||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Superscape (London Stock Exchange): 0 recent articles
|helen troy: Gameloft seem to be doing pretty well and outlooking a profit for the full year. Expecting a big 4Q increase from their Iphone games. Their share price has more than halved this year though.
|1leigh: > gluu is now worth less than sps was sold for
Christ guys, looks like we got ousted out at the right time. Not trying to be funny but does it not appear that KR did the best deal for shareholders? If sps was still on the go now, what do you think the share price would be?|
|the bounty hunter: I am sorry as well as surprised to hear that you (and others) are unhappy with the proposed transaction with Glu. I will try to respond to your questions, though you must understand that I am not permitted under, among other things, the UK public takeover regime, to give you any material information that is not in the public domain or made available to all other target company shareholders.
We have not publicly disclosed details of the process we went through to elicit interest from other parties, nor would it be normal for us to do so. However, you should take into account the following:
i) The mobile gaming industry is a small one and we are well known and well-networked within that industry
ii) We appointed Close Brothers as our financial adviser for this transaction, ie a separate firm from our brokers Evolution. It would be reasonable for you to assume that in making that appointment, we took into account our adviser's knowledge of and contacts with the other potential purchasers globally for Superscape
iii) We first announced that we were in takeover talks on 29 November 2007, some 8 weeks before the announcement on 23 January of the Glu offer. Any other interested party had ample opportunity to make their interest known to us or to Close Brothers
iv) Any other bona fide interested party is still able to make their interest known to us and have access to the same information as Glu - the expressions of support for the Glu offer from our major shareholders fall away in the event of a higher offer (see page 138 of the offer document for details)
As regards valuation, Glu's offer represents a 73.7% premium to the one-month average share price prior to the "in talks" announcement. The share price was trading below 5 pence at the start of October and November 2007. As a public company, any Board has to take into account the realities of how the shares are actually performing, rather than how they think the shares should be performing. We also took soundings from our 3 major institutional shareholders before the deal was announced, and found they were unanimously supportive of the Glu bid at this level (hence the irrevocable undertakings and letter of intent from those shareholders to accept the bid).
I cannot comment on your payback calculations, even if I had the detail of how you reach this conclusion. Some relevant facts, however, which are in the public domain, are as follows:
i) the offer values Superscape at c. £18.3m, or c US$36.1m at current exchange rates
ii) reported cash balance as at the half year was US$10.7m, giving a net cost to Glu of the acquisition of c US$25.4m on this basis (before fees)
iii) your payback period of "less than 18m" implies that Glu can recover this US$25m+ outlay at a rate of over US$8m every 6 months.
iv) for the last reported 6 months (to July 2007) Superscape reported an operating loss of US$2.9m on revenues of US$7.2m
I hope that this helps to address your concerns. Please rest assured that in recommending this offer, we as a Board have given full consideration to all available options to deliver shareholder value, and taken independent financial advice and taken into account the views of our major shareholders, in determining that we should recommend the Glu offer. As a shareholder myself, I have every interest in maximising the price achieved in the same way as you do - and remain convinced that shareholder value is best served by supporting the offer from Glu.
|drewz: It looks very nice, if somewhat challenging.
No doubt Mr Roberts improved his golf swing even if he could do nothing for the SPS share price.
And how conveniently located - just across the road from Superscape's offices!|
|rossannan: Helen Troy
I thought that the share price was around 6-7p at the time of the reference to 'a significant premium to the current share price', so 10p could well be the figure that the management were thinking of at that time.
If more than 10p was on the table, you would think that the share price be higher than 8p. I've learned to pay attention to what the share price has to say in these situations. I just don't believe that the management are busy fighting for your 20p+ per share, not least because I suspect that their interests are not aligned with yours.
I've shorted this morning, with a guaranteed stop as you suggested wouldn't ever short without one!
All the best
|rossannan: Been watching the SPS share price since just before the possible bid emerged. Seems to me that that bid may already have been priced in and that the SPS management are preparing to let SPS go for a song (10p at the most), so I'm not inclined to get back in. All this seems pretty unfair in the light of recent progress - you guys should be rattling the management's cages.
Don't know enough of the background, but I still suspect that, in relation to the possible bid, the management's interests are not aligned with the average SPS shareholder posting on this BB.|
|figure6: mamcw,"the fallback in the share price indicates a degree of scepticism",I have seen SPS share price fallback on next to no selling (as now,even though theres plenty of buying) and then it bounces again.It has the feel of an mm "tree shake" and if SPS wasn't a sets share that is what I would say it was.Only a fool would sell now as SPS has said any offer will be at a significant premium to the 6.5p price.I don't see 2p as a significant premium (certainly not significant enough to warrant adding into the RNS).|
|chadders: Well I think this is great news and the mistake is to base valuations on the current share price(as of yesterday's close). I reckon the average share price over the past is the base case, and is often used, because of the vaguaries of the market which results in peaks and troughs. Remember this was at 16p only 12 months ago. I guess that takes us to where we are now at around 10p.
In my view it is inconveivable to think the management would support a price that did not reflect the true value of the business, which they will base on forward earnings and potential not current performance. That's how they raised £20 million, it's standard practice.
I seem to remember in May the 12p share price was described by KR as ridiculous. Also share options kicked in at plus 18p but of course they subsequently lapsed. This tells me the directors and the remuneration committee felt the true value of the business was 20p+ at that time.
There is no way the directors will let this go for less than 25p IMO which they reputedly turned down 2 years ago when EA made a bid. Since then SPS has grown significantly, albeit slower than we were all led to believe.
Imagine the conversation if it is Gameloft......."hang on a sec you are valued at 4 x turnover and you are offering what???"
Imagine the conversation if it is EA....."hang on a sec you offered 25p two and a half years ago and now you're offering what????"
Imagine the conversation if it is Glu....."you have engaged reverse gear and this Company is your salvation and that $70 million of cash is doing sod all"
I reckon whoever is bidding will want to deliver a knock-out punch to prevent a bidding war. SPS is a very desireable target for a number of players.
I'm a LTH and no advice is intended.|
|who needs lottery: So the US markets are in freefall yet SPS share price goes up 33% since the start of the month.
As us struggling longtermers know only too well, information on the companies performance tends to have a habit of leaking. The new initiatives taken by the company, in particular Windows Mobile and the Alltel Gaming Platform, in conjunction with the ending of Q3 on 31st October 2007 lead me to hope that SPS still has a future.|
|xeric: Just how low does SPS have to go before anyone with half a brain recognises this is not just a dog with fleas - it's a carcase??. Drewz and HoT seem perpetually blind to the SHARE PRICE. It doesn't matter how many new games they might be bringing out, investors determine the value of the company by the SHARE PRICE. Wouldn't it be refreshing to see some of the devotees filling in the blank here:
"SPS plummetted from a high of ____ to the current 5p, and I will stop backing it with the price drops to ___ as this will be evidence that it really has died as a serious investment prospect".
Just to remind you, the real score is determined by the SHARE PRICE. Who remembers Binladin getting the predictions a few months ago about a SHARE PRICE of 5p? Or is that just an annoying truth than rankles with the fanatics?|
Superscape share price data is direct from the London Stock Exchange