Northern, WI 03/22/2013 (BasicsMedia) – As expected, Nevada has granted 888 Holdings (EIHDF.PK) a gambling license to operate in the state, making the U.K.-listed company the first online gaming firm to receive a permit in the U.S. The move could have repercussions for Caesars Entertainment (NYSE:CZR) and WMS Industries (NYSE:WMS) – both of which have a partnership with 888 – Century Casinos (NASDAQ:CNTY), Zynga (NASDAQ:ZNGA), International Game Technology (NYSE:IGT) and others.
888 Holdings (EIHDF.PK), one of the world’s most popular online gaming entertainment and solution providers, announces that, at a meeting held today in Las Vegas, the Nevada Gaming Commission has approved the licensing of 888 as an Interactive Gaming Service Provider and in connection therewith the licensing of its key executives and controlling shareholders.
Brian Mattingley, Chief Executive Officer of 888 said: “This is an historic moment for 888. This is the first time a company uniquely providing online gaming has been licensed by any US jurisdiction.
Seen in the industry as the gold standard of global gaming regulation, we are delighted to have been awarded our licence to operate in the State of Nevada, a decision that vindicates our US strategy. We look forward to working with all our strategic partners and to re-launching the 888 brand in the US following the finalisation of platform approval.”
The company has strong fundamentals. The EPS estimates for 2013 have almost doubled this year, from USD 0.08 in january 2012 to USD 0.13 today. Moreover, the firm is expected to have USD 90.6 million in cash at the end of this year and USD 128 million next year. Graphically, the security is in a bullish trend on all time scales. Prices, are near to the USD 158.8 pivot point, which is corresponding to the 20-day moving average. This configuration should help the stock to reach its USD 176.5 short term resistance.
Thanks to technical and fundamentals elements, its seems relevant to take a long position in 888 Holdings at the current price. The main objective will be the USD 176.5 resistance. Once this level crossed, the security could go towards new annual highs. A stop loss must be placed below USD 158.5.
Disclaimer I have no position in the companies mentioned in this article.