Optimal Group Extends Option Expiration Date

Optimal Group Inc. (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 (IRBT)

Disclosure: Long OPMR

Comments

[DaveinHacke...:]

How is iRobot a competitor of OPMR? WowWee makes things like talking Elvis heads and flying toys; iRobot makes vacuuming robots and IED disposal robots.

Also, the "issues" you cite, "Executive management salaries, DOJ fines" cry out for some elaboration.

2008 Jul 15 01:37 AM

[Badger The ...:]

IRBT makes ConnectR. WowWee makes Rovio.


On Jul 15 01:37 AM DaveinHacken sack wrote:

> How is iRobot a competitor of OPMR? WowWee makes things like talking
> Elvis heads and flying toys; iRobot makes vacuuming robots and IED
> disposal robots.
>
> Also, the "issues" you cite, "Executive management salaries, DOJ
> fines" cry out for some elaboration.

2008 Aug 07 02:23 AM