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Found my old post...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30048322
Max 10 yrs with SGMS. If EGMI is successful and no one adopts the SGMS card than SGMS will be an additional kicker to top line/bottom line. SGMS has deep relationships with lottery officials, so they do have an edge. However we have a Lord in the manor.
From what I remember abt reading the contract, I believe they do. They have to pay EGMI a fee for doing so. They have detailed it in their filing, but I haven't looked it up, recently..
I've been holding for a long time. Bought some in the teens a while back and have been steadily adding. Have not added in at least 6 months. Have not sold one share.
They do have a potential competitor. Their partner Scientific Games. Pretty much partnered up with them to steal their idea. However, they are limiting the business to just lottery sales. EGMI, thinking outside the box and expanding their applications given the potential uses for the technology.
Been a while since I've posted, but actively following the company and the board. Waiting patiently until company achieves some of their goals.
OT: gilead23
Hate to bring up REPR on the EGMI board, but had to make this quick defense. Steinberg's backing is an unusual catalyst for a microcap and EGMI communicates better to shareholders, which is true. However REPR is not a 1qtr phenomenom. The strength of their new growth driver (Freedom60) is masked by lumpiness in their existing products. However Freedom60's sales have been getting large enough to make significant impact on REPR's sales. They had 3-4 qtrs of extremely strong growth for this product and it carried through to the most recent qtr. While the company is a value based on earnings numbers right now, it's a great value based on the phenomenal growth of this new product. Because of this I'm expecting my investment in REPR to overtake EGMI as my largest holding.
My guess is the CEO issue is related to Steinberg. If he was going to invest in the company he wanted to make sure he had a formal say in the process. He was only made officially the COB, recently. According to statements, I think he started sniffing around at this company around Nov of last year. This probably delayed the CEO search since he was looking to make a significant investment. Since he has all the connections to get them into the Stanley gaming business, the company probably kowtowed a bit to his broad network of connections. The nosedive of share price, I'm hoping is due to hedge funds unwinding large amounts of shares. I'd suspect they get rid of the most illiquid positions first. that's why our EGMI baby was thrown out with the bath water. At least I hope that is the case.
Looking back what I initially wrote was a little unclear. I was actually comparing REPR performance to EGMI. Check out the earnings growth and YOY comparisons for REPR and you will see what I mean. One major difference is EGMI's solid cash position vs. REPR, but the growth is much stronger on REPR, so cash will accumulate soon. Considering the investors are probably of a similar cloth, I would think reaction to be similar. Maybe I am off base, but that is my logic for where we go in the near future.
REPR was similar. Took a beating, reported good earnings and went back up and a bit above where it was prior to beating. Given my view that EGMI reported solid, but not outstanding results maybe we get back to the .60 range. I would take the .50 range for now and much higher following more confirmation of growth in the next Q. I think the market is now asking "SHOW ME THE MONEY!!!" before the stock dances for us.
Yeah, I need some palliative relief via SCIG given the a$$ beating I've been getting in the market. Too bad that hasn't been approved for Freedom60.
I thought it was both. $1mm was already paid and about 700k was in A/R.
.30 sale of 100 shares. Now I'm happy. Even though just window dressing. It's a nice feeling to be solidly on the plus side of a stock.
Stock action seems a bit exaggerated for the news, but I guess in a bad market a high flier with bad news gets hit hard. So it seems a total of $1.7mm of past revenues may be in doubt. That's about 9% of previous revs. So even if we write that off completely, did it deserve about a 60% whack in stock price due to the issue? Probably not.
After selling ZYXI, ALIF was another I stock I got into. Of course this is after seeing you and MikeS97707 discuss the stock and doing some dd. Though what they sell is rather discretionary, it costs little and is in a growing field. Good outweighed the bad. They proved it with their knockout numbers this quarter.
That's one of the reasons I sold out of ZYXI. I reinvested in EGMI and REPR. Lost some on EGMI, but REPR is doing nicely. REPR's FDA approval of it's device is a nice moat. Though with this drop, ZYXI is looking enticing.
