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, 2002.

( ) 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: POB 718/1260 Plaza Colonial, Escazu, Costa Rica)
                (Address of Principal Executive Offices)

                        +011 (506) 282-4160
            (Registrant 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  ).

The number of shares outstanding of each of the issuer classes of common equity:

            14,739,268 Shares Class A Common Stock, $.001 par value
(Shares outstanding of each of the Registrants classes of common stock.
See Item 5A for shares outstanding after the due date of this filing.)

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

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





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 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

                                         Sept.30, 2002      December 31, 2001
Assets
Current assets
 Cash and cash equivalents                $   103,039              $28,495
 Account receivable                            71,219               94,004
 Account receivable from sale of asset          5,790              755,000
 Inventory                                     22,019               18,920
 Prepaid expenses                               1,687                4,268
                                              203,755              900,687
Buildings and equipment,
 Net of depreciation	                      6,507,643             5,060,113

Other assets
  Long-Term Assets                                 0            1,261,007
  Other Assets                                     0                    0
                                                   0            1,261,007

Total assets                             $ 6,711,398         $  7,221,807

Liability and Stockholder Equity

Current liabilities
  Accounts payable                       $   226,255          $   308,682
  Accrued expenses                           290,631              320,281
                                             516,886              628,963
Other liabilities
 Long term debt                              490,676              529,676
 Due to officers                             138,700              293,135

                                             629,376              822,811
Stockholder equity
 Common stock  $.001 par value; 20,000,000
 Authorized, 14,739,268 issued and
 Outstanding                                  14,739               14,739
 Preferred stock - $.001 par value;
 1,000,000 shares authorized, 0 issued
 and outstanding	                               -                   -
 Additional paid-in capital               10,149,816           10,149,816
 Unrealized gain on foreign exchange          66,044               55,929
 Retained deficit                        (4,665,464)           (4,450,451)
                                           5,565,135            5,770,033

Total liabilities and stockholder equity  $6,711,398          $ 7,221,807

             See Notes to Consolidated Financial Statement

                 CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                     Consolidated Statements of Operations
                                      Unaudited
                                                             For the Three
                          For the Nine Months Ended           Months Ended
                                September 30,                 September 30,
                               2002         2001           2002          2001

Revenues                   $ 751,314    $  883,499     $  182,418     $ 216,637
Cost of services             228,476       444,953         57,015       137,115

Gross profit                 522,838       438,546        125,403        79,522

Operations

 General and admin.          618,150       477,286        223,419       136,921
 Depreciation                111,273       101,951         38,545        33,500
                             729,423       579,237        261,964       170,421

Other expense (income)
  Interest expense            57,505        92,131         13,680        30,418
  Forgiveness of debt        (49,660)            0        (49,660)            0
  Loss on foreign exchange       581             -            513             -
                               8,427        92,131        (35,467)       30,418

Total Expenses               966,326     1,116,161        283,512       337,954

Net Income (loss)           (215,013)     (232,662)      (101,094)     (121,317)

Net Loss per Share        $     (.01)      $  (.02)      $   (.01)     $   (.01)
Weighted average share of
common stock outstanding  14,739,268    14,739,268     14,739,268     14,739,268

               See Notes to Consolidated Financial Statements


               CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                          Statements of Cash Flow
               For the Nine Months Ended September 30,
                                Unaudited
                                                          2002         2001
Cash flows from operating activities:

Net Income (Loss)                                  $  (215,013)    $(232,662)

Adjustments to reconcile net loss to
net cash provided by operating activities:
  Unrealized Gain on Foreign Exchange                   10,115       (17,141)
  Depreciation and amortization                        111,273       101,792
Decrease (increase) in:
  Accounts receivable                                  771,994       (41,028)
  Inventory                                             (3,099)       (4,539)
  Prepaid expense and other                              2,581        13,924
(Decrease) increase in:
  Accounts payable                                     (82,427)       (6,744) *
  Accrued expense                                      (29,650)      183,082

Net cash provided by operating activities:             565,775        (3,317)

Cash flows from investing activities:

  Capital expenditures                                (297,797)            0

Net cash used in investing activities                 (297,797)            0

Cash flows from financing activities:

  Proceeds from loans                                  (38,999)            0
  Proceeds from loans from officers                   (154,435)            0
  Proceeds from issuance of common stock                     0             0
  Proceeds from additional paid-in capital                   0             0

Net cash provided by financing activities:            (193,434)

Net increase (decrease) in cash                         74,545        (1,653)

Cash  beginning of period                               28,495        15,901
Cash  end of period                              $     103,039        14,248


Note: (*) Cash flow changes for accounts payable in 2001 have been adjusted
for a non-cash change of $54,668. This amount was payable in salary owed
to the CEO of the Company and eliminated by the passage of title for
Sunset Reef.  See Notes to Consolidated Financial Statements.

