Party Poker IPO

[MarvinS]

The latest hot topic is Party Poker - The broad sheets at the weekend had this all over them.
I have been told the IPO price last week was pricing at 115p to 123p but has been reduced within a weekend to 105p to 110p. Anyone got any info on this other than the usual hype....

 

[capitalspreads]

Party Poker

we are quoting it at 111.0-115.0
we have had two way business at that price so our clients are obviously being persuaded by whichever newspaper article they believe the most!

but to be honest it is anyone's guess

Simon

 

[MarvinS]

Dresdner 111-127p
Morgan Stanley 110 - 194p
The banks really have some bright sparks.
Simon without boring you to death IG are pricing around the 112p mark good in £10, i was wondering whether anyone would be good in decent size.

 

[capitalspreads]

Marvin

our price which has unstandably moved after yesterdays announcement is good in only £20 for each trade.

Simon

 

[MarvinS]

Simon
OK but if i was looking to trade in ten times this size or more what would you advise.

Marvin

 

[capitalspreads]

marvins

dont take this as an endorsement but... if you go to www.spreadfair.com they also quote it ... the market is an exchange which means that although cantors back up the price you will be trading against other punters

if you are a seller there is currently a bid for £400 at 117 !!

Simon

 

[MarvinS]

simon
Thanks for that link - much appreciated.
It seems the price is all over the shop any views non advisory obviously.

Marvins

 

[jklondon]

sell @ 117 spreadfair - buy @ 115 on CS = locked in profit - or will the spread on the reverse kill this very well thought out idea !

 

[MarvinS]

i am under the assumption that there is no spread on close - it should be the price at the end of the 1st business days trading. Is this correct. With no spread attached on close.

 

[capitalspreads]

Marvin

yes the closing price is the market bid offer at the end of the first business day with no CS spread. And sorry mate ..but not even unofficially can I give advice.....

jk

unfortunately our price is no longer at that level (shame) ..but the arb would have worked (had it been there) as I suspect the bid offer on the close will only be 0.25p

cheerio

simon

 

[MarvinS]

Simon

Whenever we use to quote these markets there was always the potential for arbs. I suppose in £20 or £10 the arbitrage doesnt really matter so much. Good publicity, it shows alot of the spread betting firms struggle to make a price. Its amazing how much publicity this stock has generated in the papers, they must have a good marketing team.

JK London - your sharp to spot the arb/ SB's are covering up!

 

[capitalspreads]

marvin

as with all things advances sometimes work against the dealer. (not often but sometimes) .. when none of the SB companies was online there was always the potential for an arb... we knew them all... but now with the online function it is much more difficult because we can also see our competitors price !!

Simon

 

[jklondon]

I can understand why there are no APIs into the SBs ....yet anyway!

 

[MarvinS]

Morning Simon
When i first started in the industry there were no online systems and clever clients could systematically arb prices. Which is fair play, because you knew then that if you were asleep in the morning you would get your face ripped off. Online systems should reduce clients ability to arbitrage, because market makers, that is SB price makers, usually have most other online systems up.
To be honest i dont think there are many arb's in SB, however with spreads reducing on a monthly basis we will have to watch ourselves.

JK - What?

 

[MarvinS]

Plenty of Volume on this stock, offering @ 126p. Volume in first 30mins 62million shares. High 129 low IPO price. Any views anyone?

 

[MarvinS]

Simon
Did you get any action in Party Gaming? It seems everyone's pricing on this stocks listing was completley wrong! From an official listing of 116p on day one to a high on day one of 129p. The stock did have a tug back on Friday, a little bit of profit taking.
Did anyone else make a killing on this stock? The intensity seems to be dying down!

 

[capitalspreads]

marvin

it is not normally the case but in this instance all of our clients were the same way and (if you noticed ) our price was always on the higher side of the other quoting companies becus I thought that it would go better than the press was saying. Our clients were all long (every one of them) so it cost us a few thou.

Simon

 

[MarvinS]

Simon
I suppose at £20 per point you always know the losses are capped. Do you know of any firms that got mullered...
I can imagine most of your clients were long but as you said you bid the price up quite sensibly, you must of got one or two arb's....

Marvin