Betonsports Share Discussion Threads

[bomfin] 05/6/2006 16:06

Happily holding and looking for a possible double in share price before year end. imho dyor

[moogies] 24/5/2006 10:26

Growth Company Investor has tipped these as a BUY. 23/05/06



M.

[moogies] 19/5/2006 10:06

Press comment:





With BetonSports shares trading at just nine times forward earnings, the company is one of the cheapest in the industry. Buy, says The Independent.






Eastern promise

The online gaming company Betonsports added 3p to 160p as it doubled its presence in the Asian market with the acquisition of Hooball and its 777ball betting site for an initial $22m (£12m).

The businesses mainly take bets from China, where the online gaming market is said to be growing at about 34% a year, and last year made a $3.6m profit. Betonsports, which also has operations in the United States and South America announced a 12% rise in full-year profits to $14.9m and gave an upbeat outlook for the current year.

Analysts at Altium Securities like the look of the business, especially given recent moves to strengthen the company's management team, and have an add recommendation on the shares.





Betonsports Plc (BSS LN), an online gambling company, rose 3 pence, or 1.9 percent, at 160, after it agreed to buy Chinese Internet gaming brands Hooball and 777ball for as much as $38 million, doubling its business in Asia.

``We see China as a 'must-be-in' market,'' said Chief Executive Officer David Carruthers. Asian punters tend to bet more than their American counterparts, making the region more attractive for investment, he said.

M.

[balcee] 18/5/2006 11:12

Couple of buy recs following this morning's presentation...nice to see an increased price target too.

* Numis has a buy rating and increased target of 267p from 246p for BetonSports
* Altium Securities reiterates its buy rating for BetonSports

Agree with you bomfin, Q2 results are key and £2 is a real possibility in near future.

[bomfin] 18/5/2006 10:25

Turnover for 1st quarter suggests $3 billion is possible for year. If they get their margin up to near the 5% mark again then we're looking at a possible £50 million after tax. If 2nd quarter backs up this possible scenario could double within a few months. World Cup should help. imho dyor

[moogies] 18/5/2006 09:37

LONDON (SHARECAST) - US and Asia focused online gaming group BETonSPORTS said it looks ahead with 'careful optimism' as it revealed a 12% rise in full year pre-tax profit.

Profit before tax, including exceptional items, rose to $14.9m in the year to February 5 from US$13.3m in 2005.

BETonSPORTS also announced it has strengthened its presence in Asia with the acquisition of gaming site Hooball for £12m. BETonSPORTS said it would integrate the business into its Malaysia-based Easy Bets network.

"The on-line gaming industry is exciting, fast moving, changing rapidly and growth orientated. The opportunities are excellent and the Board is optimistic about the prospects for future business and trading," the group said today.

BETonSPORTS said it had signed up 9,126 new active players in the first quarter, up 128% from the year before.

[balcee] 18/5/2006 07:59

Broker Analysts meeting at 9am, we should see recs coming in after that.

[balcee] 18/5/2006 07:57

Excellent results and acquisition to boot!

Key Points

BetonSports buys two Chinese internet sportsbooks for $38 million maximum; full-year pre-tax up 12% to $14.9 million; full-year gaming volume $1.8 billion, up 25%; earnings per share after exceptionals 14.3 cents, up 9%; proposes dividend of 10 cents, up 26%; strong performance of fourth quarter maintained in first quarter; first-quarter betting volume $735 million, up 171% year-on-year; first-quarter gross win margin 3.5% vs 5.8% year earlier; first-quarter gross win margin value $26 million vs $16 million year earlier; looks ahead with careful optimism; to increase marketing spend in second quarter; names Scott Waller as technology director

[balcee] 17/5/2006 09:28

Bit of movement today...we could see a nice retrace to around 170 before results tomorrow morning.

[woozle1] 16/5/2006 16:58

Totally agree. This has great upside. The company has very little poker and casino revenue, and the cross sell from sports into poker and casino is very strong once there is shared purse technology. I can't believe that BSS have not checked out the impact on cross sell for Betcorp. If BSS can't put in the the technology, then I am sure that someone else will do it for them.

