Why Shares of Ltd Bounced Back Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: A day after falling 15%, shares of Ltd  (NYSE: WBAI  ) were recovering today, gaining as much as 10%, and finishing up 7% after responding to a report questioning the legality of its service.  

So what: On Wednesday, a Chinese newspaper reported that the China Sports Lottery Administration Center had not authorized any sports lottery websites, the business that deals in. Today, the company responded by saying it "fervently denies the allegations," and "reiterated that it has obtained all relevant approvals to legitimately operate an online sports lottery service in China," which includes approval from the Ministry of Finance, the ultimate overseer of the lottery industry. Also, provided links to documentation. 

Now what: Though shares moved higher on today's news, they're still down 9% from their close two days ago, prior to the accusations coming out that may indicate some skepticism remains about's legal authorization. Following's response, Deutsche Bank upgraded the lottery service from sell to hold, and the company announced quarterly earnings yesterday, beating expectations. The information cited by seems convincing, but this issue could linger. To keep an eye on any further reports, you can add to your Watchlist here.

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Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

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