32red Share Discussion Threads

[knighty0001] 28/10/2015 12:47

Fingers been hovered over the sell button since 80p. Managing to hold of so far!

[festario] 28/10/2015 11:57

You'd be getting taken over if anything.Most likely 888 as they missed out on BPTY

[paleje] 28/10/2015 11:50

Any idea who we'd be taking over?:)

[rogash] 28/10/2015 11:43

Possibly a leak, takeover?

[ulinbac] 28/10/2015 10:28

Got a SB at 87.07 for JUN-16 @ £7.50 yesterday. Something is happening. No tips I could find yesterday.

Where you see the NUMIS tip?

[paleje] 28/10/2015 10:16

Have we been tipped somewhere? If we get a general market Nov/Dec rally I can see us topping 100p towards Jan trading statement. Numis's 160p might take a bit longer.

[celeritas] 08/10/2015 11:26

Going well, nearing an old high early 2014.

[clive205] 08/10/2015 07:27

Hi bamboo, yep. 78p wasn't a problem. Mid 80's could arrive quite quickly with buyers at 81+ yesterday.

[bamboo2] 07/10/2015 10:24

Bought in earlier this morning on confirmation of the chart pattern.
Resistance at 78 seems to have been pushed away.

[bamboo2] 06/10/2015 11:32

Hi Clive205 good to see you still around.

I just picked up on TTR mentioned on the the zulu thread. Based on Bulkowski's stats, I've drawn a chart based on the INVH&S pattern that looks like will be confirmed today with a close above 75. Target is 90. Possible resistance around 78. All the best.

[clive205] 06/10/2015 07:57

As well as that article, following the recent results announcment ST at Investors Chronicle updated his price target to 90p.

http://www.investorschronicle.co.uk/2015/09/29/comment/simon-thompson/building-momentum-B6qw0ah9o8if0Kkf74EaJN/article.html for those who are registered.

Chart looks good - just bounced off the 20 Day MA and the CCI/MA Crossover indicator printed a green up arrow. A close above 75p would be very positive.

NAI etc. DYOR.

[paleje] 28/9/2015 09:16

IC articled 32Red on Friday, I don't know whether in time for their hard copy magazine which appears on Fridays but it was on their website:-



Looking straight at the bottom line it could be assumed 32Red (TTR) has lost control of the roulette wheel. Cash profits dropped 45 per cent to £1.2m due to a point of consumption tax (PoCT) charge of £2m and the group's investment in Italy, where it is seeking market share. But underlying revenue, excluding Italy, rose a fifth to £17.7m, driven in part by a 22 per cent rise in the number of active casino players to 62,214.

Chief executive Ed Ware said he was "not worried about being able cope with PoCT" and suggested it could "actually be a positive, dare I say it". This was, he added, because the levy had prompted many smaller businesses to exit the industry and forced some of the company's larger competitors to curb their marketing spend to offset the cost increase.

Mr Ware said the market had also "not perceived" how advanced 32Red's marketing ability was, now it has moved to a return on investment approach that relies on data and is far more targeted. He said the company now usually got the money spent on recruiting a customer back in 60 days.

Numis, which upgraded its revenue predictions on these results, expects pre-tax profits of £5.6m in the full year, leading to EPS of 6.5p, compared with £5.7m and 7.1p for 2014.

32RED (TTR)
ORD PRICE: 76p MARKET VALUE: £63m
TOUCH: 75.8-76.5p 12-MONTH HIGH: 78p LOW: 35p
DIVIDEND YIELD: 3.3% PE RATIO: 26
NET ASSET VALUE: 5.9p* NET CASH: £6.7m
Half-year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2014 15.2 1.2 1.6 1.0
2015 18.6 0.1 0.1 1.1
% change +22 -91 -94 +10
Ex-div: 1 Oct

Payment: 30 Oct

*Includes intangible assets of £2.16m, or 2.6p a share

IC VIEW:
Management expects to hit its full-year profit targets in spite of PoCT, not least because so far it is 52 per cent ahead of its second-half comparables. The Roxy Palace acquisition gives it access to the Netherlands, which is deliberating over gambling legislation. On 12 times forward earnings, the shares aren't as cheap as they were, but still look worth the gamble. Buy.

Last IC view: Buy, 60p, 09 March 2015

[paleje] 24/9/2015 11:00

Spooky - I'm obviously not privy to management game plan but I imagine it will be increased revenue plus a combination of controlled costs and marketing synergies with Roxy. If you look at the numbers you'll see that if they hadn't invested 1m in Italy the actual profit figure, in spite of POC, would have been very close to 2014, not a bad achievement.

I've got an extract from an IC article from July, it's got some FY analyst forecasts in it:-

Roxy generated cash profit of £1.6m on gaming revenue of £10.1m in 2014, so the exit multiple is a reasonable five times cash profits. Moreover, as 32Red's chief executive Ed Ware rightly points out the acquisition fits well with his company's regulated markets growth strategy and will allow the business to leverage the expertise that the Roxy team has built up over many years in international markets to the combined benefit of the enlarged business. Synergy benefits and cost savings are likely to be significant through the cooperative marketing of both company's brands across a number of territories.

In fact, analyst Ivor Jones at house broker Numis Securities believes that the net cash profit contribution from the acquisition will be £500,000 in the 2015 fiscal year, rising to £2.5m in 2016 (calendar year-end). On that basis, and after adjusting for the impact of the UK Point of Consumption duty, Numis forecasts that 32Red will deliver pre-tax profit of £5.1m and EPS of 5.9p in the current financial year on revenue of £42.5m, rising to £8m and 8.8p, respectively, on revenue of £55.4m in 2016. That represents a thumping 28 per cent upgrade on Numis's previous 2016 EPS estimate and is enough to warrant Mr Jones revising his target price on the shares up by a third to 120p.

[spooky] 24/9/2015 10:11

Yes i know that having NGR up 52% is great but if you are not making any money on it after the POC tax charge how do you value the business?

[papinvestor] 24/9/2015 08:40

First results including the POC tax and not made a loss. I can imagine this will not be the same across the sector. Im my eyes market cap still undervalued considering the growth. Profit making will be key in the next 6 months though.

[paleje] 24/9/2015 08:29

All down to 2nd half which seems to have started brilliantly with NGR up 52% as opposed to 22%. Management confident for full year and divi raised 10% shows confidence. Pity the Italians are talking about introducing a POC tax, no idea of timescale and only a small part of revenue anyway but a high growth one so shame if it gets clobbered.

[spooky] 24/9/2015 08:25

Any thoughts on how you value this; the business is doing very well until you include POC, at which point it doesn't make any money,

[celeritas] 24/9/2015 08:18

Revenue up but pre tax down, mixed results.

[cheshire man] 23/9/2015 16:06

Some decent buying ahead of tomorrow, DYOR

[mortimer7] 23/9/2015 15:00

TTR had its “buy” rating reiterated by stock analysts at Numis Securities Ltd in a report issued on 22nd July 2015 after the most recent trading update.
They currently have a price objective of 120p.
Numis Securities target indicates a potential upside of 69% from the closing price on 22nd September ahead of interim results due to be published on 24th September.

[celeritas] 16/9/2015 16:59

With continued momentum in earnings growth, 32Red’s valuation is attractive. It currently has a P/E ratio of 15.4, but as analysts expect underlying EPS will grow 26% to 5.9 pence in 2015, its forward P/E is just 12.0. For 2016, analysts expect underlying EPS will grow by another 49% to 8.8 pence, which means 32Red’s shares trade at 8.1 times its expected 2016 earnings.