#1
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Anyone notice PartyPoker stock lost -33% of value the other day...
trades on UK market...
Seems investors were surprised of the first ever quarter over quarter decline in revenue (June qtr vs March qtr)... It makes some sense that results were down due to summer but this hasn't happened before... FYI, here are some comments by major Wall Street investment house analyst: Partygaming (IL/A): A poor opening hand, but remains flush with cash ************************************************** ****************************** * PartyGaming's maiden H1 results validated our concerns about rising * * customer acquisition costs and the lack of visibility on future industry * * growth rates. With regard to the former issue, our calculation suggests a * * 15% increase in CACs in Q2 2005 vs. Q1 2005. With regard to growth rates, * * the muted start to the (historically strong) Q3 period, following the first * * sequential quarterly decline in Q2 2005 (-4.8% vs. Q1 2005) has clearly * * dampened optimism about growth potential. Despite this, we were surprised * * by the magnitude of the share price move. Whilst we retain our cautious * * view of the sub-sector, as evinced in in our recent report (Party pooper, * * August 22 2005) the level of cash generation is such that the stock - ex * * any legal shock - now looks fairly well under-pinned. In view of this, we * * see relatively limited downside from current levels and retain our IL/A * * rating on the stock. * ************************************************** ****************************** Growth rates moderating faster than anticipated In our initiation report on PRTY, we also analysed a number of precedents for growth in gaming stocks, concluding that the growth profile for 'new' gaming products tended to be characterised by rapid growth rates, followed by a sharp slow-down after two - three years. It is frankly still too early to tell whether the data released by PartyGaming today signals the start of this stagnation, or whether it simply reflects an extension of the seasonally slower Q2 period (especially in view of the fact that the televised WSOP started around three weeks later than it did in 2004). What is clear, however, is that growth rates do seem to be moderating faster than the market initially anticipated, with the Q2 2005 poker revenue showing the first sequential quarter-on-quarter decline yet experienced by PRTY (-4.8%). We had previously forecast 4% QoQ growth for poker revenues in 2Q2005E, reflecting an aggregation of two data points: 1) Empire's poker results, which showed QoQ revenue growth of 8.3%; and b) PokerPulse data for 2Q2005, which (according to Unibet) showed a decline of 0.9% over 1Q2005. The PRTY result suggests a modest decline in market share for the company. |
#2
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
Party poker shrinks by 4.8%
Empire poker grows by 8.3% Stocks plummet! Shows what the insiders really understand about their investment... [img]/images/graemlins/cool.gif[/img] |
#3
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
[ QUOTE ]
Party poker shrinks by 4.8% Empire poker grows by 8.3% Stocks plummet! Shows what the insiders really understand about their investment... [img]/images/graemlins/cool.gif[/img] [/ QUOTE ] I don't think you are looking at this the right way but correct me if I'm wrong. Party is much bigger than Empire. As an example: 4% of 100,000 is a lot more than 8% of 1,000 in total amount. That 8% growth may only account for .1% of the total where as that 4% loss could account for 1% of the total. See where I'm going? It's just a though. I'm pretty sure the insiders don't have a feel for the industry but I'm pretty sure they know the numbers better than I do. |
#4
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
2 billion wiped off the value of the company.
Life is great [img]/images/graemlins/smile.gif[/img] |
#5
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
stock market is rigged.
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#6
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
That'll teach 'em to gamble on the London Stock Exchange.
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#7
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
looks like party just gave out another beat, just not in the traditional sense
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#8
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
Even mainstream tech media like slashdot noticed -
http://games.slashdot.org/article.pl...187&tid=10 RB |
#9
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
Mike Sexton's net worth just got cut by $100 million...
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#10
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Re: Anyone notice PartyPoker stock lost -33% of value the other day...
[ QUOTE ]
[ QUOTE ] Party poker shrinks by 4.8% Empire poker grows by 8.3% Stocks plummet! Shows what the insiders really understand about their investment... [img]/images/graemlins/cool.gif[/img] [/ QUOTE ] I don't think you are looking at this the right way but correct me if I'm wrong. Party is much bigger than Empire. As an example: 4% of 100,000 is a lot more than 8% of 1,000 in total amount. That 8% growth may only account for .1% of the total where as that 4% loss could account for 1% of the total. See where I'm going? It's just a though. I'm pretty sure the insiders don't have a feel for the industry but I'm pretty sure they know the numbers better than I do. [/ QUOTE ] You're looking at it wrong. |
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