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New World Record Beaten For Pump And Dump Scams!
Published: 2005-10-18
 Billions of dollars lost by investors in the biggest pump and dump scams in the entire history of online gambling!
Party Gaming (Party Poker) and Empire Online (Tradal) managed to pump and dump their junk shares, and once again the poor naive investors were left to hold the bag. These are the biggest losses ever suffered by investors in the online gambling industry, and it's hard to imagine that anyone will ever manage to do a scam this big again.
Party Gaming (Party Poker) and Empire Online (Tradal) can be proud to hold the world record for the biggest pump and dump operation since online gambling started. It's hard to believe that there was not a conspiracy to take the two companies public within days of each other.
Party Gaming (Party Poker) started their fraudulent and illegal activities back in 1997 and they haven't stopped since then. Same thing for Empire Online (Tradal) since they started about 5 years ago. We will give you more details about these two companies in the report about the massive frauds in the casino affiliate programs, because both are also heavily involved with that.
It's no wonder that the founder of Party Gaming (Party Poker) resigned immediately when she got her millions from the poor investors.
For Empire Online (Tradal) this company is specialized in misleading people and cheating them, this is their primary business. Only a few weeks ago, they were trying to quickly dump their entire scam to Sportingbet for $1.4 billion. Not bad for a company that in our opinion was not even worth 5% of this figure, if that.
They were not licensees, they were not game developers, they didn't own any client, and there was no guarantee whatsoever that their "middle man" marketing agreements will be renewed. In other words, they were trying to dump their scam for $1.4 billion just selling hot air, in a business that is also illegal, while also cheating their affiliates at the same time.
We found that Empire Online (Tradal) totally lacks short and long term strategy. They are good for selling hot air for the price of diamonds, but their lack of experience, and their obvious immaturity, clearly shows that they didn't plan anything properly for running an honest company with a good business model, because they were too busy trying to dump their scam as fast as possible, for the highest possible price, and get out. When you don't plan to stay in the business you don't worry about short and long term strategy.
Now they are running their scam business on a daily basis, with panic and desperate ideas to try to save the boat that is already well underwater. Anybody thinking of buying their scam is got to be mad. These crooks can always find investors who will never learn because they are gamblers and not investors, and they are totally addicted to gambling. Any serious investor wouldn't touch these two scams.
How much did the investors lost so far in these two massive scams? It's hard to know the exact figures, because the losses are most likely to considerably get worse, on a daily basis, but it's got to be around $8 billion, and the final figures could easily be much higher. Regardless of how many more billions of dollars investors will lose at the end, it's already a world record!
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PartyGaming plays a winning hand
Published: 2005-10-21
 ALASTAIR REED
INTERNET casino and poker room PartyGaming said a tactical split with partners this month had boosted poker growth, reassuring investors in its battered stock and lifting shares 10 per cent.
PartyGaming's highly volatile shares have more than halved in value since the company warned in September that its rapid growth was moderating.
But after PartyGaming said it was comfortable with analysts' forecasts for 2005 revenues, the shares clawed back 8p to close at 86p, having earlier touched 87p.
Shares in online gaming have swung wildly in recent weeks as investors struggle to identify the leaders in a sector valued at up to $12 billion (£7bn) a year globally, and where firms rake in hundreds of thousands of pounds every hour.
"Since the end of September, there has been a marked improvement in poker and casino," chief executive Richard Segal said, as the firm posted a 32 per cent lift in third-quarter revenues to $220 million.
He added that PartyGaming's partial split this month from partner websites like Empire Online had helped boost revenues for its PartyPoker site by more than 10 per cent.
"The pick-up post-split is in line with our expectations, and it's not even two weeks since the platform split occurred," Segal said. "We have seen some players coming across ... but we would expect a seasonal pick-up as we come into the longer winter months."
Citigroup said the results "should provoke some relief", and "dispel the worst fears short-term".
"We remain bullish that management have the tools to re-stimulate growth," the broker said in a research note.
Citigroup gives the shares a fair-value estimate of 223p, and a price target of 160p this year, almost double their current price.
Analysts had expressed concern that the partial split from partners known as "skins", might hit poker revenues.
Empire warned on Tuesday the move would drag its 2005 net profit 10 per cent below consensus estimates, knocking other online gaming stocks.
"Skin" sites act as a facade for PartyGaming's internet poker room, directing their own players there in return for a cut of profits.
"PartyGaming sign-ups will have benefited from Empire and Coral customers leaving the inferior skins network, an improved seasonal trend in poker, and the new products on offer after the technology upgrade," said Matthew Gerard at Investec Securities.
PartyGaming's Segal said he was encouraged by the performance of two new games on his site, following the technology upgrade.
"The reaction of customers on blackjack and side bets has been extremely positive," he said. "It has been material and immediate."
PartyGaming said the overall number of customers, measured by total active player days, rose 53 per cent year-on-year to 12.2 million in the third quarter of its financial year. But third-quarter casino revenues fell 19 per cent from second-quarter levels to $11m.
Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said: "These are very strong numbers and go some way to restoring PartyGaming's bruised reputation."
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