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Penny Stock 1
WPT Enterprises Inc. (WPTE)

The company that kicked off the recent craze in Texas hold 'em poker with its franchise World Poker Tour became a low-priced stock due to its inability to sufficiently monetize its brand equity.

While other companies shunned U.S. law with online poker sites that operate illegally in this country, WPT Enterprises Inc. (WPTE) made the decision to stay out of the U.S. online poker market. At the same time, interest in poker appears to have peaked based on attendance at last year's flagship event, The World Series of Poker. In addition, a global recession impacted even so-called recession-proof companies, including those involved in the gaming space.

In December, WPTE traded at 52 cents per share. Since then, the stock is up more than 50% to 79 cents per share. In its recent earnings report, WPTE announced that its season seven was doing well on the FSN Network and that the company inked a deal for season eight on the same channel.

Although the company shuttered its WPT China effort, its clubWPT.com continues to grow. The company is engaged in discussions with customers and other parties in order to best leverage the WPT brand. The translation is that the company may be sold. If so, it will be at a higher price than 79 cents per share.

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