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#1
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Re: PartyGaming (PRTY.L) - 12/8 Trading Update Conf Call
From a recent NY hedge fund dinner
[ QUOTE ] Jim Chanos - Short on PRTY (PartyGaming). This company is part of the poker craze. It is based in Gibraltar and the background of management is questionable. Nielsen ratings are showing single-digit to double digit declines of poker TV shows (the only exception is ESPN's poker show). Chanos says this is often a leading indicator as it happened with Martha Stewart. Interesting story: He recently heard there is a firm in NYC who hires quants from Oxford and India to play online poker and make money for the firm. [/ QUOTE ] |
#2
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Re: PartyGaming (PRTY.L) - 12/8 Trading Update Conf Call
[ QUOTE ]
He recently heard there is a firm in NYC who hires quants from Oxford and India to play online poker and make money for the firm. [/ QUOTE ] This is almost certainly untrue. |
#3
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Re: PartyGaming (PRTY.L) - 12/8 Trading Update Conf Call
[ QUOTE ]
This is almost certainly untrue. [/ QUOTE ] I wouldn't doubt that you are right. Though I admire Chanos's "courage" for trying to make money as a short, I think I've read more than one Chanos analysis and thought he was misinterpreting some facts to make his argument. I wouldn't doubt he heard a juicy rumour and decided to run with it. I myself would never pay people to play online when it's so easy to program a computer to do so for free. |
#4
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Re: PartyGaming (PRTY.L) - 12/8 Trading Update Conf Call
Chanos is an extremely smart guy, but his CAGR over the last 15 years or so (documentation of which you can find on the MSN Berkshire Hathaway discussion board) is about +2%. He's made some terrific individual calls (Enron, Palm, etc.) with outstanding returns, but in aggregate the deck is stacked against him and all the other pure shorts.
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