About Electronic Game Card. Inc.

Electronic Game Card Inc., (EGMI) , develops, produces and markets the proprietary technology that is the "Electronic GameCard" which can be programmed to suit a variety of gaming and promotion applications. EGC's client base is across the $ 100 billion global market of state and national lotteries, Gaming and Casinos, Indian Gaming and the expanding sales promotion and incentive markets. EGC develops sales and marketing relationships with agents globally and has a joint venture with a major lottery focused US listed corporation which has purchased 10% of the EGC common equity stock.

July 2005, the Public Gaming Research Institute (PGRI) named the Electronic GameCard(TM) as a 2005 Lottery Product of the Year during its conference in Las Vegas. The PGRI award recognizes the importance of new products to the growth and continuing success of worldwide lotteries

************** Recent Quarterly Report **********************

The company has recorded $ 201,172 of revenues this quarter and $353,317 for the year to date. Sales and Marketing costs were $30,642 compared with $96,609 in the comparable period for 2005. This reflects a reduction in attendance at trade shows and events during the period. General and Administration expenses were $246,880 compared with $258,578 for the same period in 2005. This expense was lower than the comparable period as we continued to make economies during the period. Consultancy costs were lower at $128,375 compared with $208,000 in the previous year due to expenditure incurred in the prior period to resolve some quality control problems in the production process. Salaries and payroll costs were $ 91,325 compared with $155,264 in 2005 there were less employees in the period. Operating loss increased to $1,907,067 compared with $824,058 for the comparable period due to interest and finance charges related to the fund raising in April 2005 which were $1,416,322 higher than the comparable period. Operating losses excluding the interest charges were $495,220 compared to $718,451 in the comparable period of 2005.

*****************************************************************


Company has hit the mark with its smart card. State lotteries are starting to buy it up with continued orders. The technicals look good, the news looks good and the product seems to make sense. Its well worth throwing a few dollars at this one IMO!

I couldn't find up to date financial data on this company... nothing since DEC 05 on yahoo... can you give me a link to where I can view the reports???...

Sorry, I look at technical charts and stated news and SEC filings (When they exist). I look for stock dilution as the enemy more then company finances. If I use fundimentals then I would be talking about big board companies. Quality stocks for example: INTC, VLO, GE that I also believe in. Since these are PK and BB stocks I feel that is not the governing factor?  I have made alot of money on these due to the "perception" that they have something not the reality. In fact  most high volume trading occurs on these stock are due to just that.  Most if not all of these companies when they reach reality, then its too late already! JMHO

I agree with most of the points you made... BB and PK stocks do have a lot more to do with speculation than anything, but I find the best comapnies are the ones who have financial documents available... I've seen some quite financially solid stocks on the OCTBB...

I guess it's all risk and reward... If I did invest, which I don't (for some god knows why reason) I wouldn't have a problem investing in OCTBB stocks, but without financials I'd stay away... but thats the accountant in me showing lol

Well the stocks chart is getting real weak here breaking down in RSI,SS,hitting the lower BB etc... If news does not come out soon then I will start getting a little worried. This could be a great entry point or signs of some adverse fundimental changes in the company. I can't believe with re-occuring sales that some news of the sort would not be coming out soon? This is the waiting time that I hate. To see if these cards will be expanded to other states and reorders will continue, if only I had that crystal ball????

I think next leg up will take us into the .50-.55 zone. Chart looks very interesting. Im watching closely on tuesday for entry opportunity.

EGMI - Electronic Game Card
Finance .Yahoo.Com - Company info

http://finance.yahoo.com/q?s=EGMI.OB

Read the latest history on this one for the past few months.  They are producing revenue and have recently signed agreements that demonstrate their products have appeal to the gaming industry.

More importantly they have significant room to expand as the word gets out.  They have a product and it is selling.

Bill

I have 4000 shares and have a limit order for 1600 shares this morning.  Wish I had additional money to buy more - dog!  

Guess I'll have to wait until some divs come in.

Don't want to sell my other stocks - they're good too.

A few of the headlines indicate that sales are expected to occur, as a result of signed agreements, in Q3 06.

I'm expecting to see higher revenue and earning for EOQ Q3 and EOY 06 as a result of their efforts.  If this materializes as expected there will be momentum moving into Q1 07 that will build on the signed agreements from Q3 06.

What better way to promote your products than with signed agreements and renewal orders for your product.  The lotteries are certainly looking to expand the consumer's game playing experience.

Bill

2003 EGMI Prediction - proves successful

Lorne Weil, chairman and CEO of Scientific Games Corp., said he believes that electronic game cards represent a novel way to spark sales of instant games.
“We are confident this product will appeal to progressive lotteries seeking to
introduce electronic digital instant tickets,” he said.

For a complete extract from the journal see the attachment.

The extract appears in the October 2004, Public Gaming International Journal.

Source: http://lib.store.yahoo.net/lib.....inancial%20Trends%22

Lottery Orders and Value to EGMI and Lotteries since 2004

Orders        Cost/Card   Revenue
929,000      $20.00        $18,580,000.00

                ********** Charting Observations ************

     Notice that though the stock has backed off of late when looking at technicals, there is a clear bi-monthly pattern showing up. This could be very significant if it relates to sales of reorders. If this continues as a predictible pattern then we will see significant upside again in Oct! This pattern started in April when it seems like the company had turned its fortunes around.

     Also the RSI has penetrated the 50 trendline twice since then. The first time there was significant upside that followed. I don't think there will be anything stopping it from happening again.

      The lack of news may only be a reflection of the "end of summer" effect. That may have slowed sales but will surely increase into the Fall with forthcoming news of reorders and hopefully more states added on to the roster! The longer negative drag of the ROC (14 days as opposed to 7 last time) may signify this end of summer effect but again should turn positive by Oct 1.
   *** I think its important to note that when the ROC (daily interval) does go positive then we could be running up again! That may be the switch to turn it on!

   One more thing, Over the next several month look for any signs of growth in the news other then reorders such as new products, new state lottery orders or even casino contracts or this stock may be heading for trouble!  JMHO    

With the recent signing of the Indian Casinos I think this is a momentum play that will continue.

Other Indian Casinos will see this as an opportunity and will buy into the game cards as well.

Still a buyer of EGMI.

- Bill

Bill,

I emailed Roger Holdom@electronicgamecard.com and got this response to the no news issue/lower share price, Let me know what this means to you,

Hi Claus,

We are aware if the situation and are working hard to create appropriate stories. However as supplier our customers retain the right to privacy for their own commercial reason.

However be assured as soon as we have a story we will maximising the visibility to the investment community.

Best wishes

Roger