main update....changed from "potential 20 bagger" to "potential 5+ bagger" in light of the recent price rise. My best-case scenario target remains $7.50/share based on potentially +.50 EPS and a 15 PE using their $100 million sales goal. I put 5+ bagger so that I don't have to update the number of bags very often as long as the price remains under $1.50/share.
Gambling problems could be on the increase as people suffering the effects of recession try to win their way out of debt.
Anecdotal evidence suggests that bookie’s takings are up despite many businesses reporting a serious downturn in trade.
This could add to the general trend which indicates problem gambling is on the rise.
Since the UK gambling laws were relaxed in 2005, gambling charity Gamcare has reported a sharp increase in the number of callers asking for help with gambling problems.
Gamcare's latest annual report, released at the end of 2008, said the record 37,806 calls to its helpline in 2007 was a 25 per cent increase on 2006.
There were also 1,407 requests for help to online advisers.
And the average amount of debt soared from £13,800 to £17,500, up nearly £4,000 in 12 months.
There are fears the credit crunch could increase the figures still further as more people turn to desperate measures to try to solve their financial worries.
A Kent bookmaker, who did not want to be named, said: “Our takings are actually slightly up on last year. I think in times like these people get a bit desperate and think ‘I’ll try to gamble my way out of trouble,’ just hoping for that big win.”
A Gamcare spokesman said: “We can’t say either way whether there is a link [between the recession and an increase in gambling] because the data is not available.
“But the issue with gambling in the credit crunch is that the problem gambler’s friends and family may suffer more as someone with a gambling problem will not just think ‘I’ve run out of money, I’ll stop gambling.’
“Money put away for other things might be gambled, even if things are really tight. This could put a lot of pressure on the problem gamblers friends and family, and we’d like to make it clear that our helpline services are for them too, to talk about how it is affecting them.”
This month the government came under fire from church leaders and gambling charities for relaxing the upper limit on fruit machines' maximum payout.
The jackpot has been raised from £35 to £70, while users will be able to stake £1 rather than 50p, under new rules authorised by culture secretary Andy Burnham.
Objectors say this will lead to more problem gambling, arguing fruit machines are a gateway to more destructive, higher stake bets.
The Archbishop of Canterbury Rowan Williams has long been an outspoken critic of Labour’s perceived pro-gambling stance.
Addressing the General Synod of the Church of England last year, he said: “The gambling industry is profoundly costly, its human pollution in terms of promoting addiction, destroying family life and so forth, is manifest. The industry needs to take responsibility.”
Sales of National Lottery tickets have also gone up, with half year sales to September 2008 increasing by £181.3m to £2.5 billion, with growth attributed to new ways to play and a run of large Euro Millions jackpots.
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