BKKSTAN wrote::) Jimbo,what is your opinion about why the stock dropped 40%?Seems like a very big drop for a particular company.If it has to do with the possible loss of USA customers,I would think that the losses would be equally felt by all online gambling stocks.Might be a buying opportunity!

I believe the business plan for many of the internet gambling operations assumes that a large number of the punters will be from the US.
The stock dropped 40% because it was the company chairman who was arrested and that is someone they can't really walk away from (the previous person arrested was immediately fired by his company and left high and dry on his own). It now seems inevitable that this company as a minimum will incur huge legal costs to get their chairman back and possibly huge fines as well and the company will have to take steps to eliminate any US customers which will knock a big hole in its customer / turnover base.
Although these companies received legal advice that their operations were legal, it appears that the Christian Taleban that runs the US feels that it has the legislation in place that can prevent its citizens from indulging in the heinous sin of gambling even when the bet is placed with an institution outside its borders because the money for the bet is directly traceable from finance institutions which are inside its borders.
A broker on Bloomberg said earlier tonight that gambing stocks are viewed by market professionals as a gamble
In conclusion, I don't view this as a particularly sound investment opportunity
