Party over? PartyGaming stock TANKING badly

PartyGaming falls on fears fad is over
By Matthew Garrahan, Leisure Industries Correspondent
Published: September 7 2005 03:00 | Last updated: September 7 2005 03:00
The sharp growth of the online betting sector came to a halt yesterday when shares in Party-Gaming, the world's largest internet gaming group, fell 33 per cent.

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<!--endclickprintexclude-->The Gibraltar-based company, which generates 90 per cent of its profits from online poker, said customer growth had slowed while player retention rates and player yields had declined at rates "greater than expected".

The warnings prompted fears that the online poker fad had come to an end. PartyGaming has been the chief beneficiary of the craze, with shares in the group enjoying a meteoric rise since its controversial listing in London in June.

The initial public offering was launched in spite of fears about the legality of online gaming in the US, PartyGaming's largest market. But yesterday's warning sent PartyGaming shares below the float price to close at 105p, valuing it at £4.2bn. The group is set to enter the FTSE 100 today in spite of yesterday's share decline.

The downbeat assessment of PartyGaming's growth prospects hit the shares of rival quoted online gaming groups, with Empire Online falling 11 per cent and Sportingbet closing down more than 16 per cent.

However, 888.com, an online casino operator that has launched a £700m IPO, said its float plans were unchanged. 888.com is less reliant on poker than PartyGaming.

John Anderson, 888.com's chief executive, said: "In respect to our competition in the market place we have a very different business model." But by July 2005, growth compared with the previous quarter had slowed to 4 per cent.

http://news.ft.com/cms/s/db5a6244-1f3c-11da-94d5-00000e2511c8.html

Now that is an UGLY Tuesday!!!!!!!!!!!!!!!

<TABLE cellSpacing=2 cellPadding=2 width=278 border=0><TBODY><TR bgColor=white><TD class=MW1>Date</TD><TD class=MW1>Close</TD><TD class=MW1>Net Change</TD><TD class=MW1>% Change **</TD></TR><TR bgColor=white><TD class=MW1 height=22>6Sep2005</TD><TD class=MW1 align=middle>105</TD><TD align=middle> <NOBR>-51.75</NOBR></TD><TD align=middle>-33.01%</TD></TR></TBODY></TABLE>

Looks like reality has set in and is sticking around

as a business, the owners are still making more money per day than most make in a decade. Whether or not it is a good stock is a different story.

No doubt about that!!! The owners probably can't even get to the computer monitor due to the piles upon piles of money that they are raking in each day.

I don't even want to know what Party makes in a day

Storys also almost a month old and the reason it dropped that particular day was because they didnt achieve the number of new signups they had predicted...their revenues were still steady but in stocks any bad news causes a drop in price..especially a new, overpriced, speculative stock like party...it was way overpriced to begin with and today its at 92.....thier india owners made a quik billion dollars by offering this stock.....i love it when people say party has no reason to cheat players cus they are making money already.....since when is enough ever enough?????????

Are you implying that they are cheating?

The poker craze will crash. Over exposure

Meet the owners.......


Known as The Gibraltar Gang of Four, they are estimated to be worth as follows: Anurag Dikshit (net worth: $3.4 billion), Vikrant Bhargava (net worth: $1 billion). And the two other founders of the company Ruth Parasol (net worth: $1.8 billion), Russell DeLeon (net worth: $1.8 billion).

"Are you implying that they are cheating?"

No doubt in my mind

Well, if you look at the chart, let's say opening day volume was 375 million and the average opening day price was $139 a share, that's an instant $52 billion.

That's enough coin for every bean counter in the place to be skimming a billion & then some.

I was listning to a British talk-radio station the other day on the web and they were talking about gaming stocks. I cant remember the name of the corperation there were referring to, but they were advising listners to avoid buying the stock. The host said 87% of this companys cliets hailed from the U.S. and that on-line gambling in the states was going to be coming to an end real soon. I havnt heard any such talk around here about it, but he sounded confident that the U.S. gov was working day and night to end on-line gambling once and for all. I hope he was wrong..

well it sounds to me like the many...many...many post here about BAD BEATS...BOTS..COLUSION...CHEATING and everything in between might just be true as the subscribership declines...guess alot of non-RX's have found the same thing...

ProPokerPlayer said:

Meet the owners.......


Known as The Gibraltar Gang of Four, they are estimated to be worth as follows: Anurag Dikshit (net worth: $3.4 billion),

Click to expand...

Am i the only one childish enough to find this guys name absolutely hilarious.

As for the coming end to the poker craze; i think we are only at the beginning. People will always gamble and poker is one of those vehicles. It won't continue to grow as much as it has? no, it can't. but it will continue to grow. Lets remember that many long time poker players arent computer savvy. Its the younger pre 18 generation that will be more comfortable playing poker online and once they are old enough and have income, they will add to the current poker craze.

primetime21 said:

Am i the only one childish enough to find this guys name absolutely hilarious.

Click to expand...

Oh no, not by any means. It comes up every time his name does. I'd feel sorry for him, but with $3.4 Billion, I think he can deal with it.