daytradingUK
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Don't do it, wait until someone challenges the bill in court as they are all looking to rebuild their battered businesses.
If you have a go you could still get very badly scorched
If you have a go you could still get very badly scorched
daytradingUK said:
I don't agree, what more bad news can possibly come out for this sector?
Having said that it might dip sme more but I reckon some really big investors who know what they're doing are licking their chops right now at the prices they can buy at. And if the stocks go even lower then from a longer term prospective that's even better news.
it is one of the great myths of trading.......namely that because a stock has fallen heavily, it cannot go any further
From the current price to zero is a long way down. If the company goes bust you won't be licking you lips, but counting the cost
From the current price to zero is a long way down. If the company goes bust you won't be licking you lips, but counting the cost
damianoakley
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ketank said:Hello guys,
What's your opinion on prty,at a very low 40p, is it a buy hold or don’t touch.....
I'm tempted to buy, but aware of the all important Bush signature confirmation...
But what's the general view with T2W
For me, this has to be a DON'T TOUCH.
A stock that's hitting new lows near 30p in a very uncertain industry sector.
I think it's human nature to want to find a bargain and that's why people will consider piling into a stock like this because they think it looks cheap.
I'm not saying that it won't go up from here, but in my view there are safer stocks to trade in.
Good Luck
If you are going to trade Party Gaming go short.
They are in serious trouble.
Not only because of what happened. I actually interviewed with them for a job in Gibraltar, I have never been so unimpressed by an IT director and project manager in my life.
They have no idea what they are doing with technology that can help them become more profitable, increase market share and give them a better understanding of their market etc (for you geeks - data warehousing and business intelligence). So they probably have no idea in many other areas also. IMO.
Down to 34.5p now. I hope you didn't go long at 40p
Short short short.
They are in serious trouble.
Not only because of what happened. I actually interviewed with them for a job in Gibraltar, I have never been so unimpressed by an IT director and project manager in my life.
They have no idea what they are doing with technology that can help them become more profitable, increase market share and give them a better understanding of their market etc (for you geeks - data warehousing and business intelligence). So they probably have no idea in many other areas also. IMO.
Down to 34.5p now. I hope you didn't go long at 40p
Short short short.
charliechan
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common wisdom suggests buying when bad news releases no longer have any downside impact on the price. this suggests no more sellers left.
even if the usa does fall apart, on-line gambling is still gunna get massive. im sure the future is strong.
just what i fink.
even if the usa does fall apart, on-line gambling is still gunna get massive. im sure the future is strong.
just what i fink.
The online gambling sector will tripple in value (maybe even more) over the next 3-8 years, with or without the Americans. There is hardly and industry that gels so perfectly with the internet.
So who cares if you buy a share today and it goes down 40% on Monday, invest on the assumption that your short term timing is always going to be off. In fact if you do buy a share today and it goes 40% lower then that's fantastic news, you can buy some more.
Maybe one or more of these firms will go broke but what I'm doing is buying every damn share in the sector and am ready to buy more on any further weakness.
This sector and industry is NOT going away folks so by all means short it but don't overstay your welcome.
So who cares if you buy a share today and it goes down 40% on Monday, invest on the assumption that your short term timing is always going to be off. In fact if you do buy a share today and it goes 40% lower then that's fantastic news, you can buy some more.
Maybe one or more of these firms will go broke but what I'm doing is buying every damn share in the sector and am ready to buy more on any further weakness.
This sector and industry is NOT going away folks so by all means short it but don't overstay your welcome.
damianoakley
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Hi anley,
I'm afraid I can't agree with your suggestion of buying a stock and then buying more if it falls by 40%. I think this has to be one of the biggest mistakes made by beginner traders.
It's a big gamble. How long would you keep on buying a falling stock? When do you stop?
If you employed this strategy to a stock like Vodafone, you could have bought at 150p in Nov 2005 and then watched it sink to 110p by March 2006 - a 26% decline. If you had added to your position at 140p because it looked cheap, and then again at 130p and 120p because it looked even cheaper, then you would have been sat in March with a string of losses, not really knowing if the stock will recover your money or fall further.
