Re: What are you talking about "if the market tanks".
I mean, if it tanks "again". I believe the low on the S&P was 666 during the latest tank. We may be testing that bottom again in the coming months, and there's no guarantee it will hold.
"...I do not see where you get .13 tax adjusted."
I start with Roth's estimate of .20 eps, and discount by 35% to back in taxes. Assuming their earnings start to ramp, they will be paying real taxes in 2011 at the rate they're burning their NOL. It doesn't hurt to prepare for that in your model, as Roth does.
"...I don't see any reason for a blow out quarter until the 4th quarter when the Moscoe connections align with the release of the Thomas GameCards. The company anticipates Thomas going out the door fourth quarter in time for Xmas sales. If Moscoe uses their relationships for Thomas distribution, I see lightning in a bottle."
Good point about the Moscoe connections. I'm hoping we can drive a lot more than just Thomas and quizcards through that channel. We could sure use some licensing deals with major sports leagues about now.
"...the China lottery has some legs. That could have major impact once it is a done deal."
That could be a huge deal, but wondering about the margins we could expect from the Chinese lottery, when even the U.S. lottery was so tight that a sub-$20 card wasn't viable for the states.
