Poker stocks in 2008 = Donk Down
December 5, 2008 by TG
Like many stocks in 2008, poker stocks have also taken a beating this year. Companies that went public prior to the Unlawful Internet Gambling Enforcement Act of 2006 are still trying to recover after the law dealt them a significant blow and 2008 has gone into the books as a year that CEO’s and COO’s will hope to forget. Below is a look at two of the most notable companies in the poker industry and how they have fared in 2008.
Party Gaming
Party Gaming went public in 2005 with an initial price of 125.50 pence but lost a third of its value a year later when the UIGEA was passed and the company had to close its doors to its American business. As of January, the company was trading at 29 pence, the company then consolidated their stock which added 10 times the value to the stock price. The Party Gaming stock price then jumped to a high of 312 pence due to rumors that the company was close to settling with the US Department of Justice. A settlement was never made and the stock is now trading at 124 pence.
World Poker Tour Enterprises
2008 has been a tough year for World Poker Tour Enterprises who has faced set back after set back. First, its online gambling site didn’t take off as expected and was closed this fall as a result. The company was also forced to take a less than lucrative TV contract with FSN after GSN opted not to renew their contract. The WPTE was told this summer by NASDAQ that it may lose its spot on the exchange due to its trading price falling below $1 for more than a month. Because of the financial crisis, the action against the company was suspended until May 2009. WPTE stock is currently trading at 36 cents though it start
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