WPTE

[1800GAMBLER]

It seems that WPT's online card room (wptonline.com) news went overlooked and then all this Doyle crap has gotten in the way.

The price is still falling after the bid but this online site looks great, will have great marketing and great promotions to WPT.

[ QUOTE ]
"They have great growth potential for their online business, but that just launched last week. WPT has a great brand and high earnings potential because it can leverage the television show, but it's still unproven. My growth projection calls for 75% growth in earnings per year. I believe if it can capture just 1% of the world-wide poker market, that would add 50 cents incrementally to fully taxed earning per share. Now it's not taxed. When you combine online gaming with all of its other initiatives, I think a 75% growth rate is achievable and may even be conservative." (Mangini doesn't own shares of WPT Enterprises; ThinkEquity Partners doesn't have an investment-banking relationship with the company.)

[/ QUOTE ]

So decent company with a medium-long shot chance at becoming the size of partypoker? Thoughts?

[Ipodkid]

I put 40% of my non retirement risk funds into wpte this month, so far im feeling pretty confident about them, my thinking it the website is only 1 more reason to own this stock, I see 3 years down the line online poker being legal and regulated in the usa and wpt site nearly as big as party if so were rich [img]/images/graemlins/smile.gif[/img]

[meow_meow]

[ QUOTE ]
I put 40% of my non retirement risk funds into wpte this month, so far im feeling pretty confident about them, my thinking it the website is only 1 more reason to own this stock, I see 3 years down the line online poker being legal and regulated in the usa and wpt site nearly as big as party if so were rich [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]

This seems like a not-so-great idea.
The only way WPTE is worth its current price is if it can tap the US market, and I can't see any congress wanting to legalize online gaming. I'd put money on the other side - that online gaming laws in the US will be tougher in 3 years.

Subtract out the potential of the online site for a second, a you have a company with a $400M market cap and trailing revenues of $17M. So it's trading at more than 20 times trailing revenues (and had a net loss in the past year).

So basically all of the value is in the potential of the online poker business. Sure, the software looks nice, but as already mentioned, nobody is playing there yet. There are already a number of sites based in the UK and elsewhere, targetting the non-US portion of the market (which is only a 15% of the pie to begin with).

[StickyWicket]

one word for you:

diversification.


When it comes to over-concentrated positions in stock (as this one most likely is), three things can happen:

1) the stock can go up, and you make money
2) the stock can stay relatively the same price-you make no money
3) the stock goes down, and you lose money.

2 out of 3 of those things are bad. As this is true with all investment positions, being overly concentrated puts you at a higher risk.

You may want to consult a professional with regards to an independent evaluation as to how concentrated your position in this stock is in relation to the remainder of your portfolio---including your retirement investments.

FWIW.

Sticky [img]/images/graemlins/heart.gif[/img]

[elena_elphie]

I think as a poker player, particuarly if poker forms a substantial portion of your income, you should be reluctant to invest in poker stocks. This is because if there is a downturn in poker you will be doubly hit, not only will your stocks go down, but your income will drop at the same time, so you are more concentrated in one industry than you might think.

On the other hand you might be something of an expert since you understand the industry better than the average investor, but I still don't think it is worth the risk, at least for me.

[Sniper]

What is their edge?

There are many online poker rooms, why will players flock to the WPT site and put it past many of these already established sites?

You can hear an interview with the CEO on Wallst.net

[ttw22]

[ QUOTE ]
There are many online poker rooms, why will players flock to the WPT site and put it past many of these already established sites?

[/ QUOTE ]

Wasn't it WPT advertising that brought Party into the #1 position? If anything, shouldn't WPT advertising and branding do even better?

[Sniper]

[ QUOTE ]
Wasn't it WPT advertising that brought Party into the #1 position? If anything, shouldn't WPT advertising and branding do even better?

[/ QUOTE ]

WPT advertising may have helped jumpstart Party, but I don't think it was the only thing. Their initial AOL like send everyone in the world a CD with your software campaign at the beginning also played a huge factor in its early days.

[laserboy]

According to the Party Gaming prospectus, 87% of their business comes from the US. How will WPT Online fare against the hundreds of other poker sites when they are shut off from 87% of the market?

Check it out for yourself: WPT Online

[Al P]

If the WPT site allowed U.S. players I still wouldn't play there, there's no reason to.

Just ask yourself, "Do I really need another place to play online poker?".