Who pulled up that ladder?

[peterbirks]

I meant to take a small long position in Party yesterday afternoon, but forgot. The company's trading update was due out this morning, before trading opened. I'll try to get some money down at Finspreads, but I think the market makers will see that there's likely to be an uptick in the price this morning.

Party suffered in the market because of Empire's woeful update whereas, in fact, it should have benefited. The players that abandoned Empire went back to Party (at least in part). This was missed by the analysts.

Party's update this morning is mainly upbeat, although it looks as if they have lost a few big losers on Starluck I guess they have gone broke). Average revenue per active player on the casinos is $60. I think on poker it is about $25.

Anyone wanting to berate douche-bag Richard Segal can do the following:

9.20 am (UK time) Please call +44(0) 20 7162 0125 (UK) or +1 866 803 8344 (US)
Password: PartyGaming
9.30 am Conference call starts

Comments

Party Stock

[(Anonymous)]

I still wouldn't want to put a dime into party stock because I am convinced they have substandard management. They are stressing their casino operations at the expense of poker. And even if casion operations produce more revenue per customer, if they piss off the poker players with stupid changes which they have, then fewer of them will be willing to become casino customers as well, and they will have damaged their core competency for nothing and allowed other poker sites to more easily gain ground on them. However, perhaps the overall quality of management isn't that great in the online gaming industry to begin with, focusing more on marketing than providing good customer service, in which case party might not be at such a disadvantage.

BluffTHIS!

Re: Party Stock

[peterbirks.livejournal.com]

I have no long-term faith in Party -- this would have been a short-term move based on bearish comments in the past week and the simple equation that bad news for Empire = good news for Party, as opposed to the analysts' consensus (repeated today, by the way, but in reverse) that bad news for Empire is bad news for Party. Empire was actually marked up this morning on Party's figures, which basically consisted of the news "we've screwed Empire" (except that they didn't actually say that, of course).

This is a definite area where the analysts are looking at the whole sector, whereas we, the insiders, can work on a company-by-company basis. (Some of you may remember the good old days, when this was how the properly named hedge funds operated. These days they are little more than "the trend is my friend" players.)

When Finspreads opened this morning it just had "call to trade" by the Party price and then, five minutes' later put up the spread by 9.5%, which I thought was a bit over the top. So I didn't trade. If I'd remembered to do it yesterday, I would have made about £50 on the deal -- so, no big shakes.

I think Finspreads took a bit of a hammering over Empire last Monday week :-)

PJ