Investing in PartyPoker Shares

[alexoi]

Hey Guys,
What do you think about buying PP shares, they are down right now, and maybe some of you financial experts could tell me what shares you would suggest me to buy, or how you would suggest me to invest my money ?

Thanks for all your help, Alex

[UncleCollins]

Do not invest in PP. Their shares are down for a reason and they are not going back up anytime soon.

[SlowHabit]

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Do not invest in PP. Their shares are down for a reason and they are not going back up anytime soon.

[/ QUOTE ]
I don't think this is a legitimate argument to not buy PP shares since EVERY stock is down for a reason. The question is "what is the reason PP is down" and what are the chances of this reason being solved in the near future.

And how do you know if they are not going up any time soon (and how long is exactly is "any time soon" since it is so subjective)? What if the foreign markets (Asian, Europe) are better than expected? What if there's an bill/admenment that allows institutions to transact gambling funds within the next two years? What if the Justice Department can't figure out an efficient way to force banks to regulate this new law?

On that note: Since there's too many "what ifs" that can't be answered correctly, don't buy PP.

[john kane]

i just bought $4K's worth at 27.25p. It sucked they carried on going down to 26p, but i think, as a long term investment, its worth a pop.

Why?

Well, will they go down much more? No, imo, becuase they have a very simple profit system, which wont change, and market price reflects their earnings pretty well imo.

Will this earnings increase over time? Of course, yes. they will expand into more countries and they profits will increase.

The risks simply arent their imo. They got out of the US, tey wont go under - they make way too much money, and the future looks fine in the countries they are currently in. I think the foundations they have laid have made their reputation too strong to simply get an worse than the already are.

They went down a 10% odd today due to traders getting leaked reports that thursdays statement wont be great. but im not buying this for the next few weeks, im in it for the long haul.

[SlowHabit]

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Well, will they go down much more? No, imo, becuase they have a very simple profit system, which wont change, and market price reflects their earnings pretty well imo.

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Can you write in complete sentences of the above opinions because I'm having a hard time figuring out what you're trying to say? (I mean it in a good-hearted manner, not as an insult).

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Will this earnings increase over time? Of course, yes. they will expand into more countries and they profits will increase.

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You do not know for sure if their earnings will increase or not. Other countries are not as rich as the USA. Other countries do not have people who have money to gamble with. Other countries do not have financial aids for college students to gamble with.

You also have to realize that the European customers have their own poker websites already. Party Poker got 80% of the profits from Americans, which means, in order for Party Poker to be as profitable as before, they have overtake almost, if not all, of the existing European poker websites.

[ QUOTE ]
The risks simply arent their imo. They got out of the US, tey wont go under - they make way too much money, and the future looks fine in the countries they are currently in. I think the foundations they have laid have made their reputation too strong to simply get an worse than the already are.

[/ QUOTE ]
How do you know this? What concrete evidence do you have?

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They went down a 10% odd today due to traders getting leaked reports that thursdays statement wont be great. but im not buying this for the next few weeks, im in it for the long haul.

[/ QUOTE ]
I hope you enjoy the ride [img]/images/graemlins/cool.gif[/img]

[john kane]

[ QUOTE ]
Well, will they go down much more? No, imo, becuase they have a very simple profit system, which wont change, and market price reflects their earnings pretty well imo.

[/ QUOTE ]
[ QUOTE ]
Can you write in complete sentences of the above opinions because I'm having a hard time figuring out what you're trying to say? (I mean it in a good-hearted manner, not as an insult).

[/ QUOTE ]

Sorry, i was in a rush. My general point is that ever day they are churning out profit in a very simple manner - people log on, play poker, they make money.

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Will this earnings increase over time? Of course, yes. they will expand into more countries and they profits will increase.

[/ QUOTE ]
[ QUOTE ]
You do not know for sure if their earnings will increase or not. Other countries are not as rich as the USA. Other countries do not have people who have money to gamble with. Other countries do not have financial aids for college students to gamble with.

You also have to realize that the European customers have their own poker websites already. Party Poker got 80% of the profits from Americans, which means, in order for Party Poker to be as profitable as before, they have overtake almost, if not all, of the existing European poker websites.

[/ QUOTE ]

a) Indeed i don't know earnings will increase, but like 99% of trading decisions, i am speculating.

b) Many other countries have money to gamble with. almost all of europe, asia, australasia.

c) Indeed the figure is around 80%. The IPO was around 120p which shot up. It is now at 27p. 27/120 is 77.5%. So for it's share price to drop 77.5% due to losing 80% of its customers is a fair reflection. All it now needs to do is increase the number of customers. I think they will do this, given previously they focused most of their efforts on the US = lots of US players, now they will focus elsewhere = hopefully lots of new players. It wont be as big as before, but that is irrelevant, if they can double their current revenue in the next year or two i think there share price will reflect this and go up to around 45p.

[ QUOTE ]
The risks simply arent their imo. They got out of the US, tey wont go under - they make way too much money, and the future looks fine in the countries they are currently in. I think the foundations they have laid have made their reputation too strong to simply get an worse than the already are.

[/ QUOTE ]
How do you know this? What concrete evidence do you have?

Again I don't know, I am just making a judgement. If we all had concrete evidence then it would all be a lot easier. Take the entire commodities market for small stocks when drilling for gas etc.

[ QUOTE ]
They went down a 10% odd today due to traders getting leaked reports that thursdays statement wont be great. but im not buying this for the next few weeks, im in it for the long haul.

[/ QUOTE ]
I hope you enjoy the ride [img]/images/graemlins/cool.gif[/img]

[/ QUOTE ]

I may be completely wrong, yes it is a pretty big gamble, but hopefully come end of 2007 they will have more players = higher share price.

[john kane]

1 week ago i uttered these words:

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i just bought $4K's worth at 27.25p.

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price now: 30.75p

aka 12.8% rise

yawn....this stock market stuff is a piece of piss!

and my other stock i put $4K into which was my safe option has gone up 4.5% this week.

holla!!

[john kane]

oh i would only invest now for long term, i doubt it'll go up in the next month.

[Deuce2High]

Hey all,

Just wanted to bump this thread and maybe get a few more informative opinions. Seems like party stock right now is priced well and they are on a course to continue growing in other countries... The WPT/Party marketing agreement is also seems like a plus.

What are some more risks about owning a stock like this? Like, for example, could other countries start to ban online poker?

Just want to get this thread going again and get opinions here before I ask my broker about it.

[kimchi]

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maybe some of you financial experts could tell me what shares you would suggest me to buy, or how you would suggest me to invest my money ?

Thanks for all your help, Alex

[/ QUOTE ]

I'm no expert, but from your post I'd suggest you not buy any stock until you do your own research.

A poker forum is no place to get stock tips - actually, nowhere is a good place for stock tips.