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TTR 32Red

194.875
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
32red Investors - TTR

32red Investors - TTR

Share Name Share Symbol Market Stock Type
32Red TTR London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 194.875 01:00:00
Open Price Low Price High Price Close Price Previous Close
194.875
more quote information »

Top Investor Posts

Top Posts
Posted at 27/2/2017 17:07 by alphabeta4
Not an expert on these - as a growth investor I rarely get taken out. Is there anything to Kindred buying up shares on the open market just to get the deal away? My thinking is if you're bidding £2 and the open market price is £2.01 it's hardly a big deal.
Posted at 01/2/2017 07:07 by kevph
And relax. Another superb update. Hopefully given the lack of ramping/speculation prior to the TU, this will be back on investors radars and re rate. It's well overdue.
Posted at 08/11/2016 16:20 by paleje
Mail Money did an article on LCL a few days ago, pretty positive.

3i covered LCL also on 04 Nov saying potential 65% upside, acknowledged risks:

ST covered 32Red specifically in Sept and listed the risks as he saw them and, with the share price then at 140, rated them a strong buy. The risk part (which was before the recent announcements directed at the gaming industry) is below. I still hold and at a low average so have enjoyed divis, but not adding just yet even though I believe in the management quality, next update Jan I think:-

(ST)
Risk assessment

Of course, no investment is not without risk and there are a few to consider in the gaming sector, the most obvious is regulatory risk.

For instance, licence conditions and tax rates could change in 32Red’s markets. For example, HMRC is currently consulting on the precise way that Point of Consumption Tax (POCT) will be extended to free play from August 2017, which is likely to change game play and impact margins. Edison have factored in a 2-3 point increase in the effective POCT rate in their forecasts. In addition, earlier this year HMRC issued an informal working paper on VAT becoming chargeable on advertising services bought in the UK by Gibraltar based companies like 32Red, but at this stage it is impossible to know how it would work or quantify the financial impact of it either.

32Red also derives about a quarter of its revenues from countries that are unregulated. Some of these countries, including Holland, are in the process of introducing regulation which could introduce new costs or taxes, while others are yet to regulate.

Competition is a worth considering too. That's because 32Red operates in highly competitive markets and is up against larger rivals with significantly larger marketing budgets. That said, the company's management is experienced and has a strong brand presence.

The risk of an economic slowdown is also worth flagging up. The gaming sector has proved resistant to economic slowdowns in the past, including the last major slowdown of 2007-08, but this is not to say that it will fare so well in the future.

Finally, Brexit could be an issue. That's because 32Red is based in Gibraltar and would be affected if Gibraltar followed the UK out of the EU or if it became part of Spain, as unlikely as that would seem. That said, 32Red holds local rather than EU licences and the Gibraltar government has been keen to stress its flexibility and desire to support its gambling industry as the terms of the UK’s future EU relationship unfold.

Having taken all these risks into consideration, I am of the opinion that for my time horison at least, none of these are unlikely to detract from the positive operating back drop the company is currently enjoying, nor prove detrimental to investor sentiment.


Target price

So, having first recommended buying 32Red’s shares at 51.75p ('Game on', 7 Jul 2013), since when the board have paid out a total of 12.5p a share in dividends, and last advised running your profits at 134p ahead of yesterday’s results (‘Spinning higher’, 2 Aug 2016), I now feel there is a high probability of the share price returning back to the March 2016 all-time high of 186p, and possibly beyond. If achieved it would price the shares on a more reasonable 13 times next year’s earnings estimates, a fair rating in my view given the EPS growth profile. More importantly, these targets look achievable.

Interestingly, the chart set up is bullish as a close above the 152p summer highs would set up the share price for an attack at the 186p highs dating back to March. The 14-day relative strength indicator is not overly stretched, and the MACD momentum oscillator is above its signal line and in positive territory, so the technical set-up is supportive too.

On a bid-offer spread of 140p to 141p, valuing 32Red’s equity on a modest seven times cash profit estimates for 2017 to its enterprise value, I rate the shares a strong buy.
Posted at 24/9/2016 10:21 by fizzypop
Interactive Investor article
Posted at 23/9/2016 09:24 by paleje
Cheers IC2, they're also in today's Investors Chronicle apparently as a ST strong buy.
Posted at 22/9/2016 14:40 by interceptor2
I last held these in 2011 and enjoyed a modest profit but missed the large rise in 2015.Attracted back last week due to the tight chart consolidation ahead of yesterday's results.

Solid set of results with margin improvement from Casino sector to look forward to in second half, also a nice strong net cash position.

Higher number of transactions today than yesterday, as investor digest the results imo.
Posted at 01/8/2016 00:23 by paleje
A view from shareprophets on TTR but it doesn't actually concluded anything except it's uncertain whether they can keep it up:-

32Red (TTR), the online gaming business, delivered a nice set of results on Friday, although they were greeted in a lacklustre fashion by the market. After a huge run up in price over the past year, investors seem cautious that the share price might now fully “up with events”.

