Speculation regarding online poker giant Party Gaming looking to acquire a “bricks and mortarâ€? peer operation (rumors have the company looking to the Rank Group) spiked its stock 11 percent to 125p at one point this week, making it one of the markets’ biggest movers, before settling back slightly to close at 121.25p. The late-minute tempering of interest may lie in the fact that several analysts still see a wealth of opportunity in further online consolidation, Party Gaming’s stronghold, downplaying a need to venture into new territory.

Meanwhile, Paddy Power is inspiring confidence from analysts, among them Gavin Kelleher of Goodbody Stockbrokers who upgraded the online wagering company’s stock to “buy� from “add� this week. The recommendation came in light of the company’s balance sheet cash levels that would allow them to easily expand their UK market presence given their brand recognition and proven business model. Paddy Power closed the week down, slightly, at 13.00 €. The target price has been pegged at 15.00 €.
 
Elsewhere, Bloomberg.com noted this week that shares in Gibraltar-based 888 Holdings Plc are down 6.8 percent this month, as investors await the outcome of current-proposed U.S. legislation on the legality of internet gambling. Its shares traded at 195.75 at close Friday on the London Stock Exchange. The report went on to state that Sportingbet Plc has similarly seen stocks fall 10.5 percent during that time (following a 23 percent rise in the first five months of 2006). Its shares closed Friday at 378.00

posted by Rex Harris