This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

World Poker Tour Bets on Web Gambling

And of course, the World Poker Tour is considered by most to be among the top poker brands, along with the World Series of Poker, which is owned by Harrah's (HET).

Backing up the power of the international market are data from PartyPoker.com. PartyGaming said in a recent investor presentation that in late 2004, 92% of new customer signups came from the U.S. At the end of 2005, that number dropped to 68%, as a larger percentage of gamblers came from Scandinavia, the U.K., other parts of Europe and Canada.

Latin America and South America, which aren't even represented in the PartyGaming report, remain largely untapped markets, Lipscomb says.

And even though the U.S. Justice Department remains opposed to letting this country's citizens gamble on the Internet, the rest of the world has proved to be more accepting.

If WPT were to penetrate 5% of the non-U.S. market, that would equate to about $325 million in revenue at a roughly 40% to 50% margin, says Steven Gart, an analyst with Nickel Capital, a hedge fund that recently purchased the stock. Last year, WPT's total revenue was $18 million.

"With an enterprise value in the $35 million to $40 million range, we just find the upside too strong not to bet WPT," Gart says.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs