MOTLEY FOOL LIKES ONLINE GAMBLING PROVIDER'S PROSPECTS

11 April 2008

Top growth accolade for next five years


Online gambling software developer Cryptologic, now based in Dublin, has long been a fave of the popular financial news 'zine Motley Fool, featuring in its 'Hidden Gems' category, and this week the publication went a step further in tipping the company as a top growth stock for the next five years.

Motley sees Crypto delivering 30+ percent growth over that period, after the company released Q4 earnings per share which have tripled (see previous InfoPowa report) to 36 cents a share on $4.3 million net income, convincingly overtaking analyst predictions of 21 cents a share.

The Motley Fool analysts comment that despite a difficult economic downturn in the business, Crypto's cash flow has remained steady, positioning the company strongly - especially if the legal situation in the United States should improve at some future stage.

The report predicts that the company has avoided confrontations with the US authorities and could re-enter the US market should a more favourable legislative climate develop. However, it cautions that the consensus among industry analysts is the UIGEA will not be overturned in the immediate future, although it is unlikely to survive in the long term.

Meanwhile, Cryptologic has hewed strongly to its strategy of diversifying into other geographic markets, especially Asia and Europe, where it has built up a successful and resilient business.

Online Casino News courtesy of InfoPowa