AsianLogic (ALOG) - Asian Gambling Growth (ALOG)

A new thread to announce the admission of AsianLogic onto AIM. This share had a placing price of around £1.11 raising over £40m with a market cap of over £120m.

This is high risk, high reward but the regulatory risks are severe. Singapore and Malaysia are its key markets and these have high regulatory risk associated with them.

WEBSITE: http://www.asianlogic.com/

COMMENT AND ANALYSIS: http://www.netbetblog.com/2008/01/asian-login-floats-on-aim-1231-million.html

A new company, Asian Logic plc, has joined the ranking of gaming companies quoted on the London exchanges. ALOG is its AIM ticker.

Given its regional position it might be one to watch for readers of this blog. Asia is certainly a growth market for gambling. One of the more interesting developments is its video streaming casino technologies.

It has a high valuation of £123.1 million but is well positioned for future growth. This is no AIM tiddler of the PLW and LNG ilk but neither is it PRTY standards just yet.

For example, I doubt anyone reading this will have heard of their online sites:

‘Megasport Casino’, ‘Dafa888’, ‘Asian Casino’, ‘Zipang Casino’ and ‘Tila Casino’

Revenues from online casinos are currently running in excess of $6.0 million per month and have been growing. That is revenues and not profits however. In 2006 revenues generated from online casino activities constituted approximately 78 per cent of the total revenues in 2006. That is not a high figure given the valuation of this company. LNG pulls in revenues like that (but without the profits I expect).

According to the admission document that can be found HERE [large PDF] profits come in at just a couple of million. This means ALOG is sitting at a fairly large multiple. Given the competitive nature of online gaming it is asking a lot for this share price to double any time soon.