CryptoLogic Limited (USA) (NASDAQ:CRYP)

Another example of the market over reacting. Loss of revenue from US clients will be painful but in the longer term their growth in Europe and hopefully Asia will sustain Cryptologic. Balance sheet is strong and will hold them over.

stock price now less than 2x cash after online gambling bill passed. still has growth potential because 70% of revenue is outside of U.S.

oversold

bounce from big drop.

Down 18% on new US regulations to $17.98 but if you believe mgnt the US only accounts for 30% of earnings. A $1.98 * 0.7 = $1.39 in non-US eps. So at today's price you can buy CRYP for 13 times earnings assuming US earnings go to zero. That's before you back out the $9.23 a share in cash. There's plenty of non-US growth to gobble up and I seriously doubt that US sales will go to zero.

Overreaction to legislation that was anticipated as to what just not when. Cryp has been planning on this as a likely scenario and has a strategy to grow off-shore. There may be some short term tests of this point but 2 years from now will be a blip. The biggest risk is a key contract renewal coming up in 45-60 days.

Oversold. Never underestimate the ability of people to work around laws to satisfy a vice.

is there anyting more ironic than Harras' being up huge on the same day that legislation destroys all online gaming stocks. This is politics playing out in the stock market, bring in the votes in the mid-term elections, and then go the same route as the flag burning, gay rights, school prayer, etc. controversies.

They are already light and removing themselves from the US market. The new law has caught them in the same net as those with high stakes in the US online betting market.

Big hit today from a panicked market but they have are positioned to make money overseas. Glad I didn't own any yesterday;)

Growing company that got killed because of the new US legislation. The market over reacted because they have long since limited their US gaming ties and are looking to expand in Europe and Asia where the laws are more conducive to online gaming.

Recent drop is a great opportunity to own this cheaply valued online gambling company. Little ties to US market so the US legistration on outlawing online gambling will have little effect. Doesn't depend on Poker only. Have to see if they can resign William Hill.

Will this poker craze end?

Good value despite reg risk. Could be a 10-bagger over next 5 years

This is the biggest of dogs in a market that, while I don't see ANY purpose in "gaming" myself, the world seems to be beating a path to anything online that risks money for 'fabled' rewards. Add in the management and the history of good decision making and I'm on this big time.

I think the move to Europe will be good for the company in the long term. It will embed them with their main customer base and may provide additional business opportunities going forward. The deal with Playboy may be the start of a new business paradigm for CRYP, in which they take a more active role in developing actual online gaming environments for entertainment brands that want to add this type of feature to their stable of properties. Without any new opportunity, CRYP offers a margin of safety to its value just as it stands at these prices. Will Hill defection could alter my opinion.

Seems like a market overreaction to me. Better regulatory environment to be sure.

Market overreaction makes for a good buy here.

Over $4 in free cash on the books. (Shows $9.00 but some of that is A/P and other cash is client accounts which CRYP gets to earn interest on but doesn't really belong to CRYP.

WIth $2.50 in earnings on an EV of less than $19, this stock is a bargain at $22.00