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Is it time for online gambling stocks comeback?

The online gambling stock market, just like any other, is heavily fuelled by rumors and speculations. After the US anti online gambling law was signed by the president last year, most of the online gambling stocks trading on the London Stock Exchange lost significant values, some companies loosing as much as 80% stock value.

PartyGaming stock 1 monthYet many investors believe that the current price of many Internet gambling companies are under-valuated based on that law, while the companies themselves continue to show growth both in customer base and profits.

There is nothing bad in rumors, as the news of Congressman Barney Frank seeking repeal of the online gambling law, proved quite beneficial for the gambling stocks.

Party Gaming (London: PRTY) was trading at 38p on the 12th of March 2007 and managed to close on Friday 13th 2007 at 56.50p, with a couple of interesting trades at the end of the trading session - one valued over £1 mill and the other over £5 mill. It seems that the official statement of PartyGaming PLC. on the 11th of April, that the company will stop servicing the Turkish market, did not scare investors away.

The Austrian based Bwin Interactive (Munich: BW9) is also showing a healthy raise in its stock price from the low 29.95 on the 19th of last month to the closing of 33.59 on Friday.

And the Swedish Unibet Group PLC (Stockholm:UNIB) is very close to its 52-week high of 227.00 with the stock closing on Friday at 222.50 and after market trading pushed the price to 224.00.

The WTO ruling that the US online gambling law was illegal, and the continuous pressure of the U.K. and other E.U. countries for an open online gambling market in the Union have also helped. As more news are expected in the near future from the office of Rep. Frank, is it a good time for the investors to take advantage of the still low priced online gambling stocks on the international markets?


Related news:

 Optimal to buy back outstanding shares of online gambling payment processor
 E.U. court rules against Italian gambling laws




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