Short PRTY Buy WSEX

[ColdCaller]

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PRTY is a poorly run business with a terrible affiliate model doomed to outpace revenues over the long haul.

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Please explain this more. It sounds like you're saying their affiliate payouts will be greater than their revenue, but I know that can't be right.

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Affiliate costs will outpace marginal revenues in the future, not total revenues. [img]/images/graemlins/smile.gif[/img]

Not even PRTY is run that poorly.

As for the above poster: The profit margin is huge, yes, but that is the case with every other online poker room as well. Like I said, I think short PRTY is a very long-term play.

I also like being short GM.

[Falang]

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On Dec 31 2005, PartyGaming had 1,189 employees... 791 were in customer service (and that number has since increased to over 900)

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Quantity is not the issue. It's quality.

100 form letters pasted to my by Ikma Hababjablalbueargar < 1 email from 'Josh' at PokerStars answering my question in two sentences he typed out himself that answer specifically the question that I asked.

[buffett]

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other than coke dealers and exxon

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i agree with you're point here, so i apologize for being a nit but...freakonomics did a good job debunking the myth of dealer profitability, and MSFT and AMGN are two cos that spring quickly to mind that have far superior margins than XOM

[mother_brain]

i read freakonomics and know what you mean, but independent coke dealers have a great margin, like 75%+ easily(as long as they dont get high on their own supply)

The point is party is doing just fine and WPEX has shown no signs of fazing them. If a competitor does come up with a scheme that starts to take their market share, the poker industry is one that lets them change styles very quickly and with very low cost. Whether they stay on top is purely up to them, I dont think anybody can take it from them because of the posistion they have already established.

[Sniper]

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On Dec 31 2005, PartyGaming had 1,189 employees... 791 were in customer service (and that number has since increased to over 900)

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Quantity is not the issue. It's quality.

100 form letters pasted to my by Ikma Hababjablalbueargar < 1 email from 'Josh' at PokerStars answering my question in two sentences he typed out himself that answer specifically the question that I asked.

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Party is committed to training their CS reps.
Stars has at least 1 cool guy [img]/images/graemlins/wink.gif[/img]
WSEX has no revenue stream from poker to either hire or train CS reps, so even if they have 1 cool guy now, it doesn't scale!

[Newt_Buggs]

I disagree that party is well run. As I have brought up more than once ever since party's major software overhall the new software has had a major flaw that causes it to slowdown some computers after multitabeling for a certain amount of time (and as most of you probably already knows multitabelers pay almost all of the rake). After almost two months party, a billion dollar corporation, still can't get their 2d software working correctly. I know that this problems has reduced my MGR by thousands of dollars, and from the poll below it looks like its a pretty widespread problem. I'm simply shocked that it has been two months and not only has party not fixed it, but from the sound of the emails they have replied with they have no plans to.

software bug