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Added a chunk more this week
http://bit.ly/18jx0x
I was the buyer minus friday the 10 days. Sold some GORO and bought EGMI and this.
http://bit.ly/18jx0x
if you actually read the proxy the company was already 4m shares over the previous options plan allotment due to issuing options to ceo, lord steinberg, new cfo, etc...so the actual increase in options avail for issue is 4m, since 4m are already spoken for. This falls in line with the average plan of most companies ie most option plans represent 4-6% of the shares outstanding. And since the management team is now filled out I wouldn't expect those new 4m options to be issued out anytime soon..will prob take years. I also called Yvonne this morning and confirmed all of the above.
Again my guess is they earn 30c pre tax and 20c post tax in 2010. They have enough contracts announced to do that already. Trading a 10x 09' guid, 7x Roth 10' guid, growing EPS 50%, $11m Cash, $22m Assets vs 700k liab, and not china based. Goin Up Soon
with the company growing 50% yr/yr now trading a 11x 09 guidance, with more accretive deals on the horizon you would have to be on crack to sell this here. But nothing surprises me. Welp. I'm outa here for the day, in Salt Lake visiting ZAGG.
Nice find. When I spoke to Kevin a month ago, he said the China Lotsynergy was very excited and introduced them to other players in the lottery industry. He also said that the Def Agreement was more of a local/national govt approval thing then simply China lotsynergy simply signing off on it. Probably 60 days away.
please do..one less idiot
not for long..one more dead week to go till sept
historically the last two weeks of august are the deadest days of the year, and this year is no different. Many on vacations and just shutting down for some r&r.
Roth Update
Electronic Game Card, Inc. | EGMI - $1.60 - OTC | Buy
Prev Close: $1.60
Price Target: $2.00
Market Cap: $97.3
EGC Enters S. Korea Market with Kellof Distribution Agreement
* EGC enters Korea Market. This morning EGC announced that it signed a 3-yr license agreement with Kellof, Inc. for the distribution of its Electronic GameCard, iQuizCard, and Edutainment Play Cards for the South Korea market.
* Deal terms. Per the agreement, Kellof will market, sell, and distribute EGC's products in South Korea and will pay EGC royalty fees ranging from 20-25% of the gross selling price with a minimum annual guarantee of $200,000.
* Impact to EGC. We estimate the minimum guarantee likely equates to Kellof selling anywhere from 350k up to 1.0 million units depending on the product mix. EGC expects to record the first royalty payment of $50,000 in 4Q09.
* Strategy gaining traction. Mgt continues to execute on its strategy to add new distribution channels/partners for its electronic gamecards by signing key distribution agreements in both domestic and international markets. We look for these agreements to drive revenue and EPS growth in FY10.
* More insider buying. We also note further insider buying with the company's Chairman, Lord Steinburg, purchasing another one million shares this week bringing his total ownership interest up to 16.4% of the company's common stock.
* Investment thesis. We reiterate our BUY rating as we continue to like the stock at current levels with shares trading for only 19x and 13x our tax adjusted FY09 and FY10 EPS estimates despite expectations for 40% earnings growth in both FY09 and FY10.
the price was actually agreed upon more then a month ago..just couldn't do it until after quarter was out..so thats why it looks lower
called yvonne this morning...it was a private transaction from a person that literally had to sell due to sickness to pay bills. Nice purchase by the Lord.
The amazing thing is looking a year out, this time next year, with the sale of the investments on the balance sheet valued at $7.5m currently, EGMI will likely have $20-30m in cash to go out and acquire some accretive technologies.
When I spoke with management they were very focused on finding an accretive acquisition within 12 months. I wouldn't be surprised to see cash deployed in this manner when the time comes and smartly so.
EGMI: Adding Another Layer of Revenue and Net Income http://bit.ly/og1Fh
Revenues up 236% to $9.2m, Company Reports $0.05 EPS for Second Quarter
Beats Consensus est of $7.88m Revs, and 0.04 EPS.
When it's all said and done ie further deals are announced, I bet the company comes in around 20c Net after tax for 2010. Thats all I'm saying. Analysts are idiots and that is why I buy here and the "smart money" buys me out at $5+ when they finally get the story. You need to have foresight to make real money just as many on this board have done/are doing.
lol..dude I know what after tax means and thats what I'm saying. I expect fully taxed will be 20c for 2010 thus basically a 30-32c operating rate for the year. My guess is they have enough NOL's to last through Q1 2010.
