Like a rocket to the moon, so went the stock for Party Poker (UK:PRTY).
The stock officially hit the market on Monday, instantly creating a market cap of about $9B. To put that in perspective, AT&T (T) is currently valued at about $15B!
For those that may be jealous, the prospectus may make you feel better. The prospectus acknowledges that a major risk facing the company is the potential arrest and jailtime for its executives and founders. Also according to the prospectus, about 87% of the company's revenues come from the United States. And the US Dept of Justice believes that online gambling is illegal. Threats and rumors abound that the US will either pass legislation to stifle the online gaming business (possibly by blocking visa/mastercard from working with them in the US) or arrest the executives of the company. Of course, none of the executives reside in the US, and probably are not planning to visit any time soon.
As expected, their numbers look pretty darned good. Profits in 2004 were $371M on revenues of $553M. Thats a 67% profit margin :-) I'm surprised it isn't higher. They must be spending a lot of $$ on some big parties for employees.
Lots of news about the PartyGaming IPO over the last few days. (see partypoker.com)
Does anyone else find it funny that the founder's name is Dikshit? It is apparently a pretty common name in India. Good news for him, though, he'll probably be worth about $3billion, making him the richest Dikshit.
See also: Reuters
Shares of Wynn Resorts (WYNN) has risen about 20% this week (about $10 per share and is currently trading at $53.40 per share).
Investors are excited about the potential of Las Vegas right now, as shares of many other Las Vegas Casinos are also rising.