Citigroup Issues Bwin ‘Sell’ Warning
Citigroup Financial analysts have issued a sell warning urging investors to dump Bwin.party shares. The announcement is a tough blow for the gaming company that’s already taken plenty of hard hits lately.
The London-based analyst responsible for the warning cited high European taxes and a likely exit from the German market as the main reasons for the sell warning. He also noted that Bwin’s entry into the American market isn’t likely to happen until 2013 and will roll out on a state-by-state basis.
What It Means
Sell warnings are a tricky business and reading too much into them can dangerous. Bwin has definitely taken a few hits this year and that’s reflected in their plummeting stock price. Last week shares were selling for £0.97, down from a high of £1.77 earlier in the year. Citigroup thinks that number could fall as low as £0.77.
For affiliate partners, the news isn’t quite so dire. After all, many experienced affiliates are cautious about doing business with Bwin thanks to their less-than-stellar reputation.
While keeping an eye on an affiliate operator’s financial health is always a good idea, this warning isn’t something to worry about right away.
Do you agree with Citigroup’s Bwin sell warning? Share your thoughts in the comments section below.