This one hit the markets running today. Despite negative publicity it was well supported so I jumped in for a small holding--anyone else joining in?? I am hoping for a good run up before the shorters get going.

my money would go to Numis ..... but then my money would not be in PRTY anyway!

I think the thing that is saving PRTY from collapse is the fact that it has big cash reserves, even allowing for the $250m write down for lost U.S. business.
IMO it's has got to acquire a bigger market share, so maybe it is seeking targets???
The 23p must be a projected valuation based on the remaining 15% of it's business, much the same way as SBT was revalued.
M or A has got to be the way forward.

With the money taken off the table during float, the founders can easily setup an US online gambling operation - if they are willing to face US revenue authority scrutiny and pay US taxes.

Anyone know the current PRTY cash reserve per share? Thanks.

"Online gambling group Partygaming has said that restructuring its business after pulling out of the US will cost it about $250m (133m)." (BBC Business)

Why?

it's a goodwill write off, (intangibles) not a cash loss.

buy this should be 40p ,

The recent results look very good on the non USA business how many other companies have gains of 158% in turnover in a quater. Obviously you can di anything with the figures and they are trying to be seen in the best light, but compares to SEO's board they are supersonic genii (or geniuses)

Tanker well I bought SE38 instead http://uk.warrants.com/services/quotes/details.php?code=SE38 (This link thing looks very wrong. )

Sorry about my dyslexic fingers

15 million PRTY shares bought after the bell tonight at 29.23.

For all companies in which we invest, we have to ponder seriously whether the company and its staff (especially the managements and executives) will not act against, sacrifice or ignore the interests of ordinary shareholders for the benefit of themselves and large shareholders.

Small shareholders without access to insiders suffer from many extra risks and penalities.

i know i keep saying this, but be aware that a buy of any size can very easily be someone closing a short position ..... this will apply especially with the likes of PRTY and SBT and CPW where there are some huge short positions in place

cynic, thanks for the reminder.

I have another reason for being extra cautious on PRTY. IMHO, US IR may still be interested in pursuing the founders, past and current senior staff, wherever they are. If US can be concerned about 3m to extradite the Barclay bankers, then the incentives are much greater to find ways to "recover" $100m's for the US taxpayer. Image also the name one can make for oneself if one can claim credit for adding $100m's to the US treasury ...

Only IMHO, NAG etc

OK, OK we know most of the bad news, mainly that there will be no easy-money from the US, where it was easy taking their dollars so easily. For that the sp has fallen from c.4 to abt 30p now. [EDIT: peak price was just over 1.50]
PRTY owns a database (of willing US-punters), that many US-based gaming businesses will be willing to buy. Either for cash, or maybe a share in new business, who knows?
However, as far as we know, PRTY has cash; + it stopped paying the dividend which was abt 2% ( at today's sp, about 26% yield.[EDIT: 9%])...used to buy other businesses in Europe and the Far East where I understand they continue to make profits - anyone here of a Gambling disposition - IS this TRUE?

Furthermore the sp fall may have been MM's making hay, knowing that Institutions would sell their stash once the stock is kicked out of the FTSE rankings......a no-brainer IMHO.....so MMs are at levels that they can't believe, since I doubt many PI's have bought the surplus, neatly explaining the 13x fall in sp (and maybe nearer 15x).
PRTY is ISA-able being full list and there is every hope that it will climb-back....since it's only the "Selling-Off" that caused the fall.
It is true that income will be down, but profitability should not be affected, since I understand the "Write-down" is a goodwill exercise - it is not PRTY paying cash so they can walk away from the US.
There may be US-led calls to extradite execs - but what is legal here (and was there by many heads)...puts the US-extradition into focus in the same way it has with the so-called Nat-West four.............but the US-favoured Treaty was intended to catch international Terrorists - not petty city types employed by Banks, or game-companies.........therefore I suspect any high-jinks with UK Execs will soon back-fire and the US Authorities will be told what to do....starting with Human Rights (oops!) of their own regime.

