PARTYGAMING

Miamisteve,I am taking the analogy with Betting Exchanges and the demise of Sporting Options and the rumoured financial difficulties of BetDaq. WIth Sporting Options it was surprising how little liquidity they had managed to attract which I suppose was a reason why they were tempted to use their own capital.

Betfair is of course different BUT

1/ I would like to know just why the float was postponed and why the CEO left

2/ They seem to be aggressively marketing and trying to build momentum by expanding to Oz and South Africa

3/ Their Poker site does not seem to be that highly rated

4/ I sense the liquidity for some smaller events is not that deep but a personal view

In other words while they seem to be successful ( particularly in big event punting ) there do seem to be a few issues on the horizon.

These gaming business models appear to me to be more complex than at first they appear.

With PRTY, I agree with you that they are a sector leader( like BetFair) but I have doubts about an increasing marginal cost of additional capital/liquidity,or to the extent that I would like to see that this is a containable cost within PRTY's finacial performance.

I am not a shorter ( holding to 150 hopefully but with a tight stop loss )