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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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32Red - New online casino operator

October 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The flotation of online gambling business Party Gaming has triggereda rash of me-too followers, with 32Red being the latest to announce itsintention to float. Numis, which previously acted for online paymentprocessor FireOne (458p), is acting as broker. Like virtually all firmsconnected to the online gaming industry, 32Red, primarily an onlinecasino operator, has hit the ground running very hard since it wasfounded in 2002. In its first year, it generated turnover of £0.2m anda loss of £0.5m, but two years later, that had been transformed toturnover of £5.7m and a pretax profit of £1.1m, while it has alreadymade £1m profit in the first six months of this year alone.32Red, which has based all its operations offshore in Gibralt ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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