Reply to Sweetie1516 post 9717 & Chancetosee post 9719
Sweetie1516. I encourage you to make postings of opinion, but please back them up with fact. Otherwise, your posting has no legitimacy. It is no different than a person stating "This stock is going to $10 because I just think it is." You are not helping us understand the company any better. If you have a negative thought, it may be helpful for all of us. Please tell us follow up your post with fact based answers to the following:
1. Explain your statement "messes up time after time".
2. Explain why game cards are a joke.
3. Why is the game card not a growth business?
Chancetosee post 9719
Your post was interesting and helpful. I missed the SEC filing you linked to for the original MOU with ChinaLot. I think that builds the case from my last posting. The filing you cite was made June 17, 2009. My post cites a signed agreement on Oct 13. This shows a kicking of the tires by both parties with an MOU and both parties making a decision that this was a mutually profitable business opportunity that is formalized with a signed agreement.
I do not know the answer to your valid questions regarding KD's Q3 cc comments. I can only speculate that he needs to put his best foot forward publicly, but he was adept enough to keep his private thoughts private, which was he always had one foot out the door. Hopefully we will all get clarity next week.
Maybe EGMI gave up the 60% of something that wasn't really selling very well. Maybe EGMI calculated how many units would need to be sold for them to recover the $500k investment and the the months or years that may take and decided it was not going to achieve the 40% ROE and 21% ROA they currently achieve. Perhaps KD and his team realized they have a huge pipeline of possibilities in their core business that this is not worth it. Maybe EGMI had enough exposure to poken's board and entire team that EGMI determined it did not want to partner with this management team for whatever reasons.
Maybe Poken type technology will be embedded in cell phones soon, thus this is not a sustainable business and a revenue stream that will die. If so, why bother even if it is a revenue stream for three or so years.
I don't know the answers to those questions, but I am wiling to project that EGMI's management team is older, more seasoned, knows the North American market better, and is more visionary than a team like poken whose founder appears youngish.
