Wow -- Doyle tries to buy the WPT!

[2Tone]

I’ve been reading a little more about this, and have to conclude it is very risky move. I’m no stock expert (though it is interesting how much it has in common with poker, what with calculated risks, money management, and the like), but …

The research reports say for the 13 weeks ended 4/3/05, WPT's revenues decreased 1% to $4.1M. Net loss totaled $1.6M vs. an income of $792K Meanwhile, it’s PE is 51, which is way high.

The big thing is to buy the company at such a premium, you are betting the poker boom is not only going to stay at its current level, but actually increase. The majority of WPT’s revenue comes from the TV, and it seems that the airwaves are already saturated with poker coverage. Ratings are bound to fall in the coming months, especially once the WPT has to go up against ESPN’s long delayed coverage of the Series.

Then again, Doyle is much smarter than I am. As to the earlier conjunction about how much of his own personal money is involved, I’m only speculating here, but I’d imagine he has a relatively small up-front investment and a relatively large stake in return. His name is an enormous asset, when puts that up, he lends credibility, garners press attention etc, which could be more valuable than a few extra million in capital.