|Online casino software company CryptoLogic Inc.'s stock has dipped below its 52-week low and is continuing to fall, which, says one analyst, is hardly surprising given the company's recent problems. |
This has been a turbulent year for CryptoLogic, whose stock has lost close to 70% of its value since early January.
On the Toronto stock exchange last Thursday, CryptoLogic stock was down 10 cents to $8.20, below the 52-week low of $8.25.
“You won't find many people buying until they turn things around,” said Brian Kinstlinger, an analyst with Sidoti & Co.
CryptoLogic cut its guidance for 2002 in mid-June, citing continued pressure from US financial institutions on Internet gambling.
In the US, credit card issuers have rejected gambling transactions because gamblers have reneged on their credit-card payments, and because of the efforts of states such as New Jersey and New York to clamp down on Internet gambling transactions. Online payment alternative PayPal has also announced that it will no longer accept gambling transactions.
This has left CryptoLogic struggling to find other forms of payment that gamblers can use.
Now CryptoLogic is focusing on growth in Europe, where there are no such credit payment issues.
Kinstlinger rates the company at neutral but has cut his target twice since the two senior officers resigned last month, and the target is now at $5 (US). The stock closed at $5.20 on the Nasdaq Stock Market last Thursday.