July 6th, 2005

SpeculatingStocks.com Stock Pick: Youbet.com, Inc. (UBET)

Price: $5.55 (long-term strong buy)

Youbet.com is the largest Internet provider of thoroughbred, quarter horse and harness racing content in the United States. Members enjoy features that include commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering, race replays, simultaneous multi-race viewing and value-added handicapping products.

Youbet.com's earnings are due out around July 28th, last quarter they reported $18.5 million in revenue, up 25.1%, and $1.0 million in net income. Handled bets reached an all time high of $88.3 million. The upcoming quarter is historically the company's best performing.

The company is confident that they will acheive 2005 EPS of $0.18 -- the current analyst consensus estimate. They recently acquired International Racing Group which is expected to be accretive to earnings.

Horse racing continues to become more popular with each Triple Crown year that passes. The momentum carries over to Youbet.com.

UBET was in a significant uptrend until it dropped towards the end of May. UBET is now beginning to trend strongly higher.

SpeculatingStocks.com Target Price: We expect UBET to reach $8.00 within the next 2-4 months.