WPT Enterprises is the company that runs the World Poker Tour. Its shares have more than doubled since it went public last August.
However, according to figures from the Nasdaq, more than 40 per cent of WPT\’s available shares were owned by short sellers as of early March. An extremely high amount.
Furthermore, CEO Steve Lipscomb sold sizable amount of shares lately.
The company generates the majority of its sales from television and product licensing fees, while it remains uncertain whether recently launched poker website wptonline.com will ever be a generator of profits.
“The valuation for this stock and optimism is based on expectations for success in online gaming. But attempting to quantify that is difficult so there is certainly some risk because of that,”said Dennis Nielsen, an analyst with Feltl & Company, to CNN Money.
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