|
|
|
|
#1
06-03-2005, 06:03 PM
|
|||
|
|||
Re: Party IPO - The Smartest Poker Players in History?
[ QUOTE ]
Anyone understand why a very high cash flow business like PartyPoker would IPO? It seems like a lack of sophistication on their part. Why endure the hassles of regulation when your current cash flow exceeds what you would reasonably make off your ownership assets even if you liquidated on Day 1 and invested well. [/ QUOTE ] Matt, The IPO is a no-brainer if they can really do it at a valuation of $10 billion: 1. $10 billion is over 26 times last year's earnings, so they are getting a good price. 2. I think they are selling at the optimum time--the explosive growth of poker can't continue forever, eventually the weaker players lose too much money and quit. Also, if the U.S. bans internet poker, they will lose a huge chunk of their customers in the blink of an eye. 3. Liquidity. 4. Diversification. 
|
|
#2
06-04-2005, 12:48 AM
|
|||
|
|||
|
Re: Party IPO - The Smartest Poker Players in History?
[ QUOTE ]
The IPO is a no-brainer if they can really do it at a valuation of $10 billion: 1. $10 billion is over 26 times last year's earnings, so they are getting a good price. 2. I think they are selling at the optimum time--the explosive growth of poker can't continue forever, eventually the weaker players lose too much money and quit. Also, if the U.S. bans internet poker, they will lose a huge chunk of their customers in the blink of an eye. 3. Liquidity. 4. Diversification. [/ QUOTE ] Ok makes sense. Who the heck would buy that though is beyond me. Reminds me of shorting Palm when it IPO'd. Matt
|
|
#3
06-05-2005, 11:31 PM
|
|||
|
|||
|
Re: Party IPO - The Smartest Poker Players in History?
[ QUOTE ]
[ QUOTE ] The IPO is a no-brainer if they can really do it at a valuation of $10 billion: 1. $10 billion is over 26 times last year's earnings, so they are getting a good price. 2. I think they are selling at the optimum time--the explosive growth of poker can't continue forever, eventually the weaker players lose too much money and quit. Also, if the U.S. bans internet poker, they will lose a huge chunk of their customers in the blink of an eye. 3. Liquidity. 4. Diversification. [/ QUOTE ] Ok makes sense. Who the heck would buy that though is beyond me. Reminds me of shorting Palm when it IPO'd. Matt [/ QUOTE ] And google
|
 |
|
|
Hybrid Mode