Licensed in Gibraltar (where else?), 32Red offers the online casino experience you’d expect: slots, roulette, blackjack, poker and a variety of other games. They have a sports-dedicated site amongst a variety of sister sites.

The latest results show 32% organic revenue growth, or 63% growth if you include the contribution of last year’s acquisition of a rival casino.

(Note that “Revenue” in the gaming industry refers to Net Gaming Revenue: that’s wagers minus pay-outs minus bonuses and some other standard items.)

One of the major problems facing gaming in recent years has been the UK’s Point of Consumption Tax – as with many taxes and regulations, this has the effect of driving smaller and newer competitors out of business, while empowering more established enterprises.

Fortunately for 32 Red, it was large enough to withstand the effects of the POC and decided to use the opportunity to seize market share.

Last year, it increased net gaming revenues by 52% against 2014.

The momentum has clearly continued in the first six months of 2016.

The problem is the market cap of £115 million, putting a fairly high rating on can often turn out be a commoditised product.

Online gaming is a highly competitive space, and especially in the casino business where many products can be replicated by developer teams at rival firms. While those with existing scale have an advantage, the competitive dynamics seem to revolve mostly around to the marketing budget.

32% revenue growth should translate into a healthy profit figure but I’d suggest that this stock is primarily for gaming aficionados – i.e. those who can figure out whether 32Red’s competitive advantage is here to stay. The healthy balance sheet, cash flow and dividend may also attract some value investors. I’ll keep a watching brief on these shares for now.

- See more at: (TTR), the online gaming business, delivered a nice set of results on Friday, although they were greeted in a lacklustre fashion by the market. After a huge run up in price over the past year, investors seem cautious that the share price might now fully “up with events”.

Licensed in Gibraltar (where else?), 32Red offers the online casino experience you’d expect: slots, roulette, blackjack, poker and a variety of other games. They have a sports-dedicated site amongst a variety of sister sites.

The latest results show 32% organic revenue growth, or 63% growth if you include the contribution of last year’s acquisition of a rival casino.

(Note that “Revenue” in the gaming industry refers to Net Gaming Revenue: that’s wagers minus pay-outs minus bonuses and some other standard items.)

One of the major problems facing gaming in recent years has been the UK’s Point of Consumption Tax – as with many taxes and regulations, this has the effect of driving smaller and newer competitors out of business, while empowering more established enterprises.

Fortunately for 32 Red, it was large enough to withstand the effects of the POC and decided to use the opportunity to seize market share.

Last year, it increased net gaming revenues by 52% against 2014.

The momentum has clearly continued in the first six months of 2016.

The problem is the market cap of £115 million, putting a fairly high rating on can often turn out be a commoditised product.

Online gaming is a highly competitive space, and especially in the casino business where many products can be replicated by developer teams at rival firms. While those with existing scale have an advantage, the competitive dynamics seem to revolve mostly around to the marketing budget.

32% revenue growth should translate into a healthy profit figure but I’d suggest that this stock is primarily for gaming aficionados – i.e. those who can figure out whether 32Red’s competitive advantage is here to stay. The healthy balance sheet, cash flow and dividend may also attract some value investors. I’ll keep a watching brief on these shares for now.

- See more at:
Posted at 29/7/2016 16:35 by paleje
They don't comment on margins in their trading statements, Shaker44, look back. There's no point in them hyping things up, what's in it for them? They're good management with an excellent track record, the interims in a few weeks will dispel doubts or not, we'll have to wait but I don't see anything odd in their presentation today.

The only thing I would have liked would have been a brexit view particularly where they're situate, they may think it's not worth a mention but most boards are commenting on it when issuing relevant RNS's. Investors like reassurance but historically good though they are, commuication has never been a strong point here. Just imo.
Posted at 29/7/2016 16:16 by shaker44
I think the drop is entirely due to the results presentation. Hyped up the revenue growth by claiming 63% even though a large part of that was an acquistion which figured in this year and not last so a false comparison.

But mostly as NO comment on margin or profits. The no comment naturally leads to a conclusion that they were disappointing hence the focus on the hyped growth in revenues.

The BoD trying to be clever and assuming investors are less smart than them maybe?

When they know all investors care about profit not t/o it looks pretty naive to me. And many investors will not take much comfort from Numis TP of 200p.
Posted at 15/7/2015 16:18 by paleje
At the risk of over-posting, just saw a 3i article on top ten growth stocks, TTR are no.7:-

Top 10 growth plays right now
By Stockopedia and Ben Hobson | Wed, 15th July 2015 - 13:32
Share this
Top 10 growth plays right now When it comes to hunting for tomorrow’s great growth shares, investors often face the prospect of paying rich prices for glamorous names. Yet one brand of growth investing offers a chance of capturing dynamic performers before the rest of the market catches on. Indeed, the Growth at a Reasonable Price, or GARP, strategy is a hallmark of some of the world’s best-known finance legends.
Investors like Peter Lynch and Jim Slater made their names in the pursuit of high growth companies. But they hated the idea of overpaying. Like other growth investors, each of them was laser-focused on companies with a track record of accelerating earnings. But they employed a nifty measure called the PEG - or price-earnings to growth ratio - to ensure they weren’t overpaying for that growth.

