gambling stocks
 

With this boom in poker, I'm looking to put some money in stocks that are related and stand to benefit. Specifically, I've been looking at World Poker Tour Enterprises (WPTE) and Lakes Enterprises (LACO). LACO was former owner of all WPT stuff, spun off WPTE....

The short-term trends on these stocks looks good, and earnings seem to be nice but P/E ratio is through the roof. Does anyone have thoughts about whether these stocks are good buys considering the popularity boom of WPT and poker/gaming in general?

Re: gambling stocks
 

I own a lot of WPTE - they blew the roof off earnings yesterday. Analysts expected .01 per share, they came in at .05. Their website opens late April/Early May and should be a huge success. The P/E is low if you factor in the potential website earnings. I set a price target of $100 in 2 years. Go to their website and you can listen to their conference call from yesterday. I wouldn't buy LACO b/s WPTE drives LACO's earnings. LACO's other businesses are a drag. Hope this helps.

Re: gambling stocks
 

Personally I like Neteller - NTLRF.PK - better than any gaming stock right now. It doesn't matter which site becomes #1 - Neteller always wins.

Re: gambling stocks
 

http://yahoo.businessweek.com/bwdail...6684_db016.htm

WPTE is in position to make all time highs in the next few days. Should be at 30 within 3-4 weeks. Hope everyone is all-in. I am.

Whiz

Re: gambling stocks
 

[ QUOTE ]
Personally I like Neteller - NTLRF.PK - better than any gaming stock right now. It doesn't matter which site becomes #1 - Neteller always wins.

[/ QUOTE ] I agree. they are ptty much the house of houses. I am afraid of the 300% increase in past few months though, do you think it may be overpriced? also, how do I proceed to making purchases for stocks on LSE?

thanks!

Re: gambling stocks
 

You can buy it on the pink sheets in U.S.

Re: gambling stocks
 

Neteller and Sportingbet.com are still reasonably priced. SPBTF ( Sportingbet)is about 25 times this year's earnings, (fiscal year 7/05)and 18 times next. That's a bargain if the growth continues.

Read the other posts about WPTE, it's very expensive. be careful.

Re: gambling stocks
 

New high this morning $20.97.....$20 may be the next support level. Until further eveidence, I'll consider $17 the support.

Re: gambling stocks
 

Why just poker stocks? I’ve done really well the last couple of years with STN, SHFL, MGG and HET. They have dipped recently so this might be a good time to get in. I would not touch WPTE.


Disclaimer: Past performance is no indication of future results, yada, yada, yada…

Re: gambling stocks
 

can you share a little about those stocks? Don't even know what companies those are the symbols for... also, why the neg on poker stocks (WPTE)?

Re: gambling stocks
 

STN Station Casinos
SHFL Shuffle Master
MGG MGM Mirage
HET Harrahs Entertainment

All you have to do is look at the room rates the hotels are getting in LV to see why the hotels are making money. It used to be that the rooms were cheap in order to get folks to come and gamble. Now the rooms are 200-300 a night and people are gambling more than ever. SHFL makes the shuffle machines you see on BJ and poker tables. Harrahs owns the WSOP, the Rio and a bunch of casinos all over the country.

go to finance.yahoo.com if you want to read more.

Re: gambling stocks
 

The one that has done the best of late is Ameristar Casinos. ASCA is the symbol. Has gone from 29 to over 50 since Sept.

Re: gambling stocks
 

WYNN has nearly trippled in price over the last year and a half. but i would say that all of that was based on pure speculation. we will really see how it does in a months time when the casino opens its doors.

edit: he (Steve Wynn) is also building a new casino adjacent to Wynn called Encore due to open in '08

Re: gambling stocks
 

GigaMedia (GIGM) is an interesting one.

They are a Taiwanese holding company that recently purchased Grand Virtual with the intent of marketing online casinos to the under served markets of China, Taiwan, and Hong Kong. (NEWSFLASH: Chinese like to gamble). Grand Virtual provides the back end software and services to over 2000 online casinos in over 190 countries. Like the upcoming WPTE site, they do not accept action from the US.

The company has a market cap of about $70 million. But they have over $40 million in cash and investments on their balance sheet, no debt, and currently sells for below liquidation value.

They do have their share of problems. Their other lines of business are in the cutthroat B&M music stores and broadband internet access, and are barely profitable if at all.

The new management, however, has shown a commitment to cutting costs and restructuring the business. After years of unprofitability, the company now has two consecutive profitable quarters in a a row, largely on the strength of their recently acquired online casino business.

Downside risk is limited by its cash and physical assets... a Ben Graham type stock.

Thoughts?

Re: gambling stocks
 

CRYP - Cryptologic

Leader in poker/casino software! Just added to the S&P Comp. Index.

Re: gambling stocks
 

[ QUOTE ]
(NEWSFLASH: Chinese like to gamble).

They do have their share of problems. Their other lines of business are in the cutthroat B&M music stores and broadband internet access, and are barely profitable if at all.

[/ QUOTE ]

My thoughts? Orientals like to gamble, but mostly in person I would think.

And the unprofitable businesses they operate will drag them down.

Is this a pink sheet company?

Re: gambling stocks
 

Casino stocks have done well the past few years. Will they keep going up? Maybe. But remember, buy low-sell high.

If I was looking at gambling stocks, I might buy some ECP. It's Canterbury Park right here in Minesota. They seem to be finally getting their racino (slots, more table games, hotel) in addition to horses, poker, and a few table games.

However, a big casino might be approved for the Mall of America.

See? Buying gambling stocks is gambling. And the ones in Vegas and AC will not go up forever.

The best way to place the stock game is to go where nobody is yet. If you can't figue out where that is, buy mutual funds.