Off Topic What's going on with youbet stock?

[lurker]

Please feel free to move this post, but I didn't know where to post this question. Has anyone seen what is happening to youbet's stock (symbol ubet)? The stock is down about 20% in 2 days. Anyone have any ideas about the stock? It seems a bit cheap to me, but I am looking to see what the board thinks before I pull the trigger. Thanks

[Ponyplayr]

Here is a link to the financials. They have some problems; and the legal costs of the TVG thing will continue to increase. I would wait to buy..JMHO

http://edgar.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4570819&Type=HTML

[DJofSD]

with an emphasis on the tech-savvy 21-40 age group.

Now I know why I don't have an account with them -- I'm not in there selected demographic!

[lurker]

Here is a link to the conference call:

http://biz.yahoo.com/cc/4/70484.html


I just don't see how much lower the stock will go. They kind of seem to get it when it come to racing and a decent product.

[Hosshead]

" The third quarter of 2006 will have modestly less content than the third quarter of 2005. For example, two tracks recently licensed their content to TVG on an exclusive basis. "

" the company has recently experienced a decline in wagering volume from several of its highest wagering class customers. "

" Youbet believes that a significant portion of this decline is attributable to an industry-wide trend whereby high-volume track, off-track and ADW customers are being aggressively recruited by illegal off-shore bookmaking entities that do not pay host track fees and, therefore, offer higher rebates and a broader number of gaming opportunities than domestically-licensed ADW providers. Youbet continues to work with the industry and its partners on a response to this issue. "

" Youbet’s new marketing programs — Youbet.net and Youbet Advantage — were successfully launched in April and contributed to increased awareness of our platform, new customer sign-ups and handle growth in the second quarter of 2006. " :lol:

" expenses for the second half of fiscal 2006 are expected to increase from the prior year period reflects: "
>• Expenses for United Tote operations, which were acquired in February 2006;
>• Ongoing legal costs that will be higher than experienced in the 2006 second quarter

" Operating expenses (excluding track fees, licensing fees, contract costs, equipment costs and depreciation and amortization) increased approximately 58% to $10.5 million for the quarter ended June 30, 2006 "

This is kinda interesting:

“ IRG’s 2006 second quarter handle and revenue reflect the benefit of our ongoing computer robotic wagering (CRW) test program. We expect to add several additional customers to this program this quarter. Based in part on the recommendations of our internal compliance committee, we limit the IRG content available for CRW wagering to those tracks that consent to such pari-mutuel pool access. "

[trying2win]

I see there's that familiar reference to bets going offshore again. Okay then, let's do a little comparison of some betting companies whereby apparently, the money is collected from customers and goes into the host track's parimutel pool:

1. HPI -- Rebate is a measly 0.5 %. A bettor collects "points" and can cash them in for cash vouchers after collecting so many points. (yes, I have an account there).

2. LINK2BET-- Rebate 5 % (they offered that rate to me, after I told that company that I estimated that I'd bet in the range of $100 to $125 per week to start). They said that they offer better rates for higher ranges of turnover, but I haven't made an inquiry regarding what those ranges are (yes, I have an account there too).

3. YOUBET-- Rebate ??? (can someone tell me what they offer customers for a rebate...if anything?). If they offer no rebate, no wonder money is going elsewhere) (no, I don't have an account there. Even if I wanted too, I couldn't. As a Canadian, I'm barred from opening an account with them)


T2W

[trying2win]

I should add, that there are still exceptions where some bets made through HPI are not put through the host track's pool in the U.S., but go into a "Canadian mutuel pool' for certain U.S. tracks that don't have co-mingled arrangements yet.


T2W

[trying2win]

Since no one has taken the initiative to step up to the plate to answer my question about YOU BET rebates, I guess I'l have to conclude that:

1. They don't offer any rebate.

2. But, they offer free live video to customers (don't know if you have to bet a certain minimum per month though) and having the video available is worth being a customer of YOU BET, in lieu of no rebates.


T2W

[mhrussell]

Since no one has taken the initiative to step up to the plate to answer my question about YOU BET rebates, I guess I'l have to conclude that:

1. They don't offer any rebate.

2. But, they offer free live video to customers (don't know if you have to bet a certain minimum per month though) and having the video available is worth being a customer of YOU BET, in lieu of no rebates.


T2W

No, no rebates. They do have a "Player Reward" program but it is not available to California residents (and there is nothing of any kind offered to CA residents to compensate for this, which burns me too).
My understanding is that it's a better, yet still cheesy variant of the TVG program (which is total cr*p!) offering points for merchandise, etc. But no rebates of any kind. And yes, by wagering a certain amount per month, total .. you get a certain number of 'waivers' of their normal monthly costs. What angers me the most is that YouBet has this attitude that by not imposing a penalty is equivalent to a benefit. With the 7%+ rebates offered offshore, no wonder money is going there. I am still leary of these operations, and now more so given the current legal environment.

So YouBet has been great as compare to TVG (their per bet charge is totally unacceptable!!!) and I will stick with them until BrisBet becomes available in CA... if that ever happens in my lifetime.

[trying2win]

MHRUSSELL:

Amongst the atmosphere of apathy regarding my question re YOU BET, you were kind enough to answer my question. Thank you. I appreciate it.

Supposedly HPI, LINK2BET and YOUBET and probably a few more U.S.-based betting companies, get paid a fee by racetracks to provide the facilities for off-track betting and forward the money wagered into the parimutuel pools. Why then are HPI, YOUBET etc. so stingy when it comes to rebates in comparison to LINK2BET? Are some of these betting outfits so arrogant that their thinking is "Well we provide a betting service, so the customers will flock to our company regardless whether we give a generous rebate or not"? A well-known, common sense piece of advice is 'YOU HAVE TO GIVE BEFORE YOU RECEIVE'. Apparently, some of these dumb Canadian and American betting companies 'JUST DON'T GET IT!'. Then they complain about offshore books taking business away from them and blame these outfits for why their revenues are down some years.

On the plus side, I believe some other U.S.-based betting companies offer a cash bonus to join their outfits, but I don't know if they offer any substantial rebates after that.

I also have another account at PINNACLE. I've found it helps to have more than one betting account, for reasons of availability of tracks, rebates, and a back-up site, in case the other ones are shut down online for technical reasons.


T2W