[BigMo]

SEC you out there?

Probably not, too busy writing up the resumes.

Poker.com stock is up 33% today, must be fantastic news right? No. they are reporting they are going to be way short of the 'earning guidance' they gave on May5.

What?

Earning are coming up way short but the stock is rising, doesn't make sense.

Sure it does, if you follow the bouncing stock.

Poker.com had been happily trading in a range of .25 to .30 cents a share for about a year. Earnings and revenues had been growing at a rapid clip, smiles all around.

They issued some fine earnings guidance on may 5 for the upcoming quarter, very swell stuff, then released the previous quarters earnings report a couple weeks later, and what a good looking quarter they had just completed. Share price rose to .30, a yearly high, but then something quite mysterious happened.

Although its normal for some selling to occur into the good news, and historical studies show most highs occur within 2 weeks after good results, there appeared to be some strong unaccounted sell pressure over the next 2 months without a stitch of bad news to accompany it.

A bit strange, and I was scratching my head. Poker.com stock price movement bears little resemblance to anything happening on the overall markets, so overall market weakness couldn't be the problem.

Anyway, the stock slid down to .19 cents by July 16, a rough move losing 50% of company value after a year of outstanding revenue growth.

But nothing compared with what was about to happen.

Between that date and yesterday the stock did a free fall, closing at .09 cents a share yesterday, and not a word on the news wires to account for it.

Until today (see accompanying article).

The company finally reveals to JQP that earnings are going to take a dip, but is there anyone left in the world who didn't know an iceberg was just ahead?

Their inside information is leakier than the titantic. Two months of open season for the short sellers before the rest of investors get to hear the news.

And that's why the stock is up today. Those short sellers are covering like mad.

Poker.com Amends Projections For The Fiscal Year Ending December 31, 2002
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 29, 2002-- Poker.com, Inc. (OTC-BB[img]i/expressions/face-icon-small-tongue.gif[/img]KER - News), a leading provider of online gaming systems, announced today that, based on preliminary estimates, it expects earnings for the second quarter of 2002 to be lower than projected. The company said it expects second quarter earnings to be approx. $100k, versus the $172k guidance given by the company on May 15th, 2002.

Factors contributing to the lower than expected second quarter earnings include:

The late launch of several licensees resulting in a decrease in royalty revenue.
A change in Market conditions resulting in lower than expected advertising revenues
Bad debt expense due to uncollectible accounts receivable.
"I am disappointed with the second quarter results however; I still expect 2002 to be a successful year for Poker.com Inc. These amendments are a direct result of several licensees delaying their launch date, directly impacting the expected royalty revenue for the year. This is simply a timing difference on the royalties as I fully expect our licensees to continue to grow with the corresponding revenues to be recorded in subsequent years. This delay, combined with the bad debt expense and decreased advertising revenue significantly affects the bottom line figures for the second quarter."

"Poker.com Inc expects to release its second quarter results within the next five business days."

About Poker.com

Poker.com, Inc. (PKER.OB) a fully reporting NASD OTC BB company, is a licensing and marketing company that sells and sublicenses Internet Poker, Casino gaming systems. The company's main sources of revenue are derived from sub-licensing fees, ongoing royalty fees, an opt-in advertising program, and banner advertising.