Electronic Game Card, Inc (fka EGMIQ)

[riskanalyst]

I'm a bit shocked at the tepid response to the Roth update and the contract. However, it could be because of the lack of visibility of this Moscoe Group. While everything sounds impressive about them, there certainly is little information out there on these guys. EGMI booked .10 in FY08, company guidance for .14 in FY09 and Roth estimate of .20 for FY10. That's an over 40% growth rate. PEG Ratio of .22 based on FY09 earnings. This new contract apparently kicks in the 4Q of this year. Also in the 1Q CC, they mention Thomas and Friends should be shipping in time for Xmas in the UK market. The last part of this year should be a nice window into our future. This would be a buy for me if this wasn't already 55% of my portfolio. I believe a 20 PE for this company is a conservative proposition. I'm convinced this should be a $3 stock right now.