Thoughts on the future of PartyGaming (PRTY.L)

[Zygote]

The price drop today was influced by yesterdays announcement that pokerroom may become a large competitor if they go through with a 500m buyout and because some analysts (notably Lehman brothers) changed Party's rating to underweight mostly due to party's recent "outperformance".

IMO, Pokerroom, even with a larger database of players, is no threat to party, but i could see why an analyst could think it is.

Also, party's recent performance was due to a true value increase in the worth of the stock, initated by a genuinely great update report that tells of a great past and predicts a bright future. In addition, Party will be pumping tons of new promotions come the new year, which i dont doubt will have a greater postive effect on their site versus any other sites attempting similar efforts.

This may be a good oppurtinity to take advantage of the analysts spin on the market and buy some more party. I know i'm at least holding on to my current shares, but might buy a few more in the next day or more. Any thoughts?

[solucky]

I bought empire and party. Sold empire for 245 and bought for the money party for 110 /images/graemlins/smirk.gif

[BradleyT]

Anyone who plays knows that party is a monster that can't be stopped. All you have to do is monitor the player numbers.

[Sniper]

Party is going to have a blowout 4th Qtr!!

More info on PokerRoom buyout...

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The biggest online poker news of the day is that Pokerroom.com, the third largest online poker company in the world, could be taken over by the European online sportsbook Bet And Win for the cool sum of half-a-billion dollars.

Negotiations are well underway, and have reached a formal stage with a "Memorandum of understanding" entered into between Bet and Win and Ongame.

Ongame is a Swedish company, and one of the biggest Internet success stories to date. The company was started by two young Swedish entrepreneurs who decided to build their on in-house poker software. The result was Pokerroom.com, which has grown at an astronomical rate in the past three years to become the third-largest poker room behind only Party Poker and Poker Stars.

If Bet And Win is successful with their takeover bid the Pokerroom.com network would become the second-largest in the world. The potential deal is reminiscent of Sportingbet's purchase of Paradise Poker, which has so far worked out extremely well for all parties.

Bet And Win are based out of Austria, and recently their share price has quintupled from 14 Euro a share all the way up to 72 Euro a share. They're clearly looking to expand into the North American market, and acquiring a well-run product like Poker Room would be a big step in the right direction.

Reports that a Costa Rican sportsbook had offered to buy out Empire Poker for $5 million and a complimentary pina colada were immediately dismissed as nothing more than a bad joke...


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[Zygote]

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Party is going to have a blowout 4th Qtr!!

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do you mean blowout in the good or bad sense?

[Sniper]

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Party is going to have a blowout 4th Qtr!!

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do you mean blowout in the good or bad sense?

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Very Good!

[TGoldman]

With Party expecting huge growth in the 4th quarter, CRYP is getting pounded (again) today. For those that regret not buying in before CRYP's previous strong earnings growth report, now might be a great time. On P/E basis, CRYP is at about the same value now at $18.50/share as it was back in September at $16.75/share (back then they had EPS of $1.16, now they're at $1.32). If I recall correctly, the low back before their previous earnings report was around $15.50. That's a multiple of about 13.4. Using the new earnings multiple would put a base of around $17.65/share which CRYP appears to be heading towards. At close to that level, CRYP appears to be an exceptionally strong buy, especially if they also are experiencing a similar boom in casino/poker revenue this quarter that Party is expecting.

[Tzak]

Now that party has BJ,they could be taking away customers from cryp.They may be having a few problems with BJ whores and have changed some of their terms for some of us.The chart looks like it'll go to 15.Party uses their own software but what company also profits from their upbeat forecasts/Any collaberators?Tzak.

[Sniper]

[ QUOTE ]
With Party expecting huge growth in the 4th quarter, CRYP is getting pounded (again) today. For those that regret not buying in before CRYP's previous strong earnings growth report, now might be a great time. On P/E basis, CRYP is at about the same value now at $18.50/share as it was back in September at $16.75/share (back then they had EPS of $1.16, now they're at $1.32). If I recall correctly, the low back before their previous earnings report was around $15.50. That's a multiple of about 13.4. Using the new earnings multiple would put a base of around $17.65/share which CRYP appears to be heading towards. At close to that level, CRYP appears to be an exceptionally strong buy, especially if they also are experiencing a similar boom in casino/poker revenue this quarter that Party is expecting.

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We'll see if Interpoker's current 12 days promotion has any impact on the number of users on crypto.

From what I can see, they did not receive much, if any, benefit from the Party shakeup.

[TGoldman]

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Now that party has BJ,they could be taking away customers from cryp.They may be having a few problems with BJ whores and have changed some of their terms for some of us.The chart looks like it'll go to 15.Party uses their own software but what company also profits from their upbeat forecasts/Any collaberators?Tzak.

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Party is still primarily a poker room that also now happens to offer blackjack. At least right now, I don't imagine too many internet casino gamers depositing at party solely for their blackjack. CRYP on the other hand is primarily a casino business that happens to have a poker room attached. I don't see too much casino/casino competition between CRYP and Party right now.

[TGoldman]

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We'll see if Interpoker's current 12 days promotion has any impact on the number of users on crypto.
From what I can see, they did not receive much, if any, benefit from the Party shakeup.

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You're right, CRYP probably won't benefit much from the Party shakeup. My comment about nice 4th quarter earnings was more a cyclical thing in which internet wagering usually peaks in winter quarter.

[Sniper]

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Party is still primarily a poker room that also now happens to offer blackjack. At least right now, I don't imagine too many internet casino gamers depositing at party solely for their blackjack. CRYP on the other hand is primarily a casino business that happens to have a poker room attached. I don't see too much casino/casino competition between CRYP and Party right now.


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This is not accurate...

Party is a gaming company... they have a poker room, casinos, and a bingo site.

Party's casino's include Planetluck and Starluck; and AceClub (Empire's casino) licenses their software.

In their latest release they said poker revenue was up to $2.7 mil/day and casino revenue was up to around $1 million/day (a significant jump from before they added the blackjack link to the poker room). Party is also running a blackjack competition at the moment, I suggest you review just how much blackjack the top players in that contest are playing!!!

CRYP is a software company!