Short PRTY Buy WSEX
 

In a classic reverse of the traditional hedging manuever I wish to put some money down on my belief that a nonraked poker site will triumph.

Can anyone else help me with this idea? I suppose first order of business would be to find out the respective ticker symbols.

Since this is my idea I would like to kick back and relax, and explain it to anyone who doesnt understand.

[img]/images/graemlins/laugh.gif[/img]

Re: Short PRTY Buy WSEX
 

I suggest you start by exploring the problems with the WSEX model, specifically, why it doesn't scale very well.

Re: Short PRTY Buy WSEX
 

Party = PYGMF.PK on the pink sheets or PRTY.L on the London Stock Exchange.

I'd like to hear your reasoning for why you think WSEX is a good purchase. It's not like this rakefree business is going to be making them a ton of money. Also, it doesn't matter if they run the "best" poker site model in the whole industry, Party spends more on marketing than they do.

Re: Short PRTY Buy WSEX
 

Ok first off have you guys played there yet?

My confidence comes from the following:

1. They have a great sportsbook already going, and this is how they can offer poker for "free"

2. The guys running it are S-M-A-R-T

3. Customer service is perfect

4. The site is already picking up steam, has an incredible London Tournament, and everyone is hearing about it

5. The software is great and getting even better (compare this and the customer service aspect to Party)

6. Our traffic is highly valuable, they should be paying US not the other way around, this is a visionary approach and will be the ultimate business model for online poker

If you know of some huge problems with their model please let me know. If they have huge customer service/server issues they will probably decide if its profitable to continue offering no rake poker, I believe the traffic through sports betting and even blackjack will make their model successful. So tell me what Im missing here, thats why I posted! ;-)

Re: Short PRTY Buy WSEX
 

[ QUOTE ]
2. The guys running it are S-M-A-R-T

[/ QUOTE ]
Could you go into this more? Have they worked together before? What is so special about them that you decided to mention this?
Thanks.

Re: Short PRTY Buy WSEX
 

Kagame, i know you're a good poster. But posting this in this forum is similar to posting whether to fold KK preflop in HSNL.

For one thing, there was a similar thread about two days ago.
For another thing, these guys seem to do trading based on numbers/trends/tangible items. Not gut feelings or instinct.
What is WSEX's traffic like? I was on the other day and there were a pretty small amount of players. It seems like 2+2 is jumping on this wagon which doesn't help any sort of longevity for a large player base.

Also, is this just a promotion? If so there is no point. Also, shorting is a lot more than just betting that a stock is going to go down sometime in the future apparently.

Most importantly, is WSEX traded?

And most, most importantly, don't leave this forum after making this post. I made a similar post about shorting GM a couple of weeks ago. As it turns out the info here may be more valueable over your lifetime than any other forum on 2+2.

Re: Short PRTY Buy WSEX
 

I just created the thread to stimulate conversation

Why do you find Party's lack of consideration for the customer to be something a company in a highly competitive landscape can get away with?

I find new alternatives fascinating as someone heavily into the poker scene. I would think we as poker players would be well situated to have a clear opinion here.

Is there traffic enough for everyone? Yes. Will Party stay dominant over the LONG run with considering current developments? I can see s strong case for their downfall and am willing to play Devil's Advocate.

I wouldnt post things like this if I found other threads to participate in that I found particularly interesting. Sometimes there are great threads, but its empty enough here for the discussion this might create, I think.

Oh and Im not leaving

???

Re: Short PRTY Buy WSEX
 

kagame,

Thanks for this post.

I believe you make excellent points. Just yesterday, a close poker-playing friend of mine explained to me how disgusted he is with Party-- especially compared and contrasted against Stars.

Your suggestion to pairs-trade PRTY and WSEX greatly reduces overall risk while providing a potentially stunning return in the event both legs of the trade move favorably.

Mr. Now wonders out loud how much risk you take on to generate some very impressive returns in the:

Marketocracy Trading Contest with 2+2 Members
http://forumserver.twoplustwo.com/sh...Number=5349500

I achieve bumping you down in the rankings by the narrowest of margins recently. We are neck-and-neck. I continue to fine-tune my holdings weekly, in a market that features some very mixed signals. I do not sit back.

Thanks again for bringing this potential trade to attention.

Re: Short PRTY Buy WSEX
 

I agree with you that party sucks, i've wondered why anybody plays there ever since they got rid of empire/rakeback (but this is back now?). They haven't really done anything for their customers in the 13 months that ive been around. But they're still #1 in the market for some reason. It has to be the marketing.

I would be more interested in the legislation knocking their price down than WSEX. If a real bill looks like it might pass congress, i'm sure their stock will take a hit.

As long as they have close to their current player level and have that little button on the side that says "blackjack", I think they'll make a pretty nice profit. Also the WSOP is coming up and i'm sure that wont hurt them.

Re: Short PRTY Buy WSEX
 

How about that little $25 solicitation that comes up when you login, the one for the lobbying effort?? They must perceive an incoming scud.