Analyst: Poker Not the Best Bet

13 April 2005

NEW YORK – As reported by CNN: "...Poker is hot, particularly the game known as Texas Hold'em, thanks to TV shows like ESPN's 'World Series of Poker' and Bravo's 'Celebrity Poker Showdown'.

"But perhaps the most successful poker series of them all is the 'World Poker Tour,' airing on the Travel Channel.

"…WPT Enterprises, the company that runs the World Poker Tour, went public last August, as a spin-off of casino operator Lakes Entertainment, and shares have more than doubled since the IPO. So should investors wager on WPT or check the bet?

" …[Dennis Nielsen, an analyst with Feltl & Company] said he is conservatively estimating that WPT will generate about $2 million in sales from the online poker room this year. Overall, he thinks WPT will post about $25 million in total revenues and earnings of 13 cents per share.

"Only one other Wall Street analyst follows the stock and the 'consensus' estimate for WPT is a profit of 18 cents a share in 2005 and sales of $26.8 million. Based on that, the stock is trading at a price/earnings ratio of nearly 90 and a price/sales ratio of 11...multiples that should give even the most skilled poker player reason to pause.

"That's because even if poker doesn't turn out to be a fad that eventually burns out, there are still many risks in the stock that are worth noting.

"…For one, short sellers, investors who think that a stock is going to fall in the near-term, have pegged shares of WPT as an easy mark.

"…Nielsen also noted that some insiders, including CEO Steve Lipscomb, have sold sizable amount of shares lately.

"Finally, it's uncertain whether online poker will ever be a huge generator of profits for WPT…"


Related Links
WPT Gaming Vendor Information
WPT Enterprises Gaming Vendor Information

Featured Vendors
Oklahoma Indian Gaming Association (OIGA) Conference
Casino City Press
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Regulatory Management Counselors, PC
Players Pal
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Players Pal
Revolutionize the way you connect with your casino players with the Players Pal mobile app
Indian Gaming Association's Mid-Year Conference & Expo
TribalHub
Indian Gaming Association's Mid-Year Conference & Expo
The perfect combination of learning, networking & sharing ideas on today's hottest topics in gaming
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Global Gaming Expo (G2E)
Sunkist Graphics, Inc.
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
AmericanChecked
Talisman Group Creators of EZ Baccarat
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Imagine This
Texas Slots & Gaming
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Betson Imperial Parts & Service
Rymax Marketing Services, Inc.
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Shenzhen ZhengYuanTai Technology Co., Ltd.
Top One Tech Limited
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years experienced gaming display manufacturer: open frame, curved, and halo monitors
Top One Tech Limited
Global Touch solution partner of choice, 10+ years OEM manufacturing, 100,000+ units application
Slot Machines Unlimited
Casino Schedule Ease
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Dable Advisory & Consulting Services
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations


Your Guide to 14,958 Gaming Industry Suppliers