W

[balcee] 16/5/2006 15:26

Recommendations from various brokers in the past month...

------------------
20th April
Numis has a buy rating and 246p target for BETonSPORTS

28th April
In a positive note on the online gaming industry Numis has buy ratings for BetonSports, Empire Online, FireOne, NETeller and PartyGaming, an add rating for Sportingbet and a hold stance on 888 Holdings.

15th May
Altium Securities reiterates its add rating BETonSports

16th May
Numis has a buy rating for BetonSports with a 246p target
------------------

Definitely worth going for at these levels. Strong buy.

[woozle1] 16/5/2006 14:24

totally agree but we'll have to wait for the market to stabilise before getting the full benefit.

w

[balcee] 16/5/2006 14:17

BSS results will be out in 2 days. Could be a great buying opportunity, especially after today's drop.

[nissi beach] 12/5/2006 12:51

THURSDAY MAY 18
Shares in BETonSPORTS PLC tumbled in the wake of last November's profits
warning, but subsequently rallied on the back of news that the powerful American
Gaming Association has changed its view regarding online gaming. AGA wants a
congressional study to examine the regulation and taxation of the online gaming
market.
This, according to Greg Feehely of Altium Securities, inspires confidence
that the prohibitive bills placed before the Congress have less chance of
success. This should be taken as very positive news for the entire online gaming
sector, the analyst says.
Feehely, looks for year to Jan 2006 pretax profits of 19.6 mln usd, up from
13.3 mln. He expects the total payout to rise to 7.8 pence from 7.4, payable
from EPS 18.2 pence against 12.2.
Meanwhile, the analyst believes BETonSPORTS has got off to a very good start
this year.

[nissi beach] 28/4/2006 10:01

so MS trimmed holding by 3m and credit ag picked up 2m of them

Has MS put the money them elsewhere in the sector

[nissi beach] 26/4/2006 14:53

Woozle some stats for you

Average cost of acquiring a customer $2005

BSS 335
SBT 368
VIP 256
EH(new LNG casino buy)186
Nine (new LNG buy) 155

[nissi beach] 25/4/2006 17:33

MS cutting there holding again

[nissi beach] 21/4/2006 10:00

anyone else noticed VIP casinos being advertised on threads or is it just me

I am sure i spotted it yesterday

Can you let my know on the LNG thread

Thanks

[nissi beach] 20/4/2006 12:47

Reverse float was very successful LNG went shopping for VIP at 88p which in turn made the price rise to 130p. They could repeat the performance and LNG would be over 200p

The management seem very capable so be it organic or acquisition they are delivering EPS growth, which is the main driver of SP

On BSS is Morgan Stanley buying again?

Good luck either way for BCL and BSS

[woozle1] 20/4/2006 12:34

Financial engineering is a bit strong but it looked like a reverse float and I prefer businesses that come to the market and not the other way around. It seems that BSS is finally getting some momentum. Let's hope it sticks!

W

[nissi beach] 19/4/2006 12:12

woozle explain what you mean by the term "financial engineering"

There initial year may have been more acquistion than organic but they picked up some cheap buys

have watched Bet corp and you could be right Directors of LNG founded/run it so they might buy it

[woozle1] 19/4/2006 11:38

Nissi

i agree with you. what the market has yet to appreciate is how strong the cross sell has been from sports into casino and poker. You should check out Betcorp that recently shifted its listing from Australia and that is in process of being turned around. the two thing that stand out are: (i) how quickly these businesses get turned around and (ii) the strength of the cross sell. Currently 15% of their sports book play poker and that is rising; and 20% of sports play casino. In BSS case the numbers are low single digit, so the scope to growth from casino and poker revenue for BSS is huge and that is before you factor in a turnaround in the sports book.

I don't like LNG as its more financial engineering than business; where as SBT and BSS are pure businesses. Your are right about SBT having a better share in casino and oker but there in lies the opportunity for BSS and why it is looks so compelling. If they can even achieve small amount fo what BCL and SBT have achieved in cross selling poker and casino, the shares are substantially undervalued.

W