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.
Yet 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
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?