32red Share Discussion Threads

[bigdog00] 19/2/2016 08:29

Long time viewer first time caller.... I love this stock so much. Let's get back to basics on why this is a good operation. The CEO of 32 is a proven king of casino marketing. Him and his team have been thru the rice patties plotting and planning to produce the best customer service in the game. I challenge anyone to email their customer support and see how quickly they respond and go out of their way to be helpful and appreciative of your custom. Now go ahead and email one of the big 3 and see the difference. We as shareholders have been treated well too with dividends and share movement. High marks go for not wasting our money on rubbish acquisitions and instead making slow steady progress. Imagine where our share price would be if they got a few good institutional buyers on right now to add to all the individual punters! If I was running one of the larger operations and needed to add a whole team it would be easier to just buy this company. Very happy with the numbers and feel good about management. I've been in since 30-40p and topping off up to 148. In for the long road here with 32red and very excited to see where we go from here strategically. Cheers dog

[sharestobuy] 18/2/2016 15:19

At £1.58 currently there is still a long way to go on this. Next set of results in March and I'm sure they will be impressive as they were off to a flier at the start of january. Looking good here for further big gains

[redchef] 18/2/2016 14:28

Price rise looks impressive until you consider the 6% spread

[saucepan] 18/2/2016 14:11

Great strength today.

[sharestobuy] 17/2/2016 11:36

Dividends this week and I'm sure further gains in share price

[paleje] 11/2/2016 14:39

On Tuedsay IC articled these again, they reiterated their advice to hold on and quoted Numis upgraded buy note, now targeting 200p. Bearing in mind Numis have been spot on here since before xmas, part of the article:-

News on the company's cash flow performance was better than I had anticipated and Mr Jones expects 32Red to have ended last year with net funds of £9m. To put this into some perspective, at the end of June 2015, 32Red had net funds of £6.7m and subsequently spent £2m of that cash pile on Roxy Palace with the balance of the £6.4m consideration settled by issuing 10m new shares. The bumper cash pile is now worth 10.7p a share and rising as Mr Jones predicts it will increase to 19p by the year-end, reflecting the highly cash-generative nature of the business.

This means that post last month's upgrades, 32Red's shares are rated on 11.7 times earnings estimates for 2016, or on 10.6 times net of its cash pile. That valuation still doesn't look too punchy to me and neither does it to Mr Jones who has a new target price of 200p, up from 160p previously. So with 32Red clearly thriving in the post-Point of Consumption duty gaming market, winning customers from operators unable to compete in the more onerous tax environment, and the Roxy Palace acquisition delivering, I feel it's worth running your hefty gains ahead of the next trading update on Thursday, 10 March 2016. Run profits.

[fozzie] 10/2/2016 17:51

A startlingly poor reaction to fantastic news, no wonder the board are looking at options here is it.

[djbilywiz] 10/2/2016 08:39

Special dividend is a nice surprise, a good positive sign IMO. The term "ahead of expectations" used once again in the statement. Looking forward to results in March.

[cezary2] 08/2/2016 16:24

buy before close
sell at midday

i wonder if that works!!

[dave2608] 04/2/2016 00:12

Other points. POCT is taxed on revenues at 15%, so margins will need to increase 15% just to remain at the same profit level as previous years. Now with this harsh tax some gaming operators will have just given up the ghost. Some will soldier on trying to weather the storm, realise they can't and pack it in. That leaves those left standing the chance for more market share or to bolt on acquisitions at low EBITDA to market cap ratios. As revenues increase, profit increases at a much higher rate than revenue as a lot is dropping straight into the bottom line. This means the margins will increase at a significant rate and we know revenues at the moment are turbo charged.

This POCT has had the effect of consolidating the market and those companies in prime position should, if they are managed properly, make some serious hay. It is likely that much more consolidation will take place. Imagine if after a period of more consolidation the EU chucks out this POCT, meaning this 15% of revenue stream drops 100% into the bottom line. That would lead to some massive profit increases.

I hope I've got my logic right here and somebody tell me if I haven't but this share looks like it's still got massive potential. I really can't see a bear case other than some serious macro. I suppose it needs enough investors to see the big picture for it to go shooting up again.

[kevph] 03/2/2016 23:00

Interested behind the thinking on £1 if you want to share? Just looking at the profit growth figs and must admit I'm bullish despite the profit takers and tree shakers around. The data suggests up, but the trend is down, so all views appreciated.

[sharestobuy] 03/2/2016 22:55

I'm with dave on this one. I believe this company has huge potential with the speed in which its growing as a business. Every companies share price no matter how big the potential needs a few retraces along the way as it goes up. Even in the short term I still believe this can hit £2.00 a share.

[sharestobuy] 03/2/2016 22:55

I'm with dave on this one. I believe this company has huge potential with the speed in which its growing as a business. Every companies share price no matter how big the potential needs a few retraces along the way as it goes up. Even in the short term I still believe this can hit £2.00 a share.

[dave2608] 03/2/2016 16:55

Another point is you're compounding a 54% increase in revenues onto last years 52% increase. I'm pretty sure the company has no debt either. As you can tell I'm bullish.

A big factor with companies of course is can management be trusted with their RNS's/trading updates. Like I said earlier, they have a good track record.

[dave2608] 03/2/2016 16:19

The POCT was thought to be a hammer blow to the Industry as a whole but in reality what has happened is a lot of providers have been taken out of the market while those left standing, like 32Red, have taken their market share. 52% increase in revenue last year with a lot of it dropping to the bottom line and as revenue increases more will drop to the bottom line.

Quote from their last trading statement "Early trading in 2016 has been strong across the Company's products with revenues for the first nineteen days in January up 27% on the corresponding period in 2015 and up 54% including contribution from Roxy Palace." Yep 54%! Unless I've missed something and I stand to be corrected, that looks pretty impressive.

If this goes through, which is not inconceivable, they will have taken market share and will be able to claim back the POCT. A double whammy.

hxxps://www.freecasinohunter.com/news/uk-point-of-consumption-tax-referred-to-european-courts/

hxxp://www.racingpost.com/news/horse-racing/point-of-consumption-tax-referred-to-european-court/1915396/#newsArchiveTabs=last7DaysNews

[dave2608] 03/2/2016 15:57

Well they have a track record of delivering on promises. Why would they reverse that trend now?

[redchef] 03/2/2016 09:50

Does anyone else think that recent bullish announcements are an attempt to make themselves unpalatable to predators?

[eiresorpio] 03/2/2016 09:25

Ha, same here. Saw the 120p share price but ended up buying at 130p. Drat!

[hutch_pod] 03/2/2016 08:55

Yes. Although from the time it took me to go from wtf to buy, i'd missed the best prices :)

[d40eq6] 03/2/2016 08:44

Bit of a flash crash there! This auto trading does throw up opportunities...

[dippydodaa] 03/2/2016 08:11

More likely a fall back to £1 levels imo

[cezary2] 01/2/2016 08:55

How do you figure this rise to £2?

[sharestobuy] 28/1/2016 20:09

Not long now before the next big rise up to the target of £2.00

[betelgeuse1] 27/1/2016 15:44

Any idea if the recent news from Sweden (potential Government blocking of casino IP addresses)is a worry

[modform] 22/1/2016 19:12

Bought back again after the results yesterday, peg is still very low