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888 Announce Bumper Profits in 2007 H1 Results

Online gambling group 888 has reported a 298% increase in H1 pre-tax profits despite the UIGEA, which resulted in their withdrawal from the US market.
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Danny1
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Danny1
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Posted: 11.09.2007, 01:34
i have some winnings from poker and was thinkin about buying some shares

do you think i should buy partypoker or 888?
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jonnyv
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jonnyv
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Posted: 11.09.2007, 23:52
Buying into online gambling stocks has been historically very risky, as the industry is relatively new and has been subject to a lot of turmoil, especially in the last couple years.

With so much uncertainty, there can be value if you are prepared to accept risk and gamble on the right side of an upcoming event. If you take PartyGaming (LSE: PRTY) as an example, you have people buying the share based on their expectation that eventually PartyGaming will be allowed to re-enter the US market. On the flipside, you have people shorting the share on their expecation that the US DoJ will plant some heavy fines on Party like they did with Neteller. If you're prepared on gamble on uncertainty, you can score big if you're right...or...you can lose big if you're wrong. If you think PartyGaming will eventually inevitably re-enter the US market and that the DoJ will be lenient, well you should definitely buy the share as the price will shoot up if you are right on both counts.

Personally, I think both 888 and PRTY are good, but risky buys - but you should seek professional advice before investing. I don't hold any online gambling stocks at the moment.
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