why is partygaming down 11% today?

[Taylor Caby]

seems like very good news on the legislation front today (at least the best in awhile). what gives? are investors skeptical that party will either A) not be able to get a liscense in the US if/when it is allowed or B) not try?

these are the only things I can think of.

Thanks,
tc

[TheMetetron]

This was expected for a while now. It's been in the price during that time.

[cheet]

I think the U.S. market is too huge for Party to ignore. I don't see why they wouldn't be allowed a license since they've never broken any gambling laws. They stopped taking US action as soon as the UIGEA was signed. The U.S. can't punish foreign companies and prohibit them from entering the U.S. market just because the U.S. had different laws in the past than the companies country of origin.

I believe trading for the London Stock Exchange ends at 11AM eastern time or so, perhaps this announcement has been popular enough for investors to notice? I don't know if the press conference was televised but I haven't seen the story on any other sites besides gambling911.com yet.

[Evan]

I just took a look at the story and I don't really have an answer.

One possibility is that a single investor (institutional, not random guy) decided to sell off their position today for whatever reason.

I'm also not really familiar with the stock at all so there may be other news I'm not aware of. This would also include non-public news that got leaked to someone who then sold off or shorted a big position.

[xx44]

[ QUOTE ]
seems like very good news on the legislation front today (at least the best in awhile). what gives? are investors skeptical that party will either A) not be able to get a liscense in the US if/when it is allowed or B) not try?

these are the only things I can think of.

Thanks,
tc

[/ QUOTE ]

The stock price has doubled in the last few months. Smart money buys on the rumor and sells on the news.

[NajdorfDefense]

[ QUOTE ]
This was expected for a while now. It's been in the price during that time.

[/ QUOTE ]

[hlacheen]

CryptoLogic is surging today... but I think that might have to do with the new contract with WPT.

[BradleyT]

On CNBC they said MGM (Which I bought 2 days ago btw) and HET both had "upside potential" if the bill gets passed. I don't really see it. Too late to market.

However co-branding with the existing big sites may have some value.

[john kane]

a lot of people sold at the right time, prty shouldn't any higher than 58p-60p.

i had sold the rest of my holding 2 days ago at stop loss of 53p, ignorant people have been buying on the hope that prty will get back into the US, imo it is very unlikely, and should trickle down to mid 40s over the next couple of months.

it will only shoot up on short term positive news, but long term we wont see 70p+ for a long time imo.

[Harmonica]

UK gaming stocks down sharply after new US gaming legislation proposed




LONDON (Thomson Financial) - Partygaming PLC and other UK gaming stocks were down sharply in trading today after US Congressman Barney Frank introduced legislation that could benefit American gaming companies at the expense of overseas firms.
Frank, chairman of the US House of Representatives' Financial Services Committee, wants to introduce a Bill to lift the American ban on online gambling transactions. The legislation would allow licensed operators to apply for an exemption to the ban providing they have safeguards to stop underage gambling.

Partygaming was down 12.8 pct to 51 pence, while Sportingbet PLC was down 3.24 pct and Global Gaming Technologies PLC fell 5.6 pct. 888 Holdings PLC fell 2.3 pct to 118 pence.

The downturn in UK shares follows recent speculation that prohibitions on online gaming would be eased.

One trader noted that the selling of UK stocks was overdone, as the proposed legislation concerns security controls but does not constitute a comprehensive ban against British internet gaming firms. tf.TFN-Europe_newsdesk@thomson.com gh/slm COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

I nearly fell out of my chair when I checked my stocks. I dont get why this as had a bigger impact on Party's stock price. Also thought since Party was rid of the US market that they could no longer effect its stock price, think like one poster said that maybe someone has sold a load of stock. I personally think this stock as got potential. Isn't Party licensed by the very fact that its listed on the UK stock market, which doesn't it mean that it pays some taxes to the UK?.