There is a big difference between a share price going down – and the company going bust.
The share price reflects the short term public sentiment of a company – the likelihood of immediate dividends and short term revenue growth. PartyGaming has little chance of either – and so it does not surprise that the market is dumping the shares in favour of more attractive stocks.
But any share price movements have no affect the actual balance sheet or assets of the company – so the whole tone of the article seems wrong.
:shhh:
Share prices are normally at a multiple of EPS (earings per share) – and I notice on Yahoo Finance that this is still set at 10.59 EPS – although I’m not sure if that is updated on latest law changes.
http://uk.finance.yahoo.com/q?s=PRTY.L
If the EPS of 10 is right … then I’d expect the share price to rebound to 80p – 100p from it’s current price of 30p.