Partygaming gets maybe 60% to 75% of its revenue from the USA, so it will initially be a big hit to revenues and prices, but over the last 6 months it has expanded its overseas base by some 150% earning $150 mill in revenue! So given that were investing rather than playing poker, it is conceivable that they will be back to $1.6 billion of revenue within 2 years which would suggest a price of some £1.60 ! Much higher than the current low of 37p !!! Okay the dividend has now been removed ! which given the circumstances is expected.

So the portfolio is buying PartyGaming, since after the sale of ENODIS the portfolio lacks a speculative element, and given that Partygaming is the blue chip of online gaming stocks it represents a good speculative investment ;)

Portfolio Transaction - BUY - PartyGaming.com 3000 @ 38p 5/10/06

I am also going to issue more quick portfolio updates when the opportunity arises to take advantage of market updates between the regular main portfolio updates.

Nadeem Walayat

(c) MarketOracle.co.uk 2005-2006 - This Model Portfolio is provided for general information purposes only and not a solicitation or recommendation to enter into any market position, and you are reminded to seek independent professional advice before entering into any investments or trading positions.

Comments

09 Oct 06, 18:26

Re: Bargain Hunting - Buy PartyGaming
I too was wondering if its good to buy these online gambling stocks given the drop.

Mike

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