Supplemental Disclosure of Cash Flow Information:

  Interest paid                                   $     57,505      $ 92,131

  Income taxes paid                        $                 -      $      -



              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 provides an integrated eco-vacation experience in Costa Rica,
and 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
sstock-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 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 Position 98-5
In April 1998, the American Institute of Certified Public Accountants issued
Statement of Position 98-5, Reporting the Costs of Start-Up Activities, which
requires that costs related to start-up activities be expensed as
incurred.  Prior to 1998, the Company capitalized its organization costs. The
Company adopted the provisions of the SOP in its financial statements for the
year ended December 31, 1998.  The effect of adoption of SOP 98-5
was to record a charge for the cumulative effect of an accounting change of
$235,605 ($.02 per share), to expense costs that had been previously
capitalized prior to 1998.

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
losswas 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 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 stockholder equity.  Translation exchange gains and losses are reflected
in net earnings.

Fair Value of Financial Instruments
The carrying amount of the Company 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 debt instruments is based on the amount of future
cash flows associated with each instrument discounted using the Company
borrowing rate.  At December 31, 2001 and 2000, 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 $4.45 million
As of December 31, 2001, expiring in the years 2012 through 2021. However,
Based upon present Internal Revenue regulations governing the utilization of
netoperating loss carryovers where the corporation has issued substantial
additionalstock, 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 loss carry-forwards.  Because of the uncertainties discussed in
Note 2, however, any deferred tax asset established for utilization of Company
tax loss carry-forwards 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.

Note 2.	Going Concern

The Company incurred a net loss of approximately $215,000 during
the first three quarters of the year ended December 31, 2002.

The Company has received additional financing through the sale of a
non-performing asset, continues to control expenses, and evaluates
the ongoing performance of Company 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 3.	Notes Payable

As of September 30, 2002, the Company had $442,376 outstanding
against a $500,000 line of credit with Banco BCT. The loan includes
a 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 vary
from $3,000 to $9,000. The note is collateralized by property of
the Company.

Included in notes payable at September 30, 2002 is a note payable
to shareholder,
dated July 21, 2000, of
$48,300.

Note 4.	Due to Officers

Notes payable as of September 30, 2002 are as follows:

Note payable to shareholder dated November 30, 2000 with no set
terms for prepayment                               $132,700
Note payable to shareholder dated July 15, 2000 with interest
at 6% with no set terms for prepayment                6,000

Total Due to Officers                              $138,700


Note 5.  Commitments

The Company has a month-to-month lease for 1 acre of property.
Minimum rentals in the year ending December 31, 2002 are $18,000

Note 6. 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 stock that was issued was allocated to assets and
liabilities based on the estimated fair value as of the acquisition
date.

Note 7.  Sale of Ecolodge San Luis & Biological Station

In December 2001, the Company sold the Ecolodge San Luis property,
all related assets, structures, and the hotel business and its
operating licenses to Corporacion Negro y Rojo de San Luis S.A., a
Costa Rica corporation owned by the University of Georgia.  Milton
and Diana Lieberman, former employees of Central American Equities,
represented the University of Georgia in this transaction.

Total consideration for the sale was $895,000 dollars including
previously received option payments.  The loss on the sale of the
asset (net price less net book value) was approximately $265,000.
The price is based upon the value of assets and the ongoing
business.  The Company initially financed the purchase of the asset
under the following terms: a) a 10% interest rate (13% if payments
are delinquent), b) a varying payment schedule to be completed
within one year of sale, and c) a $3,000 (increasing to $4,500)
monthly rental fee for the Ecolodge San Luis hotel business to be
paid until payments for the business were completed.  Initial
receipts from the purchase were used to pay all Ecolodge San Luis
liabilities including all severance-related payments to employees.
Following non-payment of principal in February 2002, in May 2002,
the Company renegotiated the sale with officials of the University
of Georgia Real Estate Foundation.  The Company forgave interest
and rental payments in exchange for immediate payment of all
outstanding principal.  The details on the transaction are as
follows:

Note receivable
     Sale price                    $    895,000
     Liquidation & liabilities           30,000
                                        865,000

