SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Cryptologic (CRY/TSE): First Profitable Internet Casino
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mephistopheles who wrote (1129)8/17/1999 11:51:00 AM
From: DaveAu  Read Replies (2) of 2782
 
Why I continue to buy Cryptologic:

1. Value:

Growth rate of both revenues and earnings so far this year
exceeds 40%. Fully diluted PE ratio 7.50 (15.00 share price,
2.00 earnings, Canadian $). Earnings include no extraordinary items and only a very small amount in one time license fees.

2. Financial:

Very conservative accounting:
- CRY expenses all development costs.
- There are no intangibles on the balance sheet. Almost all
the assets are cash.
- In 1997, they wrote off a 3.5 MM dollar receivable as soon as
it became questionable (it was later recovered in full).

3.50 per share (Can $) in cash

No interest bearing debt.

3. No Hype:

- They claim that no earnings can be expected from the
E-commerce product for 3 years.

- They refuse to make projections.

- They don't issue figures on gross gambling revenues (which
tend to give an inflated picture of the size of the business) in their news releases.

- They don't issue press releases on non-material events.

- They don't have any promoters or paid touts.

- Very little analyst or media coverage thus far.

4. Future Potential:

- Version 4 of casino software due out this year. Note that version 3 was delivered on schedule.

- Version 4 will have ability to add languages very quickly
which will expand the potential market.

- The company will soon be marketing the E-commerce product
to other industries.

- Will probably be on Nasdaq by end of October.

5. Insiders

Insiders own about 50% of the company (much of it thru warrants).

6. Industry is growing

The on-line casino business is still very young. CRY is the leader in both revenues and technology.

Areas of Concern:

1. Will the low tax rate be sustainable ?

2. New licensee (LasVegasCasino.com) has a troubled history. Note however that with CRY, the licensee has no control over payout rates, payment to CRY, or payment to the users since CRY handles all the money.

3. Kyl bill. I don't believe it has any chance of passing this session but it tends to stop people from investigating the company since the media are always sure to mention it whenever discussing CRY.

4. There are some sleazy operators in the industry which tends to leave a taint on all companies.

BJ
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News