Mr. Stock Pick is watching a speculative stock with huge upside potential, and I thought that I would share them with you. If you are unsure what a speculative stock is, check out my blog posted last week for a definition.
Speculative stock #1: CryptoLogic - NASDAQ:CRYP (US$) or TSE:CRY (CA$)
CryptoLogic is a software designer in the internet gaming market. They distribute the software to various online gaming companies, while retaining ownership(collecting royalties). I love the business model, pay once to build software and keep getting paid later. Cryptologic reports its Q4 2009 earnings report on March 2 2010. This is a key date for this company as they are in the middle of a balance sheet change and are cutting costs left, right and center. They have been in the red since the recession has hit as the industry is taking a beating, but if this company so happens to declare a profit on the March 2 date we can see this stock jump to the moon. The losses have been narrowing since Q1 2009 and I expect the same for 2010, if not narrow, to turn a profit. The company has 0 debt and pays a 0.01 dividend, which shows they are confident about their cash position.
CryptoLogic has a unique business model and management that I believe will make some right choices and bring this company back to profitability. Cryptologic's software is based for online casinos such as BetClik and Bet24. The revenue that these companies bring in from people playing their slot machines and other games are split up and given to Cryptologic.
Ladies and Gentleman place your bets!
These are brief explanations if you have any questions or would like additional information please contact me directly through the blog. Leave your email and I will try to respond quickly. These are just opinions of mine and you should not use a specific opinion to make an investment. Investors should be aware of the risk involved in making investments.
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