Speculating About an IPO

Published October 18, 2005 by OCR Editor

Speculating About an IPO

The online casino industry is about 10 years old and while some say that it is still in its infancy and has plenty of growing to do, others predict the bubble may soon burst.

Like any future speculation about the financial forecast of an entire industry the truth is hard to know. The internet itself is still very much in its early stages so it's hard to say how the online casinos will fair in the future. Recent IPO's and stock floatation have lead to somewhat lukewarm reception in the financial sectors and predicted targets were largely missed by one site after another.

The recent shake up of some operators like Party Gaming, whose stock took at 30% tumble; have been reason for concern in the business. Many investors are taking a close hard look at the sites that are considering going public and speculating on the true value of the stock. The internet on a whole, which represents intangible goods and services, is still a risky investment and has seen a wave of ups and downs over the past few years.

Despite the recent turmoil surrounding certain operators, common sense should indicate to investors that two important factors are here to stay: The internet as a medium through which players can play all their favorite online casino games and gambling as a whole. Land based casinos around the world remain profitable so it is only logical that their virtual cousins will follow along the same path. Smart investors may just be waiting for a further drop in their market value in order to make a good purchase at a cheap price.

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