Let me first say the things that attract me to this stock are: Increased Profit Gaming industry Possible takeover Unrelenting purchase of shares by the Chairman
EBet recently announced a profit upgrade for YE 30/6/12 of $2.3 million NPBT.The previous year excluding impairments and the business acquisition cost of Odyssey Gaming $1.13 million was achieved.So the company has doubled profit in the last year.I estimate the full year results will show an EPS of 0.8c putting the company on a PE Ratio of roughly 5.5.As a comparison competitors AGI trades at a PE of 25 and ALL a PE of 17. As the share price has not really moved anywhere in relation to the companies improved revenues and profits it presents itself as a possible takeover target.EBet currently has an exclusive agreement with WMS gaming from the States and they may be interested. The Chairman continues to buy on market and his average overall entry price is much higher.He has been purchasing since 1999. I have also visited the local clubs and viewed the products offered by EBet which includes ticket analysis and also the WMS gaming machines.They run an analysis system that can link all the machines at the outlet.Their systems product can be installed on all machines in the outlet including different manufacturers. DYOR
ITQ Price at posting:
70.5¢ Sentiment: None Disclosure: Held
