During the week, 5 of the stocks continued their downward trend in price with Cryptologic & Starnet falling by 6.5% and 4.5%b respectively. The online casinos are yet to recover from the Las Vegas Casino $1B fiasco.

Most of the earlier losses are being recovered with the major averages recording gains of 2% or more for the week. Custom Tracks recovered from a low of $US30.125 to close the week at $US36.50. Custom Tracks remains a huge bargain at these levels given the potential of this company.

Cryptologic closed at $15.15 for the week, 46% below its recent high with a P/E of 5.7 and earnings per share of $2.75 . This company is a misnomer - an Internet company that actually has earnings, a low PE and revenues are increasing over 54% annually. Management believes the stock is undervalued and bought back 25000 shares on June 16 under a normal course issuer bid. On that day the stock hit a low of $14.50

Under the issuer bid, which expires on May 12, 2000, Cryptologic has the right to buy back an additional 400,000 common shares. We believe that Cryptologic will enter the market this week to support the shares if it breaks through the psychological $15 level.

Starnet added two licensees and also got an analyst buy rating with a target price of $30 to $35 in 12 months from John Dutton.