Investors Corner (Sep 17-21)

24 September 2001
Youbet.com Gives Go-Ahead to TVG

The shareholders of Youbet.com Inc. (UBET) approved four proxy proposals at their annual meeting on Thursday.

Robert M. Fell, chief executive of Youbet.com; Caesar P. Kimmel, a private investor; Chris J. McCarron, Youbet.com's spokesman; and William H. Roedy, president of MTV Networks International were re-elected to the company's board of directors.

Shareholders also authorized TVG to purchase up to 51 percent of Youbet.com's stock and increased the company's amount of common stock to 100 million shares.

The fourth item to gain approval was the appointment of BDO Siedman LLP as the company's independent auditor until Dec. 31, 2001.

My Casino Escapes Bank Debt

Barclays Bank has agreed to forgive the nearly AUD $1 million owed to it by My Casino Ltd. (MYC.ASX).

The Australian online gambling company owed Barclays $934,000 in credit card reversals as a result of credit card fraud committed against My Casino' s Web site. After months of negotiations, My Casino executive chairman Michael O'Donnell announced the bank would not seek to collect any of the money the company owes it.

O'Donnell also said that because of uncertain market conditions My Casino will withdraw the replacement prospectus it issued on Sept. 12.

U.S. Markets Impact U.K. Spread Betting

British spread betting firm IG Index said Tuesday that it spent a record amount of money covering its clients' positions when the U.S. markets reopened after the terrorist attacks on Sept. 11.

Spokesman Paul Austin said IG Index has seen a huge amount of activity since the markets reopened and spent $20 million in one day hedging its customers' bets. IG Index takes bets on the closing number of the Dow Jones industrial average for single days as well as for monthly contracts.

On Monday, Austin said, one punter in London closed out a bet he made on June 13 that the Dow would fall. He bet £75 a point at 11,017, making a £140,000 profit.

No Lift for Stock of Isle of Man Licensees

News that MGM Mirage (MGG), Littlewoods Leisure (SPO.L) and Sun International Hotels (SIH) were given the first three online gambling licenses from the Isle of Man didn't affect any of those companies' stocks favorably.

The licensees were announced Thursday, and all three saw little effect on their stock prices. Sun's stock decreased from 19.21 on Wednesday to 18.01 on Thursday. It closed for the week at 17.51.

MGM Mirage's stock also took a dip after the announcement, from 19.83 on Wednesday to 17.76 on Thursday. MGM Mirage stock closed for the week up slightly at 17.99.

Littlewoods Leisure is owned by Sportech, which closed at just under 7 pence after the announcement. The yearlong range for Sportech's stock is 6.5 to 28.5.

Sun Conference Call on WTC Tragedy

Sun International Hotels (SIH), which recently received one of three Internet gambling licenses issued from the Isle of Man, held a conference call today to discuss its business following the terrorist attacks on the World Trade Center.

A replay of the call will be available for the next two days. To access the replay, call 877-519-4471 in the United States or 973-341-3080 outside the United States and enter the pass code 2855105. The call will also be accessible on the company's Web site.

Reports Released

CryptoLogic Inc. (CRYP) released the balance sheets this week for its first-half earnings. The results reflect Canada's new disclosure rules. Another software development company, IQ-Ludorum plc (IQL.L) reported a fall in revenue growth in its interim report. GTECH (GTK) announced its second quarter results for fiscal 2002; revenues increased 3.9 percent from the second quarter of fiscal 2001 to $236.6 million.

CryptoLogic(CRYP) - Interim Report

IQ-Ludorum(IQL.L) - Interim Report

GTECH(GTK) - Interim Report