September 28, 2005
SpeculatingStocks.com Stock Pick: WPT Enterprises, Inc. (WPTE)
Stock Price: $8.82 (long-term strong buy)
WPT Enterprises, Inc. is the creator of the World Poker Tour®, a television show based on a series of high-stakes poker tournaments that airs on the Travel Channel in the United States and more than 50 markets globally. The company currently licenses its brand to companies in the business of poker equipment and instruction, apparel, publishing, electronic and wireless entertainment, DVD/home entertainment, casino games, and giftware.
Investors had high expectations of WPT and their online business, those same investors are now losing patience and dumping their shares sending WPTE down towards its IPO price.
We are confident that WPTonline will eventually succeed. Two reasons, one they advertise the site at the bottom of every WPT event on Travel Channel. Second, the interface is second to none and the brand will grow strong internationally. The downfall to WPTonline is that it is illegal for US players to wager since WPT Enterprises is a US company.
Online poker sites are extremely profitable once established. If anyone can break the establishment of PartyPoker.com, it is WPTOnline.com.
SpeculatingStocks.com Target Price: We expect WPTE to reach $16.00, possibly much higher within the next 3 - 6 months.