     Cash payments received             110,000
                                   $    755,000

     Net sale price                $    865,000
     Legal and transfer                  20,000
                                   $    845,000

Net book value

     Land                          $    305,422
     Structures & equipment             927,815
     Accumulated depreciation          (122,871)

     Net book value                 $ 1,110,366

Net price

     Gross price                   $    895,000
     Cost of sale                        50,000
     Net price                          845,000

     Net book value                   1,110,366

     Loss on sale of asset         $   (265,366)


Note 8. Exercise of Option to Re-purchase Sunset Reef

On January 5, 2001, the title for Sunset Reef Marine Hotel had
passed to Rosenmiller and Caggiano because of the Companys
inability to pay debts to these officers.  At such date the
Company entered into an agreement with the option to purchase
Sunset Reef Marine Hotel for $271,000 (the amount of the debt less
interest).  Using funds available from the sale of Ecolodge San
Luis, in June 2002, the Company exercised its option and
repurchased Sunset Reef.



ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS

The following is management's discussion and analysis of
significant factors that affected the Company financial position and
 operations during the nine month period ended September 30, 2002.

Overview

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
Costa Rica. The Company is in the business of owning and operating
boutique hotels, restaurants and real property in Costa Rica. All
CAE activities are related to the Company hotels in Costa Rica,
and, as such, are reported as one operating segment (per FASB
Statement No. 131).

CAE includes among its assets in Costa Rica two hotels: Hotel Alta
in Santa Ana (a suburb of the capital city of San Jose), and Hotel
Sunset Reef Marine Lodge on the Pacific Ocean in Mal Pais adjacent
to the protected Cabo Blanco Reserve (See Notes from the financial
statements).  CAE also owns La Luz Restaurant (located in Hotel
Alta), Restaurant Playa Carmen (on the beach near Sunset Reef),
and a reservation, travel planning and marketing operation located
within Hotel Alta. The Company has approximately 58 full-time,
part-time, and contract employees.

All Company facilities, except for Restaurant Playa Carmen, were
open and operating by the beginning of 1998 (the first full year
of operations).  During the nine-month period ended September 30,
2002, the Company operated the 100-seat restaurant at Playa Carmen
(in prior years it had been rented).

Results of Operations

The first nine months of 2002 represented a time of continuing
difficulty for the Company.  A slowing of the American economy
(more than 75% of tourists and business travelers to the Company
hotels come from the United States), and a decline in travel
related to the terrorist events of September 2001 affected
occupancy at the Company hotels during this period.

Even though demand for hotel rooms declined, supply increased.
During the last two years, more than 275 new business-class hotel
rooms and more than 40 new restaurants have opened within a few
miles of Hotel Alta and Restaurante La Luz.   Six hotels and nine
restaurants
have opened near Sunset Reef.  Price competition has become a way
of life: large hotel chains (e.g., Marriott, Courtyard, Comfort),
offering exceptionally low rates since 9/11 have made it difficult
for HotelAlta to sustain its $155 rack rate.

Occupancy for the first nine months of 2002 at Hotel Alta declined
about 16% from about 49% in 2001 to 41% in 2002 (in the third
quarter occupancy declined from 47% to 29%).  Occupancy at Sunset
Reef was flat at about 25% (13% in the third quarter).

Comparison of Operations for the 9-Month Periods Ended Sept. 30, 2002 and 2001

The following is management's discussion and analysis of
significant differences in the Company financial position and
operations (see Financial Statements).  Note that revenues and
expenditures for 2002, when compared to 2001, do not include
Ecolodge San Luis activity.  The Company sold Ecolodge San Luis in
December 2001.

The nine-month period reported in this 10-QSB encompasses part of
the traditional low season when travel to Costa Rica declines
markedly (May-June and September-October). This year the Company
has been additionally challenged by lower travel demand brought on
by the Terrorist attacks of September 11 and the recession in the
United States.

During the nine-month period ended September 30, 2002, total sales
revenue was about $751,000, a decrease of about 15% from the same
period in 2001.  During the nine-month period ended September 30,
2001, total operational expense (cost of services and operational
costs) was about $847,000.  This represents a decline in expenses
of approximately $75,000 or 8% from the same period in 2001.
During this period, the Company lost approximately $95,000 before
depreciation of about $111,000 and interest costs of about
$58,000.  The net loss, including depreciation, interest, and debt
forgiveness was about $215,000.  During the same period in 2001,
the Company net loss was approximately $233,000.

