You may want to consider going short Cryptologic (CRYP). Here's why.
There's been speculation that the government's efforts to stop Americans from gambling online have been ineffective, according to reports. While a law did make it illegal for American financial institutions to transfer funds between Americans and online gambling sites, some savvy gamblers have been getting around the law, using Internet money transfer services. Plus, it looks as if U.S. Rep. Barney Frank is considering a bill that would repeal that ban imposed last year.
But the news is already out. The stock ran from about $22 to $25 in a few days as the news has already been disseminated. It's already been priced in. And honestly, the repeal hasn't even been inked yet. Until it is, we're looking for a near-term pullback on CRYP shares. Once there's word of an actual repeal, we'll buy at the bottom of the sell-off.
Plus, there may be limited possibility that the repeal legislation would even make it to the White House through Congress. And then there's the possibility that the legislation idea could die even before it gets started. In reality, it's a nice idea but the success of a repeal isn't very high, in my opinion. Go short Cryptologic here until there's some confirmation of repeal validity.
There's been speculation that the government's efforts to stop Americans from gambling online have been ineffective, according to reports. While a law did make it illegal for American financial institutions to transfer funds between Americans and online gambling sites, some savvy gamblers have been getting around the law, using Internet money transfer services. Plus, it looks as if U.S. Rep. Barney Frank is considering a bill that would repeal that ban imposed last year.
But the news is already out. The stock ran from about $22 to $25 in a few days as the news has already been disseminated. It's already been priced in. And honestly, the repeal hasn't even been inked yet. Until it is, we're looking for a near-term pullback on CRYP shares. Once there's word of an actual repeal, we'll buy at the bottom of the sell-off.
Plus, there may be limited possibility that the repeal legislation would even make it to the White House through Congress. And then there's the possibility that the legislation idea could die even before it gets started. In reality, it's a nice idea but the success of a repeal isn't very high, in my opinion. Go short Cryptologic here until there's some confirmation of repeal validity.
