Odds of Party collapsing on Saturday? - Page 9

DpR · #81 10-09-2006, 05:00 AM

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I missed the Trade Payable and Taxes Payable lines. So my idea that Trade and other Recievables might mean something is wrong since they are a wash as you point out.

The only factor you didn't mention is the amount they have earned since June 2006. So maybe with that they can cover the upcoming withdrawls. Still, it is unsettling to me that in June 2006 they did not appear to have the cash on hand to cover Player Accounts. That was not my understanding for how I thought they were suppose to be operating.

PairTheBoard

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I addressed all of these issues in my post in the Barrons thread. There was enough money in June to cover cashouts (they woudnt havfe paid a dividend). And they have at least $100M EXTRA right now to cover ALL cashouts.

EDIT: Think about this type of business. It would be very hard to bankrupt this business. It should theoretically be very nimble. Low overhead etc.

Org45 · #82 10-09-2006, 05:13 AM

Stop this panickmongering.

Onlinepoker is a gigantic goldmine.
10 % rake is daylight robbery.
Party has been the biggest goldmine.

Without US players Party would be a much smaller goldmine - but still, indeeed, a goldmine.

Org45

Kamakize · #83 10-09-2006, 08:32 AM

I have been saying this for a long time now.
with 85% of the players leaving party. That leaves 15%.

Now no one is going to keep cash on a site if you can't bet with it.

second with 85% leaving the 15% wont be that many and "prime time" will shift by 5-6 hours or more to around 2pm-7pm ET. Plus with elss players less games less mega-tournys people will go where the action is.

WHen you go to a live casino and see it empty do you go oh I will wait till more show up or move down the block to another room to see where the action is?

"Points store" - You will be playing for t-shirts, cups, hats. same ol same ol that you did with your party points.

I am sad to see it go. it was fun there.. but again I will go where the action is.

ttttt · #84 10-09-2006, 09:34 AM

They 'should' focus on rebuilding their customer base from other parts of the world until the US guys return.

mackthefork · #85 10-09-2006, 10:10 AM

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A well run company has cash on hand to cover the worst possible scenario, and has the ability to get more money if need be. And then they put the excess money to work.

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Not true at all, holding so much cash is normally a poor use of capital, however it would seem prudent to hold a lot in the case of an online poker site.

Mack

kylma · #86 10-09-2006, 10:38 AM

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PartyGaming owes its clients $192.6 million in liabilities and prize pools, while having only $132.9 million in cash and cash equivalents to meet that obligation.

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Even if people wanted to cash out more than $133 million, I find it likely that they can get a loan for a few millions, LOL

grandgnu · #87 10-09-2006, 10:55 AM

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PartyGaming owes its clients $192.6 million in liabilities and prize pools, while having only $132.9 million in cash and cash equivalents to meet that obligation.

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Even if people wanted to cash out more than $133 million, I find it likely that they can get a loan for a few millions, LOL

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You sir, are an idiot. Here is why:

1. You typed LOL
2. You typed it in ALL CAPS
3. You believe that someone is going to be willing to give Party a loan after they lose 85% of their player base and revenue stream and no longer look like they can remain profitable

mackthefork · #88 10-09-2006, 10:58 AM

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PartyGaming owes its clients $192.6 million in liabilities and prize pools, while having only $132.9 million in cash and cash equivalents to meet that obligation.

[/ QUOTE ]

Even if people wanted to cash out more than $133 million, I find it likely that they can get a loan for a few millions, LOL

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You sir, are an idiot. Here is why:

1. You typed LOL
2. You typed it in ALL CAPS
3. You believe that someone is going to be willing to give Party a loan after they lose 85% of their player base and revenue stream and no longer look like they can remain profitable

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Hi

I doubt they will have a problem regaining profitablity very quickly, and I expect they will probably grow through the European market and be back at the current position within 3 years, even if they permanently lose US business.

Mack

grandgnu · #89 10-09-2006, 11:02 AM

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Hi

I doubt they will have a problem regaining profitablity very quickly, and I expect they will probably grow through the European market and be back at the current position within 3 years, even if they permanently lose US business.

Mack

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I must disagree about your "very quickly" statement. If they cut off all U.S. players and go from 100 players down to 15, how many games do you think they'll have running?

Not many. Now you'll have a domino effect, as some of the Euro/Asian players leave Party for greener pastures and fuller tables or better table selection. So now you're down more than 85% of your player base, and so forth.

kylma · #90 10-09-2006, 11:15 AM

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3. You believe that someone is going to be willing to give Party a loan after they lose 85% of their player base and revenue stream and no longer look like they can remain profitable

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Yes I do. They will find the few lacking millions somewhere to pay the cashouts of the American fish.
The company is still worth it. There are many successful European sites already anyway