Replies to post #5577 on Electronic Game Card, Inc (fka EGMIQ)

[iancassel]

They will likely do that without anything accretive that has already been announced this summer. They will grow revenues 70% in H2 of this year, and net income 30% in second half of this year. At the run rate of Q3/Q4 09', Probably can trip over themselves and do 18c with current game card deals..thats not including Thomas the Tank goes out Q1, any FM moscoe, any china, any korea, any casino wins etc..

The whole point is buy before the street wakes up to the opportunity, not after. The street has not awoken, but it will..

[riskanalyst]

You're missing the big picture. All small companies have lumpy sales. Its the nature of them being small. Contracts make a substantial impact and are difficult to smooth. The growth rate is a projection over a period of time, so you may get 10% one quarter and 70% another. I am also waiting for the revenue figures to look better, but am satisified with managements ability to close deals. They have missed in the past on some opportunities, but they have definitely delivered on others. They are not going to hit 100% on all their potential deals. However some of these deals are a long time coming. Look at Thomas the Tank, that's been out there for a long time and is only just going to hit the stores in the coming quarters. Look forward, but review backwards to what has brought us here.

[wmthecommoner]

Recent contract with Moscoe Group and Minimum Royalties with Korea are just a few that will impact 2010. Since much of the business has a lead time, I remember at CCs that normally when asked they typically say they have a backlog of about 60% already booked, so while the other 40% are contracts to get and fulfill during the remainder of the year---I think their forecast model and track record give confidence to the 2010 guidance. And at last meeting NYC Yyonne said to one attendee that the Sovereign Card business was exceeding expectations, so I do not factor in alot of risk in the $1.40 for 2010.

That said, the opportunities for MORE Incremental business are everywhere and I believe management is agressively and professionally persuing multiple paths to making a pps of four or more by year end highly possible.