I know a guy who bought a stock at around £14 a share and he kept on buying as the stock price fell to under £1 a share. He kept on buying all the way down because the stock started to look like an absolute bargain (to him) - he never stopped to think that there might be a good reason why the stock was falling.
Adding to losing positions can be risky game in my opinion.
Good Luck
Damian
I'm afraid I can't agree with your suggestion of buying a stock and then buying more if it falls by 40%. I think this has to be one of the biggest mistakes made by beginner traders.
It's a big gamble. How long would you keep on buying a falling stock? When do you stop?
If you employed this strategy to a stock like Vodafone, you could have bought at 150p in Nov 2005 and then watched it sink to 110p by March 2006 - a 26% decline. If you had added to your position at 140p because it looked cheap, and then again at 130p and 120p because it looked even cheaper, then you would have been sat in March with a string of losses, not really knowing if the stock will recover your money or fall further.
I know a guy who bought a stock at around £14 a share and he kept on buying as the stock price fell to under £1 a share. He kept on buying all the way down because the stock started to look like an absolute bargain (to him) - he never stopped to think that there might be a good reason why the stock was falling.
Adding to losing positions can be risky game in my opinion.
Good Luck
Damian
adrianallen99
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Of course it is a gamble, it can potentially make a lot of money as prices are cheap and the market may have overreacted to the news (who knows).
With any investment like this you have to be prepared to lose all the money you have invested in it, but potentially make 5-10 times your investment long term.
I have purchased some risky stocks in the past i.e. AFD when the stocks traded at about 11p, in this case I made a decent profit, but I knew that potentially I could lose the lot and was prepared for that to happen.
With any investment like this you have to be prepared to lose all the money you have invested in it, but potentially make 5-10 times your investment long term.
I have purchased some risky stocks in the past i.e. AFD when the stocks traded at about 11p, in this case I made a decent profit, but I knew that potentially I could lose the lot and was prepared for that to happen.
anley said:
1. Losers Average Losers
2. Enron (do some research there are some great stories on how people were averaging down all the way from $90 to $0.50... )
3. The market can stay irrational longer than you can stay solvent.
Never buy a share because it is going down and you think it represents good value. The trend is down and that is the way it will stay... until the trend is up. And then you can buy again.
Thanks fellas, seems like I'm the only bull here and you're all advising me that I'm 'mad' and a 'fool'.
That's just the kind of confirmation I need that convinces me that heavily investing into the online gaming sector is a sound move
Damian - Unless you're a beginner yourself you should know and understand that there are many different strategies to make money from the market. Like a handy man with a bag of tools, different tools for different jobs. So no I wouldn't start buying every dip in VOD or Atlantic Telecom or C&W etc, and I didn't either.
Utilising the investment strategy that I'm using for a new sector and one with incredible growth potential is very sound as long as you're confident of your overall analysis of the sector.
Investors in my mind have got this gaming sector very wrong at present, that is not to say the stocks won't go down further (I hope they do). They're focussing on the companies too much and not how advances in technology are going to open up incredible and explosive new avenues of revenue growth for these firms. Soon everyone will wake up but by then the stocks will already be 100% off their lows.
So yes, right now their business models are shot to pieces but I'm not investing for right now, rather for 2010+ and the stockmarket is a forward pricing machine which means long term investors must also act in a similar fashion. Being long therefore is far more important that buying at the perfect price because you might never get it.
Also, I can also stay solvent LONGER than the market stays irrational because a) I'm not using leverage, and b) the stocks I'm buying cannot go below zero last time I checked.....
That's just the kind of confirmation I need that convinces me that heavily investing into the online gaming sector is a sound move
Damian - Unless you're a beginner yourself you should know and understand that there are many different strategies to make money from the market. Like a handy man with a bag of tools, different tools for different jobs. So no I wouldn't start buying every dip in VOD or Atlantic Telecom or C&W etc, and I didn't either.
Utilising the investment strategy that I'm using for a new sector and one with incredible growth potential is very sound as long as you're confident of your overall analysis of the sector.