During the nine-month period ended September 30, total assets for
the Company declined by approximately $510,000.  After achieving
the expected revenues from the sale of the Ecolodge, the Company
exercised its option to repurchase Sunset Reef in the second
quarter of 2002. Continuing to use revenue from the sale of
Ecolodge San Luis, the Company paid off a shareholder and reduced
its debt by about $150,000 (the note payable of $149,660 to an
officer of the Company was renegotiated: the officer forgave
$49,660 of the debt and the Company paid $100,000 to clear the
debt in full).  The Company also paid in its entirety a
substantial tax (social security) debt and the resulting interests
and penalties (which had not previously been calculated on the
Company balance sheet).

Future Company Directions

Management took several steps to strengthen the Company during the
first nine months of 2002. It continued to reduce expenditures and
began merger negotiations with a regional airline.  To date these
discussions have not produced any merger plans to present to
shareholders.

The Company also hired a new Vice President of Marketing and Sales
and changed the composition of the marketing and sales staff
giving greater focus to the business traveler.  Faced with
declining growth in tourism and overall weakness among Costa Rican
travel wholesalers the Company also altered its marketing focus.
CAE redesigned its web-page (www.thealtahotel.com) and began a
web-marketing campaign including search-engine positioning and
strategic placement of click-through advertisements.

Convinced that the business traveler is a key component of Hotel
Altas year-round growth, to successfully attract the business
traveler, the Company began to invest in new infrastructure.   By
December of 2002, the Company had installed high-speed, satellite-
based internet in the hotel rooms and the hotels business center.
The Company also introduced internet telephony that, by December
2002 would allow the Company to reduce its international telephone
bill. To our knowledge, Hotel Alta was the only hotel in Costa
Rica with high-speed internet access in the rooms.

There was a time several years ago when La Luz was in a small
group of elite restaurants in Costa Rica.  It still is, but
restaurant options have expanded dramatically. To increase
patronage and remain "fresh", La Luz improved and augmented its
menu, added a Sunday brunch, and inaugurated a Thursday jazz
night.

Liquidity and Capital Resources

Through September 30, 2002, operations had resulted in losses and
the Company has limited cash liquidity and capital resources.

The Company has had limited, albeit improving, cash liquidity and
capital resources.  To the extent that the funds generated by
revenues are insufficient to fund CAEs activities, it will be
necessary to raise additional funds.  In the short-term the
Company will continue to seek loans from banks and other sources.


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. Section 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.

ITEM 2. CHANGES IN SECURITIES

The Company did not sell or issue any securities of any kind
during the three-month period that ended on September 30, 2002.
See Item 5 below for securities sold subsequent to the due date
for this filing.

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, 2002.

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, 2002.

ITEM 5. OTHER INFORMATION

At a board meeting in September 27, 2002, the board voted to
"accept with regret" Paul Kings resignation from the board of directors.

ITEM 5A. INFORMATION SUBSEQUENT TO SEPTEMBER 30, 2002

The following information occurred subsequent to the due date of
this filing and is not covered in the financial statements of this
filing.

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 past three years, Pinkham and Pinkham was the principal
accountant for Central American Equities Corp.  At no time did
Pinkham and Pinkhams 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.

Changes in Securities

During the 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.

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 2002, the Company issued 700,000 shares of Common stock to Mr.
Caggiano.  In the fourth quarter of 2003 the Company issued an
additional 700,000 shares of Common Stock to Caggiano.   In
addition, at a meeting of the board of directors, during the
fourth quarter of 2002, the board granted options to Mr. Caggiano
as follows: 100,000 shares @ $0.10; 100,000 shares @ $0.15; and
100,000 shares @ $0.20.  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.

As of December 31, 2003 the Company had 19,739,268 shares of
Common Stock issued and outstanding and one million shares of
Preferred Stock issued and outstanding. Potential Legal
Proceedings Concerning a Tax Liability

As of November 2002, Hotel Alta owed Tributacion (the Costa Rican
taxing authority) approximately $230,000 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 Playa Carmen is located).

As of January 15, 2004 the Company was preparing to bring suit
against the Costa Rican sales tax authority for not accepting this
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 plans to pursue the case vigorously if a
negotiated settlement is not achieved.  It is difficult to
evaluate the likelihood of an unfavorable outcome in this 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 June 30, 2002
(less interest and penalties) has been accounted for in the
financial statements of this filing.

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, theregistrant 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: W. F. O. Rosenmiller, Director

W. F.O. ROSENMILLER, DIRECTOR



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