Who Shorted Partygaming?

[umop-apisdn 0]

Wish I hadn't checked the price out... Sick sick sick. First I can't play the Mansion bet, and now this.http://finance.yahoo.com/q/bc?s=PRTY.L&t=5d

[JMoney2681 0]

Ouch, weren't they at 120 before, 3 days ago. Damn.

[MyPlayIsRAB 0]

yep, you lose half your business, your company is worth half as much

[Yoda 1]

yep, you lose 75% of your business, your company is worth half as much

FYP

[keith crime 8]

Probably every congressman who voted for itBy the way - Mike Sexton needs his TOC money back now

[JMoney2681 0]

Probably every congressman who voted for itBy the way - Mike Sexton needs his TOC money back now

LMAO! NH

[Spence 0]

wow, I'm really tempted to go long on this stock lol.Gonna have to research this.

[mrdannyg 274]

i actually discussed it with a financial advisor, who basically told me it was too much of an unknown to invest in it either way. maybe i'll call him back and kick him square in the nuts.

[Spence 0]

I'm excited to see how far this goes down. If it goes down low enough I see it being a good value. I'll have to crunch #'s etc, I'll look at it over the weekend.

[DaBruins 0]

yeah, in retrospect i'm kicking myself for not shorting this. I did tell a friend of mine though who's a stock broker, but i dont think he did anything with it.

[terradawg 0]

you would have had to shorted the stock before the announcement that they were cutting off the US market. major announcements by public companies are made after market hours so, for example, the stock will close at 100 and the first trade the following morning would be at 50.

[Dratj 0]

yeah, in retrospect i'm kicking myself for not shorting this. I did tell a friend of mine though who's a stock broker, but i dont think he did anything with it.

I heard you need big accounts to short stocks. A guy I work with would buy 60K of one stock at a time and they wouldn't let him short stocks. They told him he's not big enough.

[IQCrash 1]

Shorted @ $58 a share.

[tater nuts 0]

I heard you need big accounts to short stocks. A guy I work with would buy 60K of one stock at a time and they wouldn't let him short stocks. They told him he's not big enough.

The way I understand it is when you short there is a limited up side but an unlimited downside so thats why you need so much money, not to mention that it can be risky as hell. We had a day trader come into one of my finance classes and told us he lost over 360K in one day on a relatively small short that went the complete wrong direction because he kept meeting the margin calls.

[Royal_Tour 0]

I know ZERO about stock markets, but someone answer me this please.if you think the stock is goin to go down and you decide to short sell the stock, will you always be able to find a buyer for your stocks before the price drops?

[tater nuts 0]

I know ZERO about stock markets, but someone answer me this please.if you think the stock is goin to go down and you decide to short sell the stock, will you always be able to find a buyer for your stocks before the price drops?

Shorting is complicated and I don't know everything about it but if you want to short a stock there is an uptick rule that says the stock has to trade higher (even a penny higher) for your short to be valid. Not sure if this applies to you buying "at the market" or if you name your price you want to short at, but I think that in any high volume stock you should always be able to make a trade when you want, if it's during hours.

[TCTC 0]

I know ZERO about stock markets, but someone answer me this please.if you think the stock is goin to go down and you decide to short sell the stock, will you always be able to find a buyer for your stocks before the price drops?

First, you don't need to "find a buyer for your stocks before the price drops."Let me see if I can help clarify and simplify what you would do if you dont actually own the stock, but think it is going to go down. You would buy an option to sell the stock at a pre-determined price and time, you are not actually buying the stock, just the option to sell it at a later date. Lets say Party Poker was selling at $100 last week and you purchased an option to sell it if it reaches the strike price, which we will say is $50 and it expires in 30 days. You can purchase options that have different strike prices and different expiration dates. The cost of the option varies based on the strike price and expiration date. The further off the expiration date is the higher the option cost. You are paying more for more time to allow the stock to "tank."Lets say Party Poker was selling for $100 on Monday and you purchased an option to sell 1,000 shares at a strike price of $50. You purchased a 30 day option, which we will say cost you $1,000.So, if the price doesnt drop to $50 or less in 30 days your option expires and you lose the $1,000 and thats all.If it does drop to $50 within 30 days you then exercise your option and the person that sold you the option has to basically pay you the difference between the original price of $100 the stock was selling for when you purchased the option and the $50 strike price.He will owe you $50 a share for 1,000 for a total of $50,000. So, you can only lose the initial cost of the option, which we randomly said was $1,000 if the option expires. Options expire because the price of the stock either went up or it didnt go low enough in your time period, which we randomly said was 30 days. Or you can make $50,000.This can be a low cost/high reward investment, but remember most options simply expire, so most of the time you will lose your initial investment of $1,000 or whatever its initial cost. Sorry for the long response, but I hope this helps explain it.TCTC

