach at Playa Carmen near Sunset Reef),
and ATP-Costa Rica  (a full-service
reservation, travel planning and in-bound tour operation
based in Costa Rica).

The first year of full operation of the Company's hotels
was 1998.  All Company owned facilities,
except for Restaurant Tropicana, were opened and operating
by the beginning of 1998.  Beginning
in late 2001, Tropicana Restaurant was operated by the
Company (in past years it had been rented
on a monthly basis).  On June 30, 2003, the Company had
approximately 60 full-time, part-time
and contract employees.

The following is management's discussion and analysis of
significant factors which have affected
the Company's financial position and operations during the
three month period ended September
30, 2003.

Results of Operations

Comparison of Operations for the 3-Month Periods Ended
September 30, 2003 and 2002

As has been reported over the last 12 to 15 months, the
Company has continued to be challenged
by diminished travel demand brought on by the terrorist
attacks of September 11 and the increased
supply of hotel rooms and restaurants.  During the three

month period ended September 30, 2003,
occupancy at Hotel Alta increased by about 27% from the
same period in 2002; occupancy at
Sunset Reef remained about the same.  In comparing the
same periods, Company revenues
increased by about 29% to about $236,500 from
about $182,400.

During the three-month period September 30, 2003,
total operational expenses (cost of services
and general and administrative costs) were about
$243,000.  This represents a decline of
approximately $37,000 or more than 13% from the same
period in 2002.

During the three-month period ended September 30, 2003
the Company lost approximately
$7,000 before depreciation of about $46,000 and interest
costs of about $14,500.  The net loss,
including depreciation and interest, was about $67,000.

Note that during September 2004 a debt due to the CEO of
the Company ($206,269 related to past
salary) was shifted from Accounts Payable to Debt due to officers.

Liquidity and Capital Resources

During the first nine months of 2003, the Company
recorded negative net cash flow.  In 2002,
Company operations also resulted in losses. The Company
has limited, albeit improving, cash
liquidity and capital resources.  The Company plans to
hold sufficient cash from the sale of assets
in reserve to protect against cash flow needs during the
remainder of 2003.



PART II: OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Actions in Costa Rican Labor Court

At this time there are actions against Central American
 Equities in the Costa Rican Labor Court
that have been brought by former employees who had been
 dismissed by the Company due to
poor performance or insubordination.  These employees
dispute the reason for their dismissal and,
as such, claim they are entitled to additional monetary
 compensation.  The Company considers
these actions to be routine litigation that is incidental
to the business (as defined under Reg.
228.103). It is anticipated that any contingent liability
stemming from these claims would be
immaterial to the Company.  See Item 5 for potential litigation
subsequent to the due date for this
filing.

Potential Legal Proceeding and Liability September 30, 2003

As of September 2003, Hotel Alta owed Tributacion (the Costa
Rican taxing authority)
approximately $210,000 in unpaid sales taxes.  These taxes have
been listed on the balance sheet
as an accrued expense.  The Costa Rica government offered to all
companies in Costa Rica
amnesty from interest and penalties for back taxes paid by
April 30, 2003.  Prior to April 30, 2003,
CAE, unable to pay these taxes in cash, proposed that the
debt be resolved with the exchange of
property worth an equivalent value  (part of the parcel in
Playa Carmen where Restaurante
Tropicana is located).  At the time, Tributacion appeared to
accept the offer.  However, in August
2003, Tributacion declined to accept the offer.

As of May 2004 the Company had filed an administrative
complaint against Tributacion to obtain
its full rights under the amnesty law.   If this action
is unsuccessful the Company may bring suit
against the Costa Rican sales tax authority for not
accepting the offer of property in exchange for
an outstanding tax liability.  The refusal of the offer
denied the opportunity for the Company to
successfully meet the tax amnesty deadline.   Believing
it has been denied due process and equal
treatment under Costa Rican law, management currently would
pursue the case vigorously if a
negotiated or administrative settlement is not achieved.  It
is difficult to evaluate the likelihood of
an unfavorable outcome of such a case but we estimate it to
be at or below 50%.  If an unfavorable
outcome results, the Company could be liable for interest and
penalties of approximately
$150,000.  The tax liability as of September 30, 2003 (less
potential interest and penalties) has
been accounted for in the financial statements of this filing.


ITEM 2. CHANGES IN SECURITIES

During the third and fourth quarter of 2003, the Company
raised cash by selling securities that
were not registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any
state securities laws.  The sale of the securities was
intended to be exempt from registration under
the Securities Act, by virtue of Section 4(2) of Regulation D.

The Company successfully sold 3,360,000 shares of Common Stock
and 1 million shares of
Class "A" convertible preferred stock.  In total,
the Company raised $178,200 net of costs from
the sale of stock.  The average price per share was $0.05.
The shares were sold entirely to current
Company stockholders.

The proceeds of these sales, less any deductions
for transactional fees including, but not limited
to, commissions, accounting fees, legal fees, and printing costs
was used for debt reduction
(including reduction of a tax liability) and working capital.
The Company paid a director of the
Company (Talley) $19,800 (10% of gross proceeds) in commission
on the sale of the stock.

