Electronic Game Card, Inc (fka EGMIQ)

[SAMNOTSAMUEL]

EGMI - valuation

The assumption is 2009 earning will exceed 2008 by 40%. We are assuming that will happen.

40% growth is not a cake walk long term. This company hopefully will do 40% growth long term.

I suggest that right at this time many expect 2010 earnings to exceed 2009 earnings by more than 50%.

There is no realistic guess for 2011 except higher before tax anyway.

My argument is the market often likes hard numbers. 2010 is all soft numbers. Soft numbers merit a lower future pe.

My contention is $1.60 is not cheap when all the numbers are soft in nature.

I am not claiming $1.60 is expensive though. Stock price potential though is sensitive to news.

If the company performs over time, we may get to $4, $5, $7, $10 who knows.

sam