Global Market Share Discussion Threads

[quotes_4_u] 27/10/2006 13:15

(6.25-6.75p monitor)

6.5-6.65p online, 250,001 v 75,000

All blue on L2...3 v 4.

Off out, update later.

[graylyn] 27/10/2006 13:03

Hi all just bought in, this is cheap imho. dyor good luck long termers hope it recovers for us all.

[red dog] 27/10/2006 12:58

sabretooth: quite right. Any good investor knew the share price was far to low and still is against the Companies fundamentals. STLL BEING TIPED AS A STRONG BUY. Only fools will stay out of this share now.

[jackthetrader] 27/10/2006 12:47

TA, £10m would be good. Let's settle on that figure then.

[crossfingers] 27/10/2006 12:41

Great seems most of us are praying for double figures just to break even! It would have been nice to get a wee divi for the long suffering PI's. Yesterday the 1.20p rise was the biggest seen for 20 months so that shows the extent of patience we have had to endure. Personally I reckon it is PRTY on the sniff as they have recently been advertising on the casino site tho' 888 use a fair bit of space on the site as well.
Now for the dense bit. I assume GMC/MDC or whatever is keeping gambling .com and will look to purchase lucrative portals to augment the travel and finance parts of their media advertising? Tho' I guess that could be in doubt if the pattern of use remains unpredictable as seems the case to date.
Onthebox .com comes up5th in its league of TV listing competitors on Alexa so clearly room to improve using the funds I guess. But its the travel bit that could be a money winner now. But a massive challenge to say the least.

What happens say if PRTY want to buy the whole lot of gaming business incl. gambling.com if the latter is not for sale right now. That would direct more folk to PRTY sites as well as Garber is clearly after World domination excluding the US or have I got that wrong too!

I guess we are now in a limited takeover climate awaiting a firm buyer and loadsamoney in the rumour mill so the price will hopefully be fuelled by that for now.

[sabretooth] 27/10/2006 12:37

thanks quotes - keep the L2 updates coming.

[quotes_4_u] 27/10/2006 12:37

Now 6.5p mid price bid for 250k...down to 75k offered, overhangs well
and truly cleared here, L2 continuing to improve all the time.

Expect some holding Rns's soon.

[sabretooth] 27/10/2006 12:36

Oct. 26 (Bloomberg) -- Gaming Corporation Plc, operator of the U.K.'s largest Internet casino site, has held ``initial conversations'' about selling its online gaming unit, Chief Executive Officer Justin Drummond said.

``We've had initial conversations with several parties,'' Drummond said in a telephone interview today. The talks were with online gambling companies whose shares trade in the U.K., he said.

[the analyst] 27/10/2006 12:34

Must be some sort of rumour doing the rounds. Could have been a bid already or maybe we have a few interested bidders? Time will tell I guess.

[sabretooth] 27/10/2006 12:30

am liking the look of this chaps. we're flying now...

[jerry170] 27/10/2006 12:21

general, LOL re: GMC (down when I post, or should that be up - typo on your part maybe)

[quotes_4_u] 27/10/2006 12:08

I'm repeating myself but the buy order is massive here !

Now 6.25p mid price bid for 250,001 online...6.4p offer for 250k.

[the analyst] 27/10/2006 12:06

"£10m seems optimistic for an underoptimised portal"

That's true for the portal Jack, but what valuation on the mobile gambling business? Also, what are the active real money players from the poker, skillgaming, bingo and instant casino sites worth?

[jackthetrader] 27/10/2006 11:56

PRTY must be favourite to buy. Doubt if 888 will be interested. A search of 'casino' on Google puts 888 in no.1 and casino.co.uk in no.2 or no.3 depending on version. If I were a gambling man I would bet on £5m for casino.co.uk. £10m seems optimistic for an underoptimised portal.

[quotes_4_u] 27/10/2006 11:54

Moving very fast on L2.

5 v 2 at 6-6.5p

[the analyst] 27/10/2006 11:49

Yes, I think 10p would be about right if they get £5m for the gambling business sabre. They would then have cash of about 4p per share, valuing the remaining marketing business at 6p per share, a market cap of £15m.

From the above quotes we know the businesses that are being kept (searchfocus and eyeconomy) made over £2m last year. If they only get £5m for the gambling business and subsequently move up to 10p per share, that would value the marketing business on a historic PER of 7.5 after stripping out the cash.

If they get £10m for the gambling business, they will obviously deserve a higher valuation than that

[sabretooth] 27/10/2006 11:39

I bet those who panic sold at 5p are now kicking themselves.
These will be back around 10p on news of the disposal.

[the analyst] 27/10/2006 11:20

Just picking up on a couple of those quotes from Drummond. He's hinting that they hope to get £10m for the gambling business. However, based on profit of less than £500k it would seem like a very high price, representing a PER of over 20.

It's possible though, that a competant and well-established gambling outfit like PRTY would expect that PER to reduce to 4 or 5 almost immediately - there will be big synergies and cost-savings in being run by a bigger gaming company with the infrastructure already in place and operating costs pretty much already paid for. If so, then £10m would seem about right.

Selling for £10m would see Mediacorp have almost 6p per share in cash by the time the deal goes through.


"The company has hinted it could be possible to sell its gaming business for the enterprise value of the firm"

"The unit accounted for less than 500,000 pounds ($940,000), or 20 percent, of Gaming Corp.'s profit last year, Drummond said"

[longwell] 27/10/2006 10:52

i need 12p to break even,looks realistic now after disposal is complete,good cash generating business,no tax at present and a good business model,will either grow and make holders money or be swallowed up before it reaches its potential.looks a good bet to make money in next 6 months on newsflow alone.

[batman9] 27/10/2006 09:50

Gaming Corporation (GMC) reported a 400% rise in pre-tax profit and realised net cash of £5.2m for the 12 months to 30 September 2006 as the firm confirmed its plans to ditch its online and mobile gaming business.

Shares in the London-based firm, which is proposing to change its name to Media Corporation as it restructures to broaden its advertising appeal, soared 20% to trade at 6p by 3.40pm. Management said the name change would reflect that "the group generates its entire operating profit from its portals and advertising businesses".

The company added that changes in US regulations would be positive for the valuation of both Casino.co.uk and the company's mobile gaming business since these have no US customers