Agreed. The Directors are over rewarded. A Takeover is best outcome here |
 Haven’t seen Peel Hunt today - just Canaccord.
Bottom line from them:
“GMR trades on a CY24E/25E EV/EBITDA multiple of 7.0x/5.4x, which feels too low given the forecast growth and increasing North American exposure (43% of content licencing revenues / 35% of Group). We believe that Gaming Realms has a number of attractive attributes. These include: 1) significant growth potential; 2) exposure to regulated markets; 3) proprietary and differentiated content and a leading distribution platform; 4) a highly scalable and profitable capital-light licensing model; 5) an experienced senior leadership team and Board; and 6) strong profit margins with scope for further growth. We retain our BUY rating and 50p TP (c.10x CY24E EV/EBITDA).”
Garmin, I agree that they should be pushing for new growth and that the cash gives them the opportunity to do that - but I also agree with the above from canaccord that the current price doesn’t reflect CURRENT growth potential. Adding on the opportunity you are talking about, this stock has plenty to justify a step up in pricing. |
WJCCGHCC
You’re correct that GMR will be entering West Virginia later this year. I meant that there are no new states authorising online gambling this year. Maryland was the only real hope but that’s now highly unlikely.
I don’t think the market is going to accept GMR patiently waiting years for further state legislation. The company needs to show real growth ambitions in the more immediate term. It has plenty cash, let’s see it being reinvested in the business. |
PeelHunt has published a new research note apparently.
Anypne has access? |
For such a small businesss, the admin costs seem inordinately high.
Also Execs paying themselevs handsomley and rewarding themselves with share options.
Methinks this could be gravitating to a 'lifestyle company' |
Bought in here some 4 years ago, sold half on the double.
It's a good business but a boring share, treading water since 2021,
The reason being its' P/E ratio, which I estimate at c. 20 as per today's figures.
While that has come down from higher, my finger's still itching on the sell button... |
West Virginia is opening this year. |
Disappointingly muted response to an excellent set of results and a positive statement on their outlook for the year
What more does the market want for the share price to reflect the company’s performance? |
Great results, as expected, but the company now needs to deliver a vision for it’s future.
It’s likely there are no new states in the US opening this year and probably next. Growth in the single Slingo brand won’t continue forever. The company needs to present it’s vision for the next five years.
I don’t think the market will reward the company if it simply waits for more US states to sell its Slingo brand.
The company is building a substantial cash pile, I’ll like them to update the market on how they plan to grow the business with this money. |
Nice piece on gaming realms Around the 63 minutes mark
Worth a listen
On today's Easter stock picking fest, I was delighted to speak to accomplished investor John Hugham of Vox Markets – including:
ttps://www.voxmarkets.co.uk/articles/the-exchange-7f80804/ |
Gaming Realms
6,234 followers
16m
We are now live with DAZN in both the UK 🇬🇧 and Spain 🇪🇸 !
From a week ago
We are thrilled to announce we have gone live with BetConstruct in the UK!
Source LinkedIn |
Source interactive investor
Online gaming firm Gaming Realms
GMR
0.57%
moved into profit in 2021 and it has been accelerating ever since. The easing of online gaming regulation in the US has provided much of the momentum for growth. A limited number of states have legalised online gaming and there could be others that follow suit over the long-term.
Gaming Realms develops and licences games for mobile, and major gaming firms are clients. The main brand is Slingo. There is a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game, to produce Tetris Slingo mobile. There is also a social gaming operation that does not involve cash betting, but this is becoming less important to the group.
Games developed can be launched in different markets around the world, and the number of countries that the company is involved in is rising.
In 2023, revenues were at a record level of £23 million. Underlying EBITDA was at least £10 million, which means that pre-tax profit could nearly double to around £6.4 million.
Net cash was £7.5 million at the end of 2023. That figure could double this year, which shows the cash generative potential of the business.
Growth is coming from adding additional partners and moving into new countries. West Virginia is the seventh state where Gaming Realms has licensees. Variable costs are 20% of revenues. A 2024 pre-tax profit of £9.2 million is forecast. The shares are trading on less than 14 times estimated 2024 earnings. |
Article from investors chronicle today
Rest is hidden behind paywall
Gaming Realms (GMR) shot up to near the top of our latest growth at a reasonable price (GARP) screen, passing all of our tests. Last time around it came in near the bottom of the rankings, having failed our earnings per share (EPS) downgrade and share price (and/or) earnings momentum tests. This makes it a good time to take a fresh look at the developer and licensor of mobile-focused gaming content, which broker Investec argues "is a rare gem in the B2B [business-to-business] gambling space |
Doesn't appear to have had a 'positive' effect with the share price continuing to drift downwards, with another penny off today. |
New operator lauch
We are delighted to announce we have launched with bet365 in Ontario!
Source LinkedIn |
Gaming realms gets a interesting mention on voxmarkets by Paul Hill video podcast right at the end, not listed on the running order but is there
ttps://www.voxmarkets.co.uk/articles/hot-stocks-on-vox-markets-0149557/
Also a couple of new markets expansion
We are beyond excited to announce we have expanded in Sweden and Romania with PokerStars
We are pleased to announce our games are now live in Spain with OlyBet Group
Source LinkedIn |
Three chunky trades just posted after the market closed, all done at 3pm, at 36.5p. 700k, 200k and 500k. |
Great company but the U.K. market just doesn’t reward companies such as this.
Going forward, I’ll like to see a move away from AIM to the US. I don’t want a dividend but would rather see the cash holdings spent on growing additional revenue streams. The company grew it’s cash pile by some £3m this year and at the same time paid off £3m of debt. On a conservative basis, that should mean £13m in cash next year. That’s a decent amount to acquire additional products.
The US regulation is moving slower than expected. From my reading, only Maryland has a realistic possibility of approving online gaming this year, but not until November. There are two other states that have legalised online gambling - Rhode Island and Delaware. Unfortunately, with populations of around 1million each, I suspect these may be too small for GMR to complete the authorisation requirements.
Great company but would like to see more ambition in developing it further. The games they have today are clearly in demand, but that won’t be the case forever. With state authorisation taking longer than anticipated, the business needs to grow other revenue streams. |
Nice positive mention from Paul scott for gaming realms on his small cap podcast |
And 3 years ago making nada |
35p 3 years ago35p today |
They have to decide if the net cash is excess capital or not: they might want to invest it in new products or buy a business with it. We might get some idea of their plans in the next annual report and accounts. |
Bet it wont be a divvi - more like a share buyback. I wonder why? |
TU was more or less in line with previous guidance:
* EBITDA Net Cash
Marketscreener expected £10.25m £7.98m
Today's trading update Not < £10m £7.5m
Sorry I can't make a neat table right now. The above figures are meant to be in columns under the heading, EBITDA, and in the second column under Net Cash |
With the way the market overall is trading, sideways, and moving down, investors will take any opportunity to trim their holding with a spike up in an SP, as we are seeing today with GMR.
I like the buy rating forecast of 50p by Cannacord, that's an uplift of over 30% from the 37.9p buy price now. |
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