OT: Buying Low and Selling High: How I Do Both http://bit.ly/3VP4zI
wrote this today, hope some find it interesting and helpful.
my guess is when its all said and done that they will earn 20c after tax in 2010
I was going to post something similar a week ago. This is going to bust out very soon. Let the odd lotters bicker.
what a perfect match for a cfo
Electronic Game Card, Inc. Appoints New U.S. Based Chief Financial Officer http://bit.ly/v7Wed
looks like an excellent fit
a couple more deals out and the train leaves the station for good
as a couple more would almost solidify a 100% rev and net income growth in 2010.
it's really that simple
stock is silly cheap along with a cash hoard on the balance sheet
only reason stock didn't finish well last week was this NITE seller hit it hard on fri as he has for a week straight.
Stock traded 4m shares last week, so it won't take long to climb out of any impediment.
Great comment on my blog post. These little tidbits are good to know.
http://bit.ly/1oR0J
ZAGG Pre Earnings Blurb http://bit.ly/1F6Bf
Its the same seller we've had for the last 7 trading days ..all NITE on teh offer..anyone with level 2 can see that. One things for sure..he has a lot less shares then he did yesterday which is fine by me.
Roth couldn't hit the bottom of a toilet if they sat down to pee
EGMI: Roth Capital Ups Target Price to $2.00 and CC Highlights http://bit.ly/L154F
Thanks Rawnoc..saved me the time
yeah i'm surprised he didn't raise it to 1.78...seriously grow some balls
Roth Capital Reiterates Buy and Ups target to $2.00
2Q in-line, New Products to Drive 2H Growth;
Reiterate BUY
2Q results in-line. EGC reported strong results in-line with our EPS est. Total revenue of $3.1 million (+23% y/y, +4% q/q) came in just shy of our $3.2 million est. However, EPS of $0.03 (+50% y/y) was in-line as GMs of 80.4% came in above our 78.4% est as EGC continues to add high margin recurring revenue and drive lower product costs.
Revenue breakdown. EGC sold ~1.6M game cards at an estimated ASP
of $1.25/card and recurring revenue including SciGames and Sovereign royalties was ~$1.1M, or 35% of revenue.
New products hitting the market. Mgt expects to begin shipping its new QuizCards to international customers in 2H09 followed by N. American shipments in 1Q10. Mgt also expects to ship Thomas & Friends Educational GameCards to international customers in 4Q with U.S. sales likely to follow in 1H10.
Strong FCF & improving bal sheet. EGC generated $1.0 million in FCF in Q2 and ended the qtr with $11.0 million in cash/marketable securities. Conv pref stock declined from $4.5 million to $3.3 million placing the company in a net cash position of $7.7 million and EGC also has $7.4 million in investments that it intends to monetize by mid CY10.
Mgt reiterates guidance, increasing PT. Mgt reiterated its FY09 revenue and EPS guidance of $17 million and $0.14. We are leaving our ests unchanged, but we're taking our PT to $2.00 (from $1.75) to reflect consistent execution, an improving balance sheet, and potential upside to our estimates from a signed def. agreement with China LotSynergy to produce electronic lottery tickets for the Chinese market.
Thesis/Valuation. We reiterate our BUY rating as we continue to like the stock at current levels with shares trading for only 19x and 13x our tax adjusted FY09 and FY10 EPS estimates despite expectations for 40% earnings growth.
Shares of EGMI currently trade for 19x and 13x our FY09 and FY10 tax adjusted EPS estimates. We note the peer group of gaming equipment suppliers now trade for 20x and 15x CY09 and CY10 estimates, respectively. Our new price target of $2.00 (Previously $1.75) is based on a 15x multiple to our tax adjusted FY10 EPS estimate.
i will prob just wait for the transcript to be posted. I'm guessing that shld be out in 24 hours.
yeah I have a bit more than you but you have a rooting position. Ole "budbart" owns more then both of us put together, he is one greedy SOB.
Rawnoc: why don't you write one of your classic summaries of the call..i'll use it as a starting point for a writeup..
I'm really surprised obama hasn't initiated FFUS, Funds For Underperforming Stocks, to put a floor under everything in the market.
zagg reported 10c untaxed in 08' and will report most likely 20-25c fully taxed this year. I expect the same thing here 09 to 10'. The potential here is gynormous from current levels. These ideas only come around once in a blue moon, especially to find back to back blue moons with zagg and now egmi. Keep thinking its not cheap. It's part of every cycle..dumb money out smart money in.
i'm not saying it won't pullback cuz anything is possible ..but i will be waiting with 5 fists of cash.
you are wrong again just like you were on selling zagg at a buck. This is not about this qtr...you need to stop looking in the rearview ..this is about 2010. I will be right and you will be wrong.
doubt they will give guidance. More likely will say it by saying they feel comfortable with Roth estimates.