Gan Share Discussion Threads

[mip55] 01/4/2019 11:34

Agreed. The one good thing is that, even with a private equity approach, any sale will have to be a substantial premium to where we are today. But let us hope for a nice bidding war eh?

[noujay] 01/4/2019 11:13

I have considered whether something like that could be the angle although given where the money came from initially I can't see why the large holders would be keen not to get their return.The only defence against it for retail investors is a significantly improved share price (ie they can't undersell it if it's fully valued) and given a value gap is exactly what they are attempting to narrow with this process I don't sense that's the play.However like you I've seen enough to know there could be machinations beyond the obvious!

[mip55] 01/4/2019 11:07

Hit the nail there Noujay, guaranteed jobs and bonuses for the board, a larger share of the company, sit back and watch the profits roll in for a few years and then put it back on the market and retire. I really hope it won't happen again but, having experienced a cosy scheme of arrangement being pushed through at PAYS I don't see this review through rose tinted glasses.

[noujay] 01/4/2019 10:57

What would be the benefit to a cosy sell off? Take it private, hold a larger share and then spin it out again for a far higher price later?They've already got so much of it that I'd think that if a sale is the primary goal at this stage, the best possible price would be the target.

[mip55] 01/4/2019 10:45

A word of warning...... I took my profits from Paysafe to invest in GAN after PAYS was sold - with management connivance- to Private Equity at what was a PI shafting price. This share is relatively tightly held with a substantial board ownership of the company. Perhaps I am being cynical but I do pray that history is not about to repeat itself and that we see some genuine approaches from other players in the market rather than a cosy sell off.

[noujay] 01/4/2019 10:08

That ARPDAU is growing very nicely indeed. Stick those numbers on a graph and moving very nicely indeed.Once PA goes online it'll go much higher.

[busterdog2] 01/4/2019 10:03

“So we have today openly invited the Industry, and private equity interests, to engage directly with Union Gaming should they wish to better understand the merits of our business, our US market position and the opportunity for US Internet gambling in future years“

[molatovkid] 01/4/2019 09:30

If GAN's in the shop window it needs to start showing its wares....so I would hope to see good news released

[metis20] 01/4/2019 09:28

First Quarter 2019 Highlights (published at 9:21 today)

This Quarterly publication discloses the Active Player-Days, Average Revenue Per Active Player-Day (ARPDAU) and Gross Operator Revenue, in which GAN participates worldwide in regulated real money Internet gambling markets and Simulated Gaming™.

· Gross Operator Revenue, which comprises the sum of gross revenue from Simulated Gaming; gross gaming revenue from real money regulated Gaming; and gross sports win from real money regulated Sports betting, increased 148.3% year-over-year and 41.4% quarter-over-quarter to $59.1 million. This increase was driven by strong growth in real money regulated gambling in the US.

· Active Player-Days increased to 5.3 million, an increase of 65.6% year-over-year and 14.4% quarter over quarter.

· Exceptional growth experienced in New Jersey driven regulated Internet Sports betting.

[busterdog2] 01/4/2019 09:27

KPI’s looking good!

[ny boy] 01/4/2019 09:24

Let the bidding war commence!

[noujay] 01/4/2019 09:01

That 2.3m revenue from Winstar is split down the middle after initial costs are covered. What they are I am not sure at this point but certainly given they are 15% through the marketing spend there is plenty more to come which should fall onto the bottom line.Glad to see that revision from Regulus - makes it fairly clear that the future of this share is north bound.

[noujay] 01/4/2019 08:05

Regulus just this morning updated their Friday write up:UPDATEGAN provided some important clarity in its investor call that was not clear from its 2018 results. First, a combination of strong trading (Q1 KPIs out next week) and the PPB US contract extension means that net cash has grown to over £7m in Q1, a £1.5m increase on YE, while the group expects to be EBITDA positive this year. Consequently, the cash burn position is materially more sustainable than the H218 results would suggest if current trends continue. Second, more detail was given on WinStar.com (Chickasaw non-US online RMG casino partnership, largely UK facing), which has generated c. £5m deposits and £2.3m revenue to date: this is much stronger than the accounting treatment would suggest and again gives confidence with regard to underlying business momentum and cash generation. GAN will provide more performance clarity in its Q1 update.

[igoe104] 31/3/2019 18:20

Should expect a big mark-up tomorrow ???????

