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$12.84 0.13 (1.02%)
7/23/2008 3:58 PM

CryptoLogic Limited (USA) (CRYP)

CAPS Rating:
*****

The Company through its subsidiaries, engages in the development and supply of online gaming software worldwide.

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Avatar brokeyourdealer (66.27) Submitted: 5/16/08 12:37 AM : Underperform Start Price: $18.97 CRYP Score: 8.18

I'd be willing to pay for a company that is GROWING, but not for one that is SHRINKING.

Ask yourself - why would I pay up a 45 (according to Fool, other sources say higher) P/E multiple for a company that is losing revenue, skyrocketing costs(see article on 5/12), and a shaky business model?

So they signed a deal with the asian presence... great! But they have still mismanaged what they currently have, who's to say they won't for this new deal? Management incompetence breeds more incompetence.

This company earned $1.87 per share in 2006... in 2007?

41 cents.

I don't understand the bullish sentiment on this security at all. I might just be missing it, who knows.

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Avatar IBleedConcrete (98.77) Submitted: 5/19/08 8:09 PM

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It's pretty simple - revenue fell from 2006 to 2007 as they pulled out of the US market as a result of the Unlawful Online Gambling Enforcement Act. Now they are focusing on overseas growth which has taken off the last few quarters.

While the quarterly report is disappointing, costs only increased 6% year over year, certainly not "skyrocketing". Where does your accusation of managerial incompetence come from?

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