The Class "A" convertible preferred stock has the following
provisions: a) the option to transfer
the shares into common stock on a one-for-one basis, b) the
same voting rights as common stock,
and c) the same liquidation preferences as common stock.

During December 2003, the Company also exchanged 240,000
shares of Common Stock for
$12,000 debt owed to a director (Rosenmiller).  The debt
was exchanged for shares at a price of
$0.05 per share.  Rosenmiller had originally loaned the
Company $40,000 in September 2003.

The Company has also issued as compensation (subsequent to
the due date of this report)
additional shares of Common Stock to Michael Caggiano, the
Company President and CEO.  In
the fourth quarter of 2003 the Company issued an additional
700,000 shares of Common Stock
to Caggiano.  Recognizing that significant past salary was
due and payable, the board
collateralized full compensation due with a company asset:
the Playa Carmen (Tropicana)
property in Mal Pais.   In the first quarter of 2004 the
Company granted  50,000 shares of
Common Stock to an employee of the Company.

As of April 30, 2004 the Company had 19,789,268 shares
of Common Stock issued and
outstanding and one million shares of Preferred Stock
issued and outstanding.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company did not default upon any securities of any
kind during the three-month period that
ended on September 30, 2003.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company submitted no matter to a vote of its security holders
during the three-month period ended September 30, 2003.

ITEM 5. OTHER INFORMATION

Changes in Registrant's Certifying Accountant

At a board of directors meeting held on August 28, 2003
of which a quorum was present, the
Board of Directors of Central American Equities accepted
the resignation of Pinkham and
Pinkham as its Certified Accountant for the fiscal years
ended December 31, 1999, December 31,
2000 and December 31, 2001.

During the previous three years, Pinkham and Pinkham was the
principal accountant for Central
American Equities Corp.  At no time did Pinkham and Pinkham's
financial statements contain an
adverse opinion or disclaimer of opinion or was modified as to
uncertainty, audit scope, or
accounting principles.  Nor were there any disagreements with
Pinkham and Pinkham on any
matter of accounting principles or practices, financial statement
 disclosure, or auditing scope or
procedure.

On August 28, 2003, Central American Equities engaged Clyde Bailey, P.C.
Certified Public Accountants as the principal accountant for the
Company.  Central American Equities has
authorized Pinkham and Pinkham to respond fully to the inquiries
of the successor accountant.

ITEM 6.  EXHIBITS AND REPORTS

Exhibits and reports filed herewith: none.


VERIFICATION SIGNATURES

In accordance with Section 12 of the Securities and
Exchange Act of 1934, the registrant caused
this registration to be signed on its behalf by the
undersigned, thereunto duly authorized.


CENTRAL AMERICAN EQUITIES CORP.




BY: Michael N. Caggiano, President/CEO

MICHAEL N. CAGGIANO, President/CEO


CENTRAL AMERICAN EQUITIES CORP.




BY: Richard Wm. Talley, Director

RICHARD WM. TALLEY, DIRECTOR




CENTRAL AMERICAN EQUITIES CORP.




BY: P. James Voloshin, Director

P. James Voloshin, DIRECTOR



SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS

 I, Michael Caggiano, President and Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Central
American Equities Corporation;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or
omit to state a material fact necessary to make the statements made,
in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this
report;

3. Based on my knowledge, the financial statements, and other financial
 information included in this report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this report;

4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and
procedures to be designed under our supervision, to
ensure that material information relating to the
registrant, including its consolidated subsidiaries,
is made known to us by others within those
entities, particularly during the period in which this
report is being prepared;

(b) Designed such internal control over financial reporting,
or caused such internal control over
financial reporting to be designed under our supervision, to
provide reasonable assurance
regarding the reliability of financial reporting and the preparation
of financial statements for
external purposes in accordance with generally accepted accounting
principles;

(c) Evaluated the effectiveness of the registrant's
disclosure controls and procedures and presented
in this report our conclusions about the effectiveness
of the disclosure controls and procedures;
and

(d) Disclosed in the report any change in the
registrant's internal control over financial reporting
that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter
in the case of an annual report) that has materially
affected, or is reasonably likely to materially
affect, the registrant's internal control over
financial reporting;

5.  I have disclosed, based on our most recent
evaluation of internal control over financial
reporting, to the registrant's auditors and the audit
committee of registrant's board of directors (or
persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses
in the design or operation of internal
control over financial reporting which are reasonably
likely to adversely affect the registrant's
ability to record, process, summarize and report financial
information; and

(b) Any fraud, whether or not material, that involves management
or other employees who have a
significant role in the registrant's internal control over
financial reporting.


/s/ Michael N. Caggiano
----------------------------------------------
Michael N. Caggiano
President and Chief Executive Officer
May 7, 2004



SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS

I Michael N. Caggiano, President and Chief Executive
Officer of Central American Equities
Corporation, hereby certify that:

1. The annual report of the registrant on Form 10-Q for
the quarter ended June 30, 2003 fully
complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934;
and

2. The information contained in the annual report fairly
presents, in all material respects, the
financial condition and results of operations of the
registrant as of the dates and for the periods
expressed in the quarterly report.

/s/ Michael N. Caggiano
----------------------------------------------
Name: Michael N. Caggiano
Title: President and Chief Executive Officer
Date:   May 7, 2004
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