CryptoLogic Limited (USA) (NASDAQ:CRYP)

Cryptologic Inc. is an incredibly strong company from a financial standpoint. It is a cash generating dividend payer with little to no debt. These are rare attributes for a cheap, small-cap stock.
Concerns over U.S. legislation are exagerrated, and if laws against online gambling are passed, Cryptologic still has international revenues (over 65% of its business is non-U.S.) to count on.
Cryptologic is a low-risk, high-reward investment for someone with a 1 year+ time horizon. However, as a small-cap stock, Cryptologic is very volatile in the short-term.

Booze, cigarettes and gambling. Notice a trend?

This company has yet to dissapoint to the downside - all the while it's stock fluctuates up and down based on proposed legislation (which will likely never see the light) and unrelated events (arrests of CEOS of internet gambling companies). Still a bargain at today's prices, but stay patient with this one as nice entry points seem to come along at least once a year. If you like earnings, cash flows, dividends and great growth at a value PE - this one is for you. If you don't like options - hold your nose and press the buy button - you will be rewarded along side management.

Cash machine, it has a very high return on cap and a relatively low price.

Consistantly crushes expectations and is smack me in the head cheap right now.

Some people don't like this stock due to all the options management is doling out, but from looking at the metrics, this stock has big time value. Revenue growth is strong, the company has a bunch of cash and no debt, and I like the overall business model. Dividend is a nice bonus too for this small cap!

I hope the execs stay out of the US, considering what happened to other CEO's of gambling related companies.

Internet gaming is hot... poker game especially

Online gaming, what better an investment. A man will gamble away his money before paying his mortgage. It's a sad fact, but this company is a pioneer in it's field and I think it can only improve from here.

William Hill will resign their contract

stock should start moving up

Poker is probably a fad, but it won't go away completely and the casino games keep growing. The anti-internet legislation needs to fail. I think the Playboy site could be huge.

this is one seriously performing stock, 26% operating margins, 25% eps over expectation last quarter, quarterly YoY revenue growth of 52%., with forward looking P/E of 11!! and a 1.8% dividend for me to wait until the market finally understands the value here.....WOW!!

Cash generating machine with management who have shown an ability to develop products that the market wants. Outside of the US at least this market is likely to show strong growth for years

Internet gaming. People love it and it attracts new customers all the time.

CRYP has been a quarterly outperformer for 2+ years. The company has solid fundamentals, and seems to be printing money. With a topline growth rate of >35% and Net Profit of nearly 25% the PE Ratio of 12 is laughable. My target in the short-term is for the pending legislation to expire unpassed and for CRYP's PE to correct itself...I believe the fundys can support a PE of at least 18 even in a downtrending market. The potential downside is aforementioned pending legislation in the Senate meant to put a freeze on all internet gaming in the US (as opposed to just sports betting which Cryp is not affiliated with). I happen to believe that this bill will not be passed since the bankers have recently come out against it due to a large burden being placed on them to regulate credit card payments being used for online gambling purposes. Also, more than 65% of CRYP revenues are from non-US sources making them a nice takeover target in the event of passage of the Goodlatte Bill. Additionally, if I am wrong and the bill passes, the industry may suffer a sharp decline in the short-term (double-down opportunity) followed by a longer-term realization that online gaming activities simply cannot be effectively policed. I am currently, cautiously accumulating this stock on dips below $24.

Excellent fundamentals

Plenty of free cash flow, low PE, 8 bucks per share cash hoard, and elections in the fall will kill the online gambling bill.

Gambling is alive and well and Cryptologic is making it more available to all. The most valuable company in the world (Coke) mastered the task of distribution and that is what Cryptologic is tasked with.