cryp getting crushed today...

[meow_meow]

on news that Betfair may dump their client in favour of an in-house solution.
Which begs the question - anyone know what proportion of crypto's traffic comes from Betfair? (never mind that poker only accounts for about a third of cryto's revenues).

[kiffl]

I think Crytologic is getting very atractive in the $15 range. Betfair can't count for that much of their trafic.

[laserboy]

FWIW, they are ranked 18/33 traffic wise among Crypto sites and 5/9 among Crypto poker sites, according to Online Casino City.

http://online.casinocity.com/poker/betfair-poker/

And as you stated, only a fraction of their revenues come from online poker in the first place. It seems they contribute a relative pittance in revenues compared to the 20% haircut in market cap today.

[Sniper]

Motley Fool came out to defend their Hidden Gems pick... by their (very rough) analysis Betfair accounts for somewhere between 3-9% of CRYP total revenue.

Here's the link...
Cryptologic gets dealt a bad hand (http://www.fool.com/News/mft/2005/mft05080925.htm?source=eptyholnk303100&logvisit=y& npu=y)

[TGoldman]

CRYP continues take a beating. This stock is starting to look like a good value play now. Anyone disagree?

[Sniper]

[ QUOTE ]
This stock is starting to look like a good value play now.

[/ QUOTE ]

Is this based on anything other than.. the stock price is down? If so, I'd be interested to hear your analysis.

As an aside I heard that they released some earnings guidance today, talking about a slow summer.

[TGoldman]

[ QUOTE ]
[ QUOTE ]
This stock is starting to look like a good value play now.

[/ QUOTE ]

Is this based on anything other than.. the stock price is down? If so, I'd be interested to hear your analysis.

[/ QUOTE ]
It's based on the fact that they're now trading at a P/E multiple of about 16. The "business and software solutions" sector has an average P/E of 25 and the "gaming activities" sector has an average P/E of 48. It looks cheap compared to their competitors, but it gets better. They have no debt and $6.27 in cash reserves per share. With a current share price of $18.5, that means over 30% of their share price may be discounted as a "free cash rebate" upon purchase. I don't see any of their competitors with that strong of a balance sheet. Now, I didn't know that about their earnings guidance for summer quarter. That is bad news, but I think the market has been unfairly harsh to this stock resulting in very attractive valuations.

[Sniper]

Does anyone have any idea what rake% cryp gets from the sites using its software?

[TGoldman]

[ QUOTE ]
Does anyone have any idea what rake% cryp gets from the sites using its software?

[/ QUOTE ]
I asked this question to the investor relations department and recieved this in response...

[ QUOTE ]
Due to confidentiality with licensees (and also competitive) reasons, we can't speak to these percentages. The majority of CryptoLogic's revenue is of a recurring nature or more than 90% of our total revenue. This is why we focus on a select group of major international customers, who have the trusted brand, established player base and marketing commitment to thrive in a global, competitive online gaming environment. The more games, tools and services we can provide our licensess, the more we can help them attract and retain loyal players and grow a profitable online business, which we benefit from that growth.

[/ QUOTE ]