CRYP. Madharry (and others who might be interested), you might want to check latest Barron's for cover story on online poker. CRYP, apparently one of the few US publicly-traded firms in the sector - and one that can report earnings - is mentioned favorably. Of CRYP, Barron's says, " Given CryptoLogic's strong growth... and solid balance sheet with over $6 a share in net cash, the company seems like a reasonable bet on the online-gaming boom."
My opinion: "boom" might be a key word. At 27 x last year's earnings (per Barron's), and with no 10-year public history, I'd say the stock cannot be a Graham value. OTOH, IF the company can maintain it's juicy profit margins - i.e. IF the boom doesn't become bust and/or if new entrants to CRYP's business don't crimp CRYP's profits (margins), then imo, CRYP would be a value still and a buy at current p/e.
The 'ifs' scare me though; I'll not add shares, but I will stay a holder for now. |