I'm happy for a takeover at huge premium, hopefully over a £1.

[busterdog2] 31/3/2019 17:32

Bearing in mind the complexities involved I think we can dismiss a Nasdaq listing. That leaves us, from a shareholders viewpoint, with at least two very attractive alternatives, especially as is stated in the conference call transcript, there has been a number of unsolicited enquiries received year-to-date from various Industry stakeholders including private equity interests. Interesting times ahead I think.

[noujay] 31/3/2019 15:59

80p would be a disaster for retail investors and a complete cop out by large holders. Strictly IMO of course.I agree with much of what you say. If the CEO can talk it up so the price bumps significantly, then attaching a premium to the new number might look more like what I have in mind!Ideally I'd like to see 2019 play out with more real money on stream plus additional legislative momentum, which should see an organic upturn in price.

[mip55] 31/3/2019 15:05

Still think it's the CEO talking up the company ( no bad thing!). Just look at the reaction of some PI s when a firm is saying they are exploring a U.S. listing - witness the speculation and almost drooling at the prospect, coupled with the speculative buying of stock prior to the move.Looking at the prospect realistically though ......we are a loss making Company with 130 employees not even listed on the main market in our own country. We are seeking to join one of the most prestigious exchanges in the world - or perhaps, lowering our sights to the Chicago, Boston or Miami exchanges. IF we managed to acquire a seriously big partner there'd be a chance we might be considered for membership but for now? Realistically? Just to reiterate my own position GAN is my largest holding. I think the product the company has is both unique and potentially huge and, although I honestly believe our corporate communications to be just about the worst I have ever witnessed in terms of writing RNS statements, no -one is getting my shares for under 80p!!

[noujay] 31/3/2019 14:02

Well it's not medium term now after Friday's announcements which seek a better valuation for shareholders in 2019, so either they wrongly think it's feasible in the near term (given that investopedia's reference would indicate that it's not) or they believe there is a different and perhaps slightly more nuanced route to achieving it?

[mip55] 31/3/2019 13:34

It COULD happen, given the profits GAN are envisaging, but medium term probably means years away.

[mip55] 31/3/2019 13:32

Gan, the gaming software company headed by Dermot Smurfit Jr, has said that its medium-term strategy is to seek a listing on New York's Nasdaq Exchange.

[noujay] 31/3/2019 12:40

It would seem absolutely impossible based upon that so I can only assume there are alternative ways to approach it else they wouldn't be openly discussing it as a possibility. Either that or there are other creative solutions on alternative exchanges which may be under consideration..

[mip55] 31/3/2019 12:07

Listing criteria for Nasdaq from investopedia - general requirements plus the following specific categories of application:In addition to these requirements, companies must meet all of the criteria under at least one of the following standards.Standard No. 1: EarningsThe company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the prior two years at least $2.2 million, and no single year in the prior three years can have a net loss.Standard No. 2: Capitalization with Cash FlowThe company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. In addition, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.Standard No. 3: Capitalization with RevenueCompanies can be removed from the cash flow requirement of the second standard if its average market capitalization over the past 12 months is at least $850 million and revenues over the prior fiscal year are at least $90 million.Standard No. 4: Assets with EquityCompanies can eliminate the cash flow and revenue requirements, and decrease its marketing capitalization requirements to $160 million if their total assets total at least $80 million and their stockholders' equity is at least $55 million.A company has four ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company. If a company does not meet certain criteria, such as the operating income minimum, it has to make it up with larger minimum amounts in another area, like revenue. This helps to improve the quality of companies listed on the exchange.After a company gets listed on the market, it must maintain certain standards to continue trading. Failure to meet the specifications set out by the stock exchange will result in its delisting. Falling below the minimum required share price, or market capitalization, is one of the major factors triggering a delisting. The exact details of delisting depend on the exchange.

[noujay] 31/3/2019 11:25

Can you elaborate on the mechanics of listing a stock in the US? It may well not be straightforward but it would seem very strange to do frequently allude to it without it being of serious consideration.Appreciate some detail on that if you can provide.

[metis20] 31/3/2019 11:15

GAN far too small for Berkshire Hathaway

"Efficient markets and Berkshire Hathaway’s size could be two reasons behind the company’s modest performance over the last decade. Buffett has also missed on some stocks like Amazon (AMZN) and Alphabet (GOOG)."