[tater nuts 0]

This explains it very wellhttp://en.wikipedia.org/wiki/Short_sell

[Jelly-Filled Ace 1]

Well written and very helpful.Thank you TCTC

[keith crime 8]

Ok I actually trade stock options for a living and short stock all the timeIt's true you can buy puts which are bets on a stock being lower at a certain date but this is not short sellingShort selling is when you borrow shares from someone and sell them in the open market - in some markets you need to sell on an uptick in some you do notProfessionals usually pay a borrow cost to borrow shares - brokerages are doing these types of deals all the timeOnce you sell the stock short you make a dollar for every dollar it goes down and lose a dollar for every dollar it goes upIf the stock pays a dividend you need to pay the dividend to the person you borrowed the stock fromYou can hold your short for as long as you can cover the margin against the short or for as long as you can borrow the stockCertain big companies' stock are very easy to borrowSmaller and newer companies are harder If everyone in the world thinks a stock is overvalued and goes to short it - it may become difficult to impossible to borrow the stock and shorters may be forced to buy their stock back in at the market - this may cause the overvalued stock to go even higher - it is called a short squeezeI'm not totally sure about the ability of non professionals to short stock - although I'm sure if you have enough money to put up as margin you can do it somewhere although you may have to pay significant borrow costs

Well written and very helpful.Thank you TCTC

Has nothing to do with shorting stock TC is describing the purchase of put options

[Jelly-Filled Ace 1]

ok then.not my gig.

[ripptyde 0]

Gamblers adapt to loss of U.S. online sitesTue Oct 3, 2006 7:12pm ETMarket ViewPRTY (Partygaming ) Last: 39.00p Change: -1.75 (-4.29%) Revenue (ttm): £523.4M EPS: 0.04 Market Cap: £4,280.00M Time: 3:23am ET [+] By Chris ReiterNEW YORK, Oct 3 (Reuters) - Last weekend, when the U.S. Congress passed a bill making it illegal for banks and credit-card companies to make payments to Internet gambling sites, a legion of online gamblers were sent scrambling to find new ways to place their bets.The lack of easy access to Internet gaming sites may deter some casual gamblers who have been turned on by the recent explosion of poker but according to online gamblers, and those who help treat gambling as an addiction, people who are hooked will find a way to bet, legally or illegally.Site operators -- such as Britain's PartyGaming Plc (PRTY.L: Quote, Profile, Research), Sportingbet (SBT.L: Quote, Profile, Research) and 888 Plc (888.L: Quote, Profile, Research) -- on Monday said they would likely pull out of the United States as a result of the new rules. "And just like that, comes the end of an era in my life," remarked EVPlus, an online gambler who claims to have won over $13,000 playing poker over the past year on sites like PokerRoom.com.Online players have preyed on casual, less skilled players."I make money off of the idiots who watch one poker tournament on ESPN2, borrow their mom's credit card, and tank $100 over the course of 10 minutes," said EVPlus, a blogger on MySpace who describes himself as a 30-year-old male from Pittsburgh. He did not respond to e-mails."The only players left are those people who are wiring money to the Cayman Islands or Canada ... What casual player does that?" he said in a post.

[keith crime 8]

"I make money off of the idiots who watch one poker tournament on ESPN2, borrow their mom's credit card, and tank $100 over the course of 10 minutes," said EVPlus, a blogger on MySpace who describes himself as a 30-year-old male from Pittsburgh. He did not respond to e-mails."The only players left are those people who are wiring money to the Cayman Islands or Canada ... What casual player does that?" he said in a post.

my space blogs count as journalism sources these days?

[CzechRazor 0]

long story made short and easy - you sell short and buy long, i.e. buy to cover.

[Balloon guy 158]

Keith explained it perfectly.Here's the other side of shorts. Take Enron, plunging price was dropping fast.Everyoen tries/ does short the thing i.e. borrows shares from another.The price drops, these shorters are sitting pretty.Price is $.02 and they are ready to buy the shares they borrowed, in order to give them to the guys they borrowed them from. This buying up stage results in a bounce in the stock..supply/demand, price begins to climb again as shorters cover thier shorts.So when Party hits 'bottom' there will be a bounce. This is also a time to make a quick gain if your timing is right.My timing is hardly ever right.Ask Keith for the time.