Investors in my mind have got this gaming sector very wrong at present, that is not to say the stocks won't go down further (I hope they do). They're focussing on the companies too much and not how advances in technology are going to open up incredible and explosive new avenues of revenue growth for these firms. Soon everyone will wake up but by then the stocks will already be 100% off their lows.
So yes, right now their business models are shot to pieces but I'm not investing for right now, rather for 2010+ and the stockmarket is a forward pricing machine which means long term investors must also act in a similar fashion. Being long therefore is far more important that buying at the perfect price because you might never get it.
Also, I can also stay solvent LONGER than the market stays irrational because a) I'm not using leverage, and b) the stocks I'm buying cannot go below zero last time I checked.....
Last edited:
ewilcox
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Anley for what its worth I personally would not invest in online gambling at the minute for precisely the reasons you just wrote - they have no coherent business strategy and their primary market (the US) is just about to disappear. I think there are other more realistic and profitable sectors to investigate than this one... By all means prove me wrong but don't say you weren't warned! ;-)
PartyGaming had a business strategy that has been turned on it's head by the US legislation but they had seen it coming and subsequently slowed expansion. It is worth noting that before the collapse in share prices they were mulling a takeover of a prominent bookmaker. Whilst it may no longer be possible to use shares as part payment, the cash is in the bank to make the purchase. Latest estimates put cash balances as £500 million, nothing to be sneezed at.
When the dust settles, this is a company that will survive and prosper it comes down to what is the right price to pay. Cash represents about 15p per share (aprox) throw in the rest of the business for say - 10p and you have a value of 25p.
Question is WILL THE SHARES FALL TO THAT LEVEL? Very unlikely but there is no reason to chase the shares at current levels.
When the dust settles, this is a company that will survive and prosper it comes down to what is the right price to pay. Cash represents about 15p per share (aprox) throw in the rest of the business for say - 10p and you have a value of 25p.
Question is WILL THE SHARES FALL TO THAT LEVEL? Very unlikely but there is no reason to chase the shares at current levels.
charliechan
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LION63 said:
exactly!
well said!
there is no end to the publics greed and numbers of people willing to gamble good money. for every loser, there are two to replace him/her.
with or without the usa, the potential market is massive, especially as moral standards in society decline at the current rate.
Anley - I like your reasoning overall. You've clearly done a risk assessment and decided to proceed.
History shows that if these kinds of stocks don't go UNDER they often multiply capital (minimum usually 3x but over 10x is not unusual).
Thanks for the tip.....
Hook Shot
History shows that if these kinds of stocks don't go UNDER they often multiply capital (minimum usually 3x but over 10x is not unusual).
Thanks for the tip.....
Hook Shot
fibonelli said:
30th June to present date is a very long time, these are not my figures or something that has been plucked out of thin air. Sportingbet have managed to offload their US operations without it costing them a dime because they were sold for $1. Surely PartyGaming can do the same if they choose to.
The rest of their operations are highly profitable and they have a value to those who are interested. The problem is that the value is subjective and there will be a high range of figures. Once the US problem is settled they will be in a position to acquire Victor Chandler if they still wish.
Most likely, the masses will then buy in droves and tell the world how they told us so. Sadly rather than backing the horse ante poste or before the off, they pile in just as it crosses the finishing line.
As has been said in some earlier posts, it is the varying views on price that enables the markets to exist in the first place.
anley said:Thanks fellas, seems like I'm the only bull here and you're all advising me that I'm 'mad' and a 'fool'.
That's just the kind of confirmation I need that convinces me that heavily investing into the online gaming sector is a sound move
You were specifically asking about PartyGaming, no one as far as I can see has said that the online gaming sector as a whole is a bad move.
anley said:
Of course they can't go below zero, but they can go down to zero. Are you going to be happy if PartyGaming stay at 35p for the next 5 years and you bought at 40p? At what stage do you think it is time that your money is put to better use elsewhere?
The whole point of my argument is that you do not need to rush in and buy now whilst the trend is down. You don't have a great chance of timing an entry at the bottom, so why not wait until it is clear the trend is up, it wont hurt you and it may save you a couple of years of holding onto a stock that is giving negative returns.
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