Who says there's no insider stock trading at poker.com

[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.

[Total Square]

mo,
this is one that i have been following lately.

this puppy was .25 a little over a month ago, and has trended down ever since.

the stock closed at .11 friday...then yesterday (the day of the announcement) opened at .09.

from there it started the day up...to .13 and this was prior to the news being publicly released. after the news was out, it dropped like rock from .13 to .09 down more than 25%

today it opened up at .11, and closed at .12, but still below the point it was when the news was released...and the news was UGLY

i always wonder about buying into these kinds of thinly traded companies, but they seem to be the biggest in the field.

fortunatly, i didnt pull the trigger on it mid May when it was .28. came this close.

[BigMo]

hello total-

Lets get our timeline/tradeline straight on this, it will help us see the real players action.

The press release was out at 3:27pm yesterday. and as you mentioned, the stock had already been as low as .09 bottoming before the negative press release. In fact, the bid and ask was .09 by .12 for most of the day on very light volume.

During the time it was at .12 there was almost no volume to speak of. 3 trades were made after the announcement, successively at .11, then .10, then .09, to close out the day. Last of the squares in my opinion, who didn't see the iceberg til it hit the ship, and the short players let them have their rush to the door as usual. Today the stock opened higher and pushed higher on stiff volume.

Short covering, and the market makers marked the price up accordingly.

Whether it closed at the point it was before the announcement is open to interpretation. It happened to have its last trade before the announcement at .12, but the bid ask was .09 by .12, so could just have easily been at nine. Further, the low down volume figure for yesterday after the announcement compared to the high, up volume figure today is indicative of the squares getting out yesterday, not indicative of any intrinsic value at yesterdays closing #, or legitimate action relating to the news. Todays action and volume a better indicator, imho.

Does that make sense? A bit of splitting hairs, particularly since the point of the thread is the potential trading on inside information before the announcement, which went on for 2 months. And that should be clearly evident. Lets not concentrate on what may have occured in the few minutes before and after the announcement on low volume. its missing the point.

[Total Square]

bigmo,

and today a 40% pop from .15 to .21 based on some more news...


VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 1, 2002-- Poker.com, Inc. (OTCBB[img]i/expressions/face-icon-small-tongue.gif[/img]KER - News), a leading provider of online gaming systems, today reported record results for the three months ending June 30, 2002.

Total revenues for the second quarter were $871K, an increase of 249% compared to the revenues of the same quarter last year of $349K. Net income for the quarter was $98K, or $0.0057 per share.

Second quarter revenue gains were the result of a significant increase in revenues generated from licensing and royalties. Licensing revenues increased to $535K, up from $15K, the same quarter last year. Royalty revenues increased to $320K, up from $161K, the same quarter last year. Advertising revenues were $16K, down from $172k, the same quarter last year.




and a half hour later back down from .21 to .16


i is soooo hard to invest in these types of companies, but these guys would appear to be the big boy in this arena...

[OZ]

does poker.com, get royalty from wsex

[Total Square]

they get a royalty from all that use their software, i would assume