March 6, 2007
SpeculatingStocks.com Stock Pick: Cryptologic, Inc. (CRYP)
Stock Price: $22.44 (long-term strong buy)
Cryptologic, Inc. is a developer and supplier of Internet gaming software. The company licenses its gaming software and services to customers worlwide through its wholly-owned subsidiary WagerLogic Ltd.
CRYP has grown revenues from $44.21 million in 2003 to $63.71 million in 2004 to $86.30 million in 2005. Net income has grown from $9.44 million to $13.66 million to $20.53 million for the same three year period.
The company's latest quarter was effected by legislation disallowing online casinos and poker rooms from taking wagers from United States players. Q4 2006 revenue came in at $18.98 million with net income of $1.71 million.
We believe this is only a short-term effect on CRYP. The company will still grow strong internationally, especially in China and Europe. CRYP still has significant cash and short-term investments of $126.94 million as of the end of Q4 2006.
CRYP is trading at a market cap of only $305.81 million. A 10% Beneficial Owner of CRYP purchased $392,415 worth of CRYP in a non open market transaction at $24.92 in late January.
SpeculatingStocks.com Target Price: We expect CRYP to reach $35.00 over the next 4 - 8 months.