Optimal Group Extends Option Expiration Date

Jul.14.08 | About: Optimal Group, (OPMR)

Optimal Group Inc. (NASDAQ:OPMR) last week extended the expiration date for options granted to its directors and officers to 4/29/2014 from 4/29/2009 at an exercise price of $7.10. For these options to be worthwhile, the price of OPMR would have to increase at a compound annual growth rate of at least 21.5% from its closing price of $2.30 on Friday over the next six years.

Since the granting of the options back in April 2004, Optimal Group acquired WowWee, a unit sales leader within the personal robotics market. ABI Research forecasts that the personal robotics market will be worth $15 billion by 2015 [source]. Electronics.ca Publications reported that the educational and entertainment robot submarket, which WowWee dominates, is expected to reach $3.9 billion by 2014 [source].

  • OPMR 2008E Revenue: $230M
  • OPMR 2008E EBITDA: $11M

Optimal Group Inc. subsidiaries:

  • WowWee (personal robotics)
  • Optimal Payments (electronic payments)
Issues: Executive management salaries, DOJ fines.

Competitor: iRobot (NASDAQ:IRBT)

Disclosure: Long OPMR