CryptoLogic Limited (USA) (NASDAQ:CRYP)

Nightmare of a former Hidden Gems trash. CEO stepped down, now a board member is taking the interim CEO position. CFO turn-over as well. With that said the stock has taken a horrendous beating and now sports a market cap roughly at or even below net cash. Of course, the company is burning cash. But looking for a short-term pop or acquisition by a competitor here in CAPS.

A stock that constantly pays dividends and has sizeable retained earnings should not be dropping like a stone

This company is now worth $170 million on the market. It has $75 million in cash with no debt. The company moved its headquarters from North America to Europe after the US banned online poker gambling. The company had several writedowns due to the move but has since picked up steady business in Asia and Europe where poker is still hot. This company will be surpassing expectations over the next few quarters I believe.

I believe U.S. online gambling will be back. If the ban is overturned, and I think it will be, every major casino in Vegas, Atlantic City, and any other place that wants you to roll the dice will be looking to get a piece of the internet. In addition to getting back the revenues lost from lack of American players, CRYP will be signing license deals with major U.S. operations. This is just speculation, but I believe we are likely to see new legislation favoring CRYP this year.

How long am I going to sit and watch this money maker? Not any longer. Well below $20 now, so time to make some money. No long-term debt in their portfolio and making solid in-roads into the Asian market. Gambling on line is spreading like wildfire and I don't see that changing in the future. This is a highly speculative investment, because competition in this market is high, but I can't resist these kinds of profit margins at this price. Once again, I'm just sorry I missed $15 on this stock, but I'm happy I'm below $20. This is a nice aggressive small/core investment to add to a portfolio with more stable and conservative value picks.

These guys just signed with one ofg Asia's largest online gaming providers. As the gaming industry is re-vamped to make it legal for off-site, 3rd party gaming (Party Poker, etc.) this sector obviously will erupt. Give it a few weeks. Maybe a month or two.

I'm down with the cryp-luh

cryp

1000

It's cheap (compared to book value and my $1.40 EPS estimate for 2008). It grows quickly (except for the first half of 2007 when the U.S. ban on internet gaming made for a tough comp). The earnings growth combined with the possibility of a new president and Democratic congress overturning an internet gaming ban that was unpopular and passed in a very flawed way (it passed only because it was attached to a very popular port security bill) should give CRYP a favorable risk/reward ratio.

I went bull on this for some reason...

Well, online poker is dying about as quickly as it came to life a few years ago. It is getting increasingly difficult to use online funding methods as well, and they seem to be getting more expensive (at least my options as a Canadian seem to indicate, the cheaper money transfer services online seem to not offer services to Canadians).

Since the whole no online gambling thing in the US happened, whatever poor rationale led to that decision sparked a series of negative events (like numerous individual sites and services no longer offering services) which have made online poker far less lucrative, and more difficult, timely and costly to execute.

My personal contention with Crypto is that they aren't that high up on the online gambling food chain as it is. I've heard nothing but negative comments about them from others, but what I've heard is in fact so negative that I don't even believe these things to be true.

Of course the online gambling is certainly not limited to poker, the online gambling movement may simply be moving away from poker and into other gambling activities like sports betting.

I'll never put any real money on this one... but I'll be watching.

Gut Feeling

Settled after exodus from US. and poised to profit heavily from online poker and gaming boom in asia and europe. I think the UIGA will be overturned very soon and this will create opportunity for Cryptic to move back to the US

Just building a sin stock portfolio

pabrai

I think it is time to start buying on this one. The stock is cheap, they have no debt, the shift from NA is complete and they are focusing efforts on EU and AP. I think the big oppy is in AP where they just made an acquisition. Plus, there is the bonus of the dividend yielding over 2% (hopefully they can continue to fund it).

asians love gambling

In a word, China!

Asian- Chinese- market! The Chinese LOVE to gamble and just look at the number of potential players in all of China! What a great time to buy.......