How PEG investing works

In his book One Up on Wall Street, Lynch (who was a successful fund manager at Fidelity), observed that "sooner or later earnings make or break an investment in equities." He showed that if you can pick up a stock with price-to-earnings ratio that’s less than its growth rate, then you may have found a bargain. Lynch worked out the PEG by taking a company’s trailing P/E ratio and dividing it by its forecast earnings per share (EPS) growth rate.

The theory of PEG investing is that you should aim to buy companies on PEGs of less than 1. By doing that you squeeze more growth for each pound invested. For instance, a glamorous growth company on a P/E of 20 growing at 30% per year would be on a PEG of 0.66. But a company on a P/E of 10 growing at 5% per year would be on a PEG of 2.

Protection from overstretched shares

Well-known investor Jim Slater popularised the PEG among UK investors during the 1990s. However, he calculates it by using the forecast P/E ratio, rather than the trailing P/E. Slater's PEG has been criticised for effectively "double counting" earnings growth (because it’s a component of both the forecast P/E and the forecast EPS). However, Slater combined his PEG with a several other growth indicators in his search for stellar stocks.

Importantly, Slater viewed the PEG as guide to robust growth shares. He wanted to avoid the sorts of frothy P/E multiples that can make some shares susceptible if investor confidence is shaken. In his book The Zulu Principle, he said: "Finding shares like these will ensure that you have the maximum chance of capital appreciation, and will at the same time provide you with an important safety factor."

Screening for GARP shares

To get an idea of the sorts of small-cap companies that are delivering earnings growth but remain on low PEGs, Stockopedia screened the market for Interactive Investor. The table also includes a GrowthRank, which scores and ranks companies using five individual growth measures, including historical and forecast earnings and sales growth.

Name Mkt Cap £m
PEG Rolling
EPS Growth % Rolling 1y Growth Rank Sector
Mortgage Advice Bureau 126.9 0.75 26.2 97 Financials
Telit Communications 341.6 0.42 68.0 96 Technology
HellermannTyton 731.1 0.85 20.4 94 Industrials
Solid State 73.1 0.52 42.9 93 Industrials
Iomart 259.1 0.50 47.0 92 Technology
Maintel Holdings 73.8 0.55 27.4 90 Telecoms
32Red 50.8 0.54 26.7 90 Consumer Cyclicals
Adept Telecom 46.9 0.29 79.4 80 Telecoms
VP 305.2 0.72 23.8 86 Industrials
Cambria Automobiles 61.0 0.63 17.7 76 Consumer Cyclicals
Among the companies making the list is Mortgage Advice Bureau (MAB1), which runs a franchise network of mortgage intermediaries. That's followed by communications technology business, Telit Communications (TCM), and HellermanTyton (HTY), which specialises in cable management systems in the industrial sector. Telecoms and electronics have a strong presence, with components manufacturer Solid State (SOLI), telecoms services firm Adept Telecom (ADT), managed hosting company Iomart (IOM) and communications specialist Maintel Holdings (MAI) all featuring. They’re joined by online casino and betting operator 32Red (TTR), equipment rental group VP (VP.) and auto dealer Cambria Automobiles (CAMB).



(click to enlarge)

With the benefit of hindsight, this portfolio of GARP shares would have generated a 27% return so far in 2015, compared to 10% seen on the FTSE SmallCap XIT index.

While the likes of Peter Lynch and Jim Slater have made names for themselves by netting spectacular returns from growth stocks, it can be a risky strategy. The strongest sales and earnings growth tend to be found in smaller companies, which are susceptible to sudden setbacks. While the PEG can be a line of defence against overpaying for growth, frothy prices can still leave investors exposed if problems arise. But there’s little doubt that with detailed research, GARP investing is an appealing approach that targets what can be the most dynamic companies in the market.

About Stockopedia

Interactive Investor's Stock Screening series is written by Ben Hobson of Stockopedia.com, the rules-based stockmarket investing website. You can click here to read Richard Beddard's review of Stockopedia.com and learn more about the site.

● Interactive Investor readers can enjoy a 2 week free trial and £50 discount to Stockopedia using the coupon code iii014 - click here.

● To learn more about Ben Graham and his deep value investing strategies, you can download the FREE Stockopedia book, How to Make Money in Value Stocks

It's worth remembering that these and other investment articles on Interactive Investor are simply for generating ideas and if you are thinking of investing they should only ever be a starting point for your own in-depth research before making a decision.

*No fee for publication is involved between Interactive Investor and Stockopedia for this column.

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