Online Betting Breakout
07/18/2003 12:00 am EST
Ticker Tape Digest's Technology Report features both breakdown and breakout candidates. Editor Leo Fasciocco says, "We focus primarily on a stock's technical setup. Tape action, earnings, new products, and management are also considered. Here's his latest upside speculation--a play on Internet betting on horse races.
"Youbet.com (UBET NASDAQ) provides online wagering on horse races in most US states, as well as in Australia and Canada. Charging a portion of each wager, Youbet.com lets customers place bets via Oregon-based Youbet.com Total Access, as well as through a wagering hub in Pennsylvania. Subscribers get access to up-to-the-minute odds and live audio and video feeds, 24 hours a day. In 2001 the firm struck an important deal with Gemstar-TV Guide (which owns about 17% of Youbet.com) in which Youbet.com users can place wagers on races broadcast on TVG Network's horse racing channel.
"We caution that UBET is a speculative, low-priced stock. The recent breakout carried the stock nicely out of ten-week flat base. The breakout move came on volume of 2.3 million shares, six times normal. The company is still operating in the red. We forecast a loss of 11 cents a share this year, a narrowing of the deficit of last year of 41 cents a share. The company should turn into the black next year with a profit of 12 cents a share. The stock is at a new high and can go higher."