Make me happy. Someone hit the ask. :D
Can't say there is some conspiracy, but what other stocks have you noticed that? Unfortunately I've loaded up on EGMI at higher levels, which prevented me from taking part in this recent upsurge. Can't complain too much since I bought almost 1/2 my shares in the teens.
Emailed IR before and they are pretty good at getting back on questions.
REPR is a large position for me. It has done nicely considering the issues with the market. After the nice numbers this past quarter, really looking forward to the next one. Freedom60 sales are the growth driver in this stock and has been masked by lumpiness in other products. They can't hide this amount of growth for long.
SGMS is developing their own version of the game card. It's not as easy to use, but functionally the same. My guess is they signed the licensing agreement to tie up EGMI in case their product doesn't work. No other reason they wouldn't promote the product that won Lottery Product of the Year.
Amazing how the earnings news barely created any volume. Buyers afraid to buy. If I had any spare change, this would be one of my top places to put it. I do have a slug of cash, but I'm saving it for if the world goes pear shaped. The overall market has gotten bad, but I'm waiting to see if it overshoots.
I'm just about break even with this position. I guess earnings will just have to keep going up before I make anything on this puppy. It's on a nice trend as Freedom60 sales are the driver of growth. If they expand the market of drugs beyond Vivaglobin, this will be one hot ticket.
We continue to experience an increase in sales
and cash flow during six months ended August 31, 2008 and with these increases
and the capital we currently have, we will continue to meet or exceed the
company's financial goals. If the sales continue to increase at the current
rate, which we feel confident of but cannot assure, we believe we will have
sufficient resources to meet our financial obligations for the next twelve
months from our cash flow alone.
I thought this was a very important point in their filing. In these rough times of credit availability, they need to be able to self finance. With the strong revenue growth and the continued growth of the SCIG market only means good things for this company.
Could be the Delta funds. Remy Trafelet is having a rough year.
Small Caps and VMC's getting pasted. I expected lower, but the elephants are stampeding!
Did someone really let go of some shares at .25? Missed the boat on that one.
Turns out I'm half man and half sheep with my picks. Pretty much expected it given I chose AYSI and EGMI. Those two are also the top two in my portfolio. Here's hoping that many heads are better than one.
EGMI - I don't get it.
Why is there so little interest in the news? I thought there would be a bit more chatter on this stock on the board, considering the magnitude of the news. I know the current financial crisis scares the bejeezus out of me, but even in the worst markets there are stocks that perform well. This stock can clearly be one of them. This is one of the top picks for PSL 9 & 10. They are clearly in the VMC category with a very compelling growth story. They just signed a huge licensing agreement that guarantees a minimum amount of royalties for the next five years to enter the Indian gaming market. This is their biggest contract so far. The royalty fee they earn is very nice. I remember reading in some info the company provided that they made about $1.50 on some of those lottery cards. At 10-15% royalty, they are making $2.00-$3.00 on a $20 card. This agreement gives them a better margin than the older agreements. $10 and $20 was the size of the cards they sold in the Kansas and Iowa lotteries. They sold like hotcakes! It won them Lottery Product of the Year. Sci Games put a kibosh on the program and developed their own cards, while locking up EGMI with a long term licensing agreement. Shrewd business move on Sci Games part. We develop our own card to keep all the profit, but if it doesn't work we fall back on the EGMI licensing agreement. I look at Sci Games as a wild card. If their cards don't compare well to EGMI, than it could give us a nice pop if they decide to market our cards. The advantage to the Sci Games card is the cost of production of their model. It's inherently cheaper, but it doesn't have the ease of use of the EGMI card. At least that is my opinion. I thought we would have got a nice pop from the market after this news, but I guess the crisis is weighing too much on peoples minds and wallets. Well on a relative sense at least it's better than being deep in the red. Hope I'm not reading the tea leaves wrong here, but I really like our prospects with this one. Good luck to all.
