CryptoLogic (CRYP) Rising Ahead of Thursday's Earnings
CryptoLogic (CRYP) is a provider of software to online poker and other gaming sites. It comes out with its latest quarterly earnings on Thursday morning before the markets open.
The stock has been pummeled in the last year, down from $22/share to $7.65 today. It has consistently disappointed with earnings and has seen its one-time significant cash reserve droop from $75MM last spring to $36MM at the end of December.
The company has been signing deals to provide its software to several online sites in the last few months -- a key part of its strategy to get back to profitability. The company's current management was under fire from the former CEO who, a few months ago, was trying to force some turnover in the executive ranks based on the poor stock performance. That threat now appears to have gone away.
Investors are bidding up the shares of CRYP, which are up 16% today, expecting more good news on Friday. You can expect the stock to go higher still -- in a manner similar to what we've witnessed in Crocs (CROX) over the last 2 days.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider CRYP to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
Position: None.
Originally published in RealMoney.com on 5/5/2009 2:44 PM EDT
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