My first post on Silicon Investor.
I bought 85,000 shares of EGAM, mostly during the recent decline.
I think EGAM is a great stock -- it has the earnings of a highly profitable company, the potential of an Internet company, and most importantly, it is currently WAY UNDERVALUED. Frank Catalano has stated that the fair price of this stock is >$5 today, and could be $12 in a year. I have reviewed their website, management team, and earnings/PR announcements. I am very impressed by the quality of their website, and the effort they have put in to make solid financial information accessible to all via their website.
I have been an executive in software companies for 4 years, and have to say that EGAM is quite an impressive business.
I do think there are some negatives, such as their games (no killer games, but I believe they know what they're doing with second-tier games, and can make more money for another two years, before they need to come up with a top-tier game OR become an E-tailer). I also don't think they have such a great technical team (but that is more than made up by their business acumen, and their willingness to license and resell games from smaller developers). Finally, they're definitely not yet an Internet company (but who is, other than amazon.com and yahoo!?).
I have been following Frank Catalano's suggestions for over 5 years. I usually do my homework and pick from his picks. On a software company like this, I am quite sure my homework adds value. Then, I hold on to a stock unless (1) the time comes to take profit, or (2) the stock's fundamentals deteriorate. Some of you may be disillusioned due to the recent drop caused by market makers and speculators. But be assured, the times I have held on to Frank's picks, I am almost always rewarded in the end. For example, I bought 30,000 shares of a stock (Roadmaster Inc) at $1.50. It went down to less than $1, and traded around $1 for about 1 year, before finally going over $3, where I sold.
I hope those of you who have the stock will have the patience to wait out the current speculative madness. Be assured that with positive earnings, the stock has nowhere to go but up.
K.Lee |
