Saturday, August 4, 2007

GameTech International

GameTech International is a NASDAQ listed security that has been trading in a range between $6.84 and $14.20 over the past year. With 12,579,910 shares outstanding, a recent price of $8.20 gives a total market capitalization of $101,519,870. While there are certainly larger companies, GameTech International has definitely earned its place in the pack. Last year, GameTech International created $0.35 in earnings for every share outstanding.

GameTech International is currently priced by the market at 24.80 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, GameTech International could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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