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meow_meow 07-14-2005 02:04 PM

merits of WPTE.....
Re the Doyle takeover funnyness:

Who in their right mind would value this company at $700M? For comparison, this is about 20% of Party's market cap (maybe a bit less).

The profit they make from the show, merchandise, etc.. is very close to zero, so all of the value has to come from the online site, which just recently launched.

So yeah, the brand will help them sign up new players and compete with the big boys....
Oops, they don't take U.S. residents. Party says 80% of their players are U.S. based...

Any thoughts?

michiganfan9 07-14-2005 11:45 PM

Re: merits of WPTE.....
I thought it was very it was very interesting especially the next day when the company said that information wasn't very credible. the stock pulled back its 49% gain the previous day coming down about 4-5%

Dan Mezick 07-15-2005 08:20 AM

Re: merits of WPTE.....
This is manipulation pure and simple.

You will note that this occurred during the main event of the WSOP, leveraging the 110% media attention focused on poker's biggest event. There are other properties to consider in the mix-- do your own thinking along these lines.

This was a 100% leveraging of the media focus on poker to pull off a PR & stock-inflation price coup whose execution was second to none.

The plan for this offer likely included some "investments" in WPTE securities (probably call options) before the offer, and the sale of same immediately afterward.

To anyone that plays options for a living: I'd love to see some astute analysis of the call strikes and the open interest before the offer announcement date.

There is a profit of millions, perhaps tens fo millions made on this deal ... as the stock-market fish swarmed to the "chum" of the well-planned, well-timed, well-executed (and absolutely free) news coverage and PR.

Who's a player?

Al P 07-15-2005 08:47 AM

Re: merits of WPTE.....
Party said 87% of players are U.S. based and 90% of revenues are from U.S. players.

WPTE owners don't understand that other countries don't have the disposable income that U.S. citizens have. Europe is close but that market is already currently being sought by all existing sites.

Sniper 07-15-2005 11:49 AM

Re: merits of WPTE.....
There are no options currently traded on WPTE.

meow_meow 07-15-2005 01:06 PM

Re: merits of WPTE.....
As mentioned, no options trading.
Also, no unusually high volume prior to the "offer".

I mean, it really looks like a pump and dump, but I think the SEC is all over that kind of thing these days. The absolute most that you could have "got away with" has to be less than 50k shares, given ave. daily vol. of around 500k, and that only works to a profit of around 300k - not that much for such a risk....

Anyway, what I really wanted to do was start a discussion about the actual value of this company, not the takeover bid...

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