Optimal Group, Inc. (NASDAQ:OPMR)

MFBriguy (99.81) Submitted: 3/19/2007 10:49:24 AM : Start Price: $8.56 OPMR Score: -72.30

Trading below book value. Trading just above net cash. EV/EBITDA of 0.94! Online gaming legislation in the US has and will continue to hit earnings, but the stock is priced as if the underlying business is near worthless.

bluething (< 20) Submitted: 3/19/2007 12:14:11 AM : Start Price: $8.69 OPMR Score: -72.90

Industry will grow. Financials better then sound.

rossoyoungs (< 20) Submitted: 2/25/2007 11:05:06 PM : Start Price: $8.72 OPMR Score: -68.85

Yes I agree

daskol (< 20) Submitted: 2/20/2007 8:44:24 PM : Start Price: $8.71 OPMR Score: -68.96

Held this one for a while, and it hasn't done much. Promising business with very little attention being paid to it.

jixiang (46.73) Submitted: 2/14/2007 11:23:36 AM : Start Price: $8.71 OPMR Score: -68.91

Cash $130M, MC ~$220M
Two segments, non-gaming and gaming
Taken a hit due to UIGEA passage
Non-gaming segment worth $90M using very conservative forward estimates using DCF based on current EBITDA.
This means the gaming segment is essentially free. Company is planning to buy back the public part of FireOne for $15M with part of it's cash.
Non-US FireOne business has been growing at >30% and will probably continue to do so. Based on current FireOne EBITDA this segment is very probably worth > $100M, possibly much more.
Management very competent but inclined to reward themselves very handsomely. This should however encourage them to maximise the potential of the business. Need to watch whether this is to the benefit of outside shareholders.

jls1224 (< 20) Submitted: 1/24/2007 5:57:07 PM : Start Price: $8.50 OPMR Score: -69.48

i think OPMR is undervalued but i was hoping someone might be able to walk me through a detailed analysis of their cash position because it seems that not all of their cash is

kirket (< 20) Submitted: 1/17/2007 8:59:14 AM : Start Price: $9.27 OPMR Score: -72.48

low p/e
low p/s
high roe
good growth potential
low debt

jackmotts (53.75) Submitted: 1/8/2007 10:35:22 PM : Start Price: $9.33 OPMR Score: -73.71

Its been beaten to death!

LovinMe (92.68) Submitted: 12/30/2006 7:12:04 PM : Start Price: $9.69 OPMR Score: -74.01

Ouch, took a hit from recent changes on gambling sentiments but wow... talk about market overreaction!

Price will come back up and outperform easily. All it really needs is one analyst to give it a thumbs up (but what analysts likes to take THAT much risk? haha)

Rated low due to light trading and N/A information on the company. Just wait till we get the 411. Then we'll see that flatline turn into a heartbeat.

Persuter (82.29) Submitted: 12/12/2006 11:43:48 PM : Start Price: $9.08 OPMR Score: -72.37

Very depressed stock price, and a very good market to be in right now. Their high P/E is an anomaly, they simply have just become profitable so they had very small earnings. As they grow their earnings, their P/E will drop drastically and the proper valuation of the stock will become more obvious to traders and analysts.

Heck, let's just put it this way -- the company is profitable and in the black, and their cash and short-term investments sum to almost exactly the market cap. That's undervalued.

yaddayadda93 (58.08) Submitted: 12/11/2006 2:05:49 AM : Start Price: $8.57 OPMR Score: -71.37

bottom feeding

ykopeliovich (< 20) Submitted: 12/8/2006 4:14:36 PM : Start Price: $8.57 OPMR Score: -71.37

Share price is $8.6. Net Cash is $8.6 per share, no debt, you are essentially buying OPMR's earnings power for free! Asset protection for the company is over $8 per share. The Company pledged to buy back around 4% of the shares outstanding. This is an extremely cheap stock that still has earnings in it. Earnings in the last couple of years were low due to restructuring and discontinued ops. Future earnings should improve despite the new bill. The effect of non-recurring items should gradually dissipate.

The company lists customer contracts, relationships, and service agreements under their intangible asset category. I valued these at gross cost (added back the accumulated amortization); however, according to the 10-K these intangibles were acquired under an agreement which obligates the sellers to guarantee profits. In other words, if margins are lower than a stipulated minimum, the seller is obligated to pay the difference. There is a $10M collateral that was given to OPMR for every year under the service agreement (to guarantee the minimum margins).

5STARsmallCAPS (78.15) Submitted: 12/2/2006 4:11:42 PM : Start Price: $8.56 OPMR Score: -72.17

5-star $204 million market cap on 12/2/06
Payment processing equipment and services, HQ in Quebec.
5STARsmallCAPS picks five star stocks with the smallest market caps.

FutureHFGuy (40.51) Submitted: 9/13/2006 10:50:40 PM : Start Price: $12.94 OPMR Score: -88.32

The market is too concerned about this company. While gambling and options concerns are obviously warranted -- they are being overpriced into the stock.