Exactly what I've been waiting for. Now waiting for news on CEO and I would favor a reverse split, given profitability and exposure on a larger exchange. That is why I made this one of my top positions. It's neck and neck for my number one. They have a unique product and it is well liked from past testing in Scientific Games trial markets. Too bad Sci Games decided to leave EGMI out of the picture and develop their own product. Another positive quarter with growth and we'll hopefully be above the dollar mark.
It's nice to see the buying, but I was really hoping for some news following the COB and board approval given there were still some outstanding items they detailed in their conf calls they have not briefed shareholders. CEO, reverse split, additional partnership were all mentioned as events to be clarified. Lord Steinberg approval I thought was a factor that may have slowed down some of the announcements. I was hoping for news prior to next Q report so I'd have something to trade. Still 1.5-2 months to go.
Interesting snap back in Ags relative to other commodities.
Subprime is done, but the prime and alt-a resets worry me the most. These are in the core of middle/upper middle class communities. Next year will be a doozy for the economy due to the negative wealth effect here.
Alot of investors here have been in this sector due to inflationary pressures. Any of you concerned about asset price deflation?
Understood. Their growth has been significant, but doesn't seem like market has been paying excessively for growth. I was more than happy with getting the 30 FWD PE before earnings and decided to exit. I didn't get in as low as you did, but have been in and out since the low 1's and bought in upper 1's. Exited half in the mid 3's and sold rest in upper 4's, low 5's. It was my big gainer for the year, so far. Made up for some stinkers since it was around a 15% position. Your boundaries are roughly where I am, though I've got nothing to sell.
Depends on the sales number. My reasoning for getting out was the high variability in their month to month numbers. I took my gains after several good monthly increases as the stock could disappoint if the numbers decline. The growth from the last several months was getting baked into price. I liquidated completely and missed the bump following the good earnings.
Not upset at all. Bring it on.
A bit suprised by the lack of volume given yesterday's volume and announcement of the approval. I guess approval was deemed a layup by most investors.
The Lord is in the Manor. I'd expect the CEO to come soon. I'm sure Steinberg has someone already in mind. He's had plenty of time to think about it.
Anyone attend the shareholder's meeting and can provide some feedback? Seems like there was strong volume today following the meeting. I'm all for Lord Steinberg & crew joining, but I hope they don't ignore the promotions/educational/toys segment of the business.
If you're going to trade the stock remember this:
"The market can stay irrational longer than you can stay solvent." - John Maynard Keynes
I keep that quote on my desk, when I'm puzzled by the way markets move.
Most of the time when I post, I'm just thinking out loud in stream of consciousness. If I started to talk out loud, people around me may wonder "what the f?"
I got over it because they may have a lot of current maturities in their debt even though the receivable facility may mature annually, there is an annual option to roll it. The company is still increasing sales, so rolling the debt is not as much a risk. Took some time for that to sink in, my head is very dense. Who knows maybe I'll even make this a bigger position once all the info gets past the wax in between my ears.
I've converted to the dark side over the last two days. Hopefully that's a darker shade of green. Made it a 2.5% position, adding 150% from original shares.
I'm in agreement now. Financing problems with growth is not necessarily the worst problem to have. If mgmt does hit their guidance than I guess the risk is priced in at the moment, leaving a good amount of upside. If they seek additional financing outside their receivables financing than margins could be squeezed into low 40's/high 30's. Still good. To meet the lower end of sales guidance they'll need about 25% revenue growth for the last two quarters. They had 15% QtoQ last Q. A 10 fwd PE will be a welcome sight and may be a lot to ask even in this market.
Prime + 2% isn't necessarily cheap. It's not the 10% they have on the converts, but still not cheap. If they are almost tapped out on their a/r line, how do they fill orders once they reach the limit. I'm trying to point out that financing can be a constraint on their growth. Not the worst problem to have, but still a problem. Shmolton mentioned financing their PO's, but they take a haircut on the purchase order. How much for VBDG, I'm not sure. Could be anywhere from 5-15%. So now we have increased sales, but our margins are squeezed a little due to financing costs.