GuruFocus Premium Membership

Professional Value Investing Tools at Affordable Prices

Try It 100% for 7 Days!

Baron Funds Comments on Digital Entertainment

August 30, 2012 | About:
From Baron Funds second quarter commentary: digital entertainment plc (LON:BPTY), one of the largest online gaming companies, declined approximately 30% this quarter. The decline was due to new taxes imposed by the German and Spanish governments on online gaming markets which lowers its operating profit in the short term. However, in addition to taxation, these countries passed favorable regulations which allow online gaming companies to publicly advertise.We believe this creates significant upside for digital entertainment over the longer term. We also believe this growth, plus the potential legalization of online gaming in the U.S., should increase the company's earnings over time. (David Baron)

Rating: 3.0/5 (5 votes)


Please leave your comment:

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership