With a micro-cap valuation of just $188 million and a “penny stock” price, Elixir Gaming Technologies (AMEX:EGT) is a high-risk company.

In most all cases, I would avoid including a “penny stock” in Newsletter Watch; however, this is an exception due to the solid and long-standing reputation of the advisor behind the selection — Keith Fitz-Gerald.

Fitz-Gerald is the editor of Money Map Reporter and the New China Trader, along with the free Money Morning blog. It was in the New China Trader that I found Elixir Gaming Technologies, a speculative play on Asian gambling.

Fitz-Gerald, long considered among the leaders in the financial newsletter community, lives both in the United States and Japan and travels throughout Asian to uncover intriguing investment opportunities.

Elixir Gaming is a play on the growth of gambling throughout lesser-followed Asian markets. According to Keith, the company sells and installs slot machines in “frontier markets” such as Vietnam, Cambodia and the Philippines. It also sells table-gaming devices such as automatic card-verification machines, computer-based shuffling systems and RFID-gaming chips.

Fitz-Gerald does not minimize the risk in Elixir Gaming; rather, he calls the stock a 10-bagger — meaning the stock could rise 10 times in value — while concurrently warning that the issue could also go to zero.

“As a penny stock, it’s going to be a volatile ride. If you’re not able to stomach the fact that you could lose it all with Elixir Gaming, don’t get anywhere near it, . . .

For access to the full article, you must be a registered member - it's FREE.