PokerTek, Inc. (NASDAQ: PTEK) has been trading on the upside all day long getting as high as $0.82 a 60%+ premium from yesterday’s close. The stock is also seeing real volume with more than 630k shares being traded.
Almost 2 weeks ago the company announced that it has signed a contract with CIE (Corporacion Interamericana de Entretenimiento) to be their provider of automated poker tables. The deal also includes the placement of PokerPro tables into many of their gaming properties.
I can only guess that this huge spike in stock price has some correlation with this major contract in Mexico. CIE is a prestigious operator and a leading producer of live entertainment in Latin America. For them to team up with PTEK is a credit to the PokerTek brand. When the news first came out the stock remained flat, so perhaps investors were skeptical on the news waiting to see the popularity of the newly installed tables.
More tables will be going up in high traffic tourist areas such as Cancun, with the summer fast approaching it is vital for CIEto promptly implement the new tables. All of this is good news for PokerTek and today’s massive upside move could be an indicator of things to come as this deal continues to unfold.
We will keep an eye on any press releases but for now it seems the CIE contract will be the catalyst for this stock moving forward. Lets also remember during the company's last conference call it said that their strategic planning would start to come to fruition during 2010.
Disclosure: no position