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CryptoLogic Cashes in on Online Poker

TORONTO – As reported by the Globe & Mail: "CryptoLogic Inc. is cashing in on the on-line poker craze. But with the stock already up sharply, should investors be holding or folding?

"Shares of CryptoLogic -- a Toronto-based provider of software to the on-line gambling industry -- have doubled in the past six months, propelled by solid quarterly results and the public's growing fascination with poker, both on the Internet and in televised tournaments such as the World Series of Poker.

"With more than 200 poker sites worldwide generating annual revenue of about $2-billion (U.S.), there's a growing pot of cash at stake for CryptoLogic and others vying for a piece of the action.

"'On-line poker is expected to be one of the primary growth drivers for CryptoLogic over the coming year,' Paradigm Capital analyst Gabriel Leung said yesterday in initiating coverage of the company with a 'bu'y" rating.

"Rising broadband usage, increasing confidence in Internet security and the ease of gambling on-line compared with travelling to a casino all bode well for on-line poker, he said.

"…Investors don't need any convincing. Yesterday, the shares gained 60 cents (Canadian) to close at $36.86 on the Toronto Stock Exchange, up 40 per cent in the past 12 months. On the Nasdaq Stock Market, they added 35 cents (U.S.) to $29.52…"

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