party gamin shares hit or miss

blinko

party gamin shares hit or miss, i think they are up from there floatation price do people think this is a bubble waiting to burst or a stella investment

bowlhead99

Floated at 116p on Monday and well oversubscribed, so on the first day of conditional trading by the big institutions they were at 129 (+11%). On thursday they went 'unconditional' so joe public could buy them, and they went from 140p to 150p ish. Then Friday, they were up all day again until late afternoon when people took their tasty profits for the week, dropping them back to 145.

Clearly lots of people "want in" and if you were to go in now, I can't see you losing your investment particularly soon. Of course Party are not going to keep their monstrous market share - but the market is getting bigger. What will wipe out your shares to well below the offer price is if the US govt. clarifies their position on making online gambling illegal. Or, the shares will go through the roof if they make it definitely legal! Neither of these events are likely to happen in the next year or so.

People are rightly concerned about investing in dot com companies, especially the ones that have never made profits. One of the biggest casino companies around, Harrahs, owns Caesars Palace etc, has 100,000 employees, and is valued at $8 billion or something. Party Gaming has 1100 employees and is now valued at $10 billion... seems incredible and unrealistic! But Party generates lots of cash. Millions of customers all over the place giving them a cent or two for every hand played from the comfort of their home. The cash comes in faster than Party can spend it, and they'll pay real dividends.

Personally I'm in. It's not the safest thing to put your money in, but then no shares are- there are lots and lots of factors to consider when buying and I don't have space or the time to detail why I decided to buy. Don't buy these shares to invest for your kids' future education. But if you are looking to 'invest what you can afford to lose' in something, why not bet on the casino, instead of betting in the casino.

Moorepart

Got on the bandwag on 29 June @ 133.88p, seems to be rolling along nicely at the moment.Up at £1.54 now, seems like the market likes this share:j

The US is not the only market, china now has a 100million users online and GMC are targeting this market with got2bet.com,

They are aquiring an number of diffrent portals allowing them to expand in asia and europe.