PokerTek, Inc. Up on Speculative Buying
Jun 4th, 2008 | By J. Christoph Amberger | Category: Stock Market InvestingPokerTek, Inc. (PTEK:NASDAQ) shares soared 38% before noon as traders believed institutional investors were impressed with the company’s presentation at the Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference.
The company has bagged several new contracts with casinos for its latest PokerPro product in May alone.
PokerTek develops, manufactures and markets electronic poker-related products for use in gaming and amusement markets, targeting both large casinos as well as restaurants.
Any interest by institutional investors could substantially increase the share price. Recent contracts have only added fuel to the fire as the shares continue to head north.
We’re of two minds regarding the company. For one, even after today’s run-up, it’s still trading below $5.50… over 50% below its 52-week high. It has negative EPS of -1.14, and its stock price trajectory has follwed that of U.S. consumer sentiment downward. The momentum appears to steep, the trigger to flimsy to validate even a short-term hold.
Venturesome investors should consider a short poition between $5.50 and $6… betting on an equally rapid decline of up to 33% by mid-month.
Source: PokerTek, Inc. Up on Speculative Buying
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Amberger began his career as a freelance contributor to Agora publications before emigrating from Germany to the United States in 1989, when he joined the editorial board of Taipan. In 1991, he took over as managing editor for the publication and assumed responsibility as group publisher four years later. In 2007 Christoph left Taipan and founded Today's Financial News.
