Global Market Share Discussion Threads

[outsider] 26/10/2006 08:24

Wiganer, yes exactly we had threads full of negative comments on SIN, which have rapidly changed round, hopefully they we here too, to reflect a better balance.

[wiganer] 26/10/2006 08:20

Bizarre that some folk see the statement negatively. If it wasn't for the ongoing general malaise affecting small caps generally then I have no doubts GMC would be valued at at least 10p a share.

Outsider- GMC now reminds me a little of SIN when it was about 20p.

[rcktmn] 26/10/2006 08:20

hope it goes as high at 8p... then i'm in profit!

[ivor whopper] 26/10/2006 08:17

Excellent results, better than anyone could have hoped. Still some knockers on the thread, probably people who sold at a loss.
If this company can increase profit by 400% in this years climate, who knows how high this could go.
No negatives, luverly jubberly

[chrisgough] 26/10/2006 08:14

This is great, I am only 57% down now !

[outsider] 26/10/2006 08:12

Lord Buffet, its already in old news releases.


They are doing exactly the right strategy, considering events, also they had the foresight not to get too involved with US side of things, but not many seem to give them credit for that do they?

Not perfect, but which business is?

[outsider] 26/10/2006 08:10

Also I suspect several parties are bidding for it.

[lord buffett] 26/10/2006 08:10

Outsider

What you're missing is that they paid £10m for gambling.com (much bigger/more significant than casino.co.uk) and the US legislation is very bad for that, IMO. They don't mention that, by way of balance, do they.

[outsider] 26/10/2006 08:09

Analyst I can't say, but the fact that GMC use the word significant in the tradinmg statement, suggests to me, that we will all be happy with the sum.

[the analyst] 26/10/2006 08:08

Very hard to assess the price they will get for casino.co.uk, that's the point. The acquisition price is going to make a huge difference to how the company is valued going forward, especially give that gambling.com revenues are going to drop. We have already seena 50-70% reduction in numbers of companies advertising on the international gambling.com search engine in the past two weeks.

[the analyst] 26/10/2006 08:06

£5m? £10m? £20m? :)

[the analyst] 26/10/2006 08:05

ANy thoughts on the price they will get for casino.co.uk Outsider?

[loverat] 26/10/2006 08:05

You watch it come down over the next 30 minutes...

[eggbird] 26/10/2006 08:04

i like what ive read in this mornings statement!!!
huge rise today and tomorrow imho, and rightly so!

[the analyst] 26/10/2006 08:04

We know that Eyeconomy have been searching for acquisitions for the past 6 months or so and I wonder what they have identified so far?

They could have quite some war-chest to spend once the casino.co.uk sale has gone through. A spend of £10m should get an acquisition that will bring in another £1m a year profit and rapidly expand thereafter. Hopefully with synergies that aid the ongoing business too.

[rcktmn] 26/10/2006 08:01

ok, results might not of come up to expectations but there not bad in the present climate......onwards and upwards

[outsider] 26/10/2006 07:57

I agree everyone free to be negative or positive, but the strong negative tone on this thread does surprise me. Even when good news is received it seems muuch more people wishing to be negative than make any positive comments. I was delighted with the update & especially the following:

The Board
believes that the recent changes in US regulations are extremely positive for
the valuation of both Casino.co.uk and mobile gaming business since these
businesses have no US customers and derive over 95% of their revenues from the
UK market. It is anticipated that the sale proceeds could be significant

[the analyst] 26/10/2006 07:56

Just trying to assess the situation Outsider, good to debate both sides of the argument. As good as the strategy going forward is and how undervalued the company looks given the cash generation and cash in the bank, you can't escape the fact that H2 profit was lower than H1.

[the analyst] 26/10/2006 07:53

Agree with a lot of that Senator, generally I think this is very good news for the ongoing business - strong cash position that will be improved by the sale of the casino.co.uk brand. I'd be very happy if they got £5m for in the sale, but would hope for £10m given the mobile deals with Orange and Vodaphone. One of the companies that already have a mobile gambing business wuold love to take-over GMC just to get hold of those important contracts. Plus the brand name that gets organic search through the word 'casino'.

However, as expected, there are a few negatives - the dollar rate only accounts for a 5-10% drop and one would have thought that increased ppc rates and numbers of visititors to the site should have more than made up for that. The profit in H2 is less than H1, dropping from £1.3m to £1.2m. Not much of a drop, but it's still falling profit levels that will be compounded by the US legislation. I wonder what the 'one-off costs' were?

That aside, yes it is excellent news overall (I think!)

[outsider] 26/10/2006 07:53

Some of you guys are amazing, still negative comments after a superb upadte, you should sell, or maybe some are after cheap stock?

[outsider] 26/10/2006 07:51

Strongly disagree it's the worst time to sell the gaming business, it's the bext time, Gaming companies are all looking to replace USA revenue, they will be falling over themselves for quality aquistions.

[rocketfuel] 26/10/2006 07:47

The forecasts were for 2.9m-3.4m net profit so even taking into account the currency issue i think they missed the numbers.If hope Gambling.com does not take a hit, if it is where all the profits come from. It makes me wonder what has happened to the mobile business.

[senator] 26/10/2006 07:37

The US $ is weak. This is without the control of the company. I think that we should be very pleased that the company has made this statement and I see no negatives here. Strong second half trading is excellent news and reflects that revenues are UK generated.

Since all of the UK based OLG companies are focusing on UK, Europe and Asia this will be the focus for GMC going forward.

We can watch with interest. The company have said that trading since the US legislation has not shown any necessary trends. Surely this means that those companies with UK focus are still using the media and advertising businesses.

Excellent news..very strong cash position and excellent profits gains.

Senator

[the analyst] 26/10/2006 07:12

We discussed the possibility earlier of them getting rid of the casino.co.uk business including the mobile casino. Maybe they were reading this board for deciding the direction to take the company? :)

However, rather than float it off or list it separately as we had hoped, they are going to try to sell it. On the one hand it's bad because the brand should be making a lot of money, but on the other hand, GMC have not been effective in running casino.co.uk and so they should be better off selling it.

Very difficult to know if they will get a good price. This is possibly the worst period in time to sell an online casino business in history, yet it is a very good brand name that should create real interest given that customer acquisition focus has moved from the US to the UK.

[loverat] 26/10/2006 07:09

This is the bit I find most interesting...

'Although trading remained strong in the second half of 2006, profits were
adversely impacted by a weakening in the US dollar and by one-off costs. The
combined affect was approximately £0.2 million'