Thursday, July 20, 2006

Online Internet Gambling Discussions

A few weeks ago, I posted my analysis on PartyGaming. I like this company a lot, but my main worry is the legislation. Now, as the CEO of BetonSports been detained in USA with regards to illegal online sports gambling, all the online gambling companies including PartyGaming have taken great beatings. All their shares plunged over 20% in 2 days "slaughter".

As valueinvestor, we should take this opportunity to re-investigate the attractiveness of online gambling more closely. This may present a great buying opportunity.

There is interesting discussion on online gambling at MSN BRK board.

My conclusion is that PartyGaming is an exciting company that generates huge amount of free cash flow, and is a great leader in online gambling world. However, I'm not smart enough to understand how the legislation going to play out in the next few years.

Disclaimer: My Family Fund has investment in PartyGaming.

Happy investing,
Dah Hui Lau (David)

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