............Is PRTY a good BUY...........?
Dunno, even though I have a few at 30p in my ISA and a few in certificated form, soon sitting in the Bank, that way I should get the paperwork and maybe a free spin of a roulette wheel at the AGM, flanked by some heavy bunnies. Investment neednt be taxing, to mis-quote a slogan. If they reach 1 and restore the 2% dividend , that will pay me the equivalent of 6.5% which can't be bad on a stock that has most of the BAD news in the price and almost none of the Good News anywhere to be seen. If it reaches just 50% of earlier levels (2 say) the yield equiv is over 12%....maybe in four year's time if I'm lucky........
Has anyone access to recent REFS?
What is the historical NAV/Cash etc?
Anyone that is still Holding, what are yr views and why didn't you sell when the news broke some months ago? Would be interesting.
Cynic...I don't short...you obviously know the technique - if a shorter closes their position I presume thay (presently) will be taking a Profit and "think" it is unlikely to go lower........so why isn't this a good time to buy or take a position expecting a rise? Yr thoughts looked at the other way, perhaps?

not necessarily .... shorter may well be happy with his profit and decide to take money off the table, especially with w/e looming ..... PRTY have already taken such a hammering, and there is only about 30p left ...... a shorter may also feel that (a) a bear squeeze is a possibility and (b) that there are easier picking elsewhere - e.g. CPW or perhaps WPP ..... as for buying, reckon anyone must be nuts! .... only marginally better bet that OXS!!

Which company are you looking at Hangon? I can't see that PRTY ever made it to 2, let alone 4.

forget party..poker is just a fad,get into sportingbet,..always be around

then again 20% rise tomoro..

The Sunday Times October 29, 2006


Gaming sites in 1.6bn merger talks
Louise Armitstead and Matthew Goodman



TWO of the biggest UK-listed online poker operators, Party Gaming and 888 Holdings, have held preliminary talks about a possible merger to create a 1.6 billion company.
Both firms have been trying to find a way to cope after sales were hit by the introduction of laws banning online gambling in America.



Party Gaming, the worlds biggest online poker group, fell out of the elite FTSE 100 group of companies, while 888 Holdings dropped out of the FTSE 250 index. Their shares collapsed when both firms said they would cease trading in America.

Executives from the two companies have in the past couple of weeks held exploratory talks to combine their pool of online players. It is expected that further talks will be held in the coming weeks. It is one of several options being considered by both companies and their rivals.

One insider said: All the players have been talking to each other for weeks. At one stage there were plans for attempting a multi-company merger but it was decided that this would be too difficult and that one merger at a time would be quicker.

He added: The biggest problem facing gaming companies is that each ones pool of players has been dramatically reduced by the removal of the American market. Now when players sign on, there are a lot fewer people to play against, which means even those that are legally allowed to play are finding it less interesting.

Other firms also trying to find ways to consolidate include Sportingbet, the AIM-quoted company whose former chairman, Peter Dicks, was arrested in America last month, Excapsa, which is also listed on AIM, and Bwin, an Austrian internet betting firm.

The big gaming companies are looking to acquire rivals that have a strong European or Asian presence. For example, Party Gaming has been linked with a deal to buy Gamesys, which is big on the Continent, and Victor Chandler, the bookmaker that has the biggest player base in Asia.

Ten days ago when Party Gaming released its key performance indicators for the third quarter, Mitch Garber chief executive, told analysts the company was in talks with several parties. Two weeks ago, Garber told The Sunday Times: Consolidation is, in my view, the most sensible way to grow the business right now.

Party Gaming was floated on the London Stock Exchange last year despite its prospectus containing 33 pages warning of risks such as a block on money transmission. The firm earned 85% of its revenues from US clients using its internet services.

In the past month Party Gamings shares have slumped 70% to 30p. Over the same period 888 fell 24% and closed on Friday at 108p.

maestro headline in the business column in sunday times online that party gaming and 888 gaming sites are in preliminary talks re a 1.9 billion pound possible merger. Todays times on line have a look and see what you think. Looks like your party gaming shares will shoot up tomorrow every one will be buying hoping that this will go ahead.

Frampton, you are right....must be mad, me! I have EDITed the earlier posting as it affected both fall% and Yield.

At the time I was unaware of two pieces of News:
1) That PRTY and ANOther might merge to boost their "play-value", others here think this might help the sp....(Sun Times discusses this and here, too)
2) UK Government to have Euro-Plus talks aimed at countering the US "heavy-hand" - folk will be aware that Prohibition in 1920 created the financial muscle for organised crime (esp US_based) which we have to this day. Legit outlets for gambling bring in plenty of revenue to the Exchequer and some regulation can reduce its worst effects.
Thanks also to Maestro for yr comments.
I have to take this on the chin, but the two above events.... look like I have a slightly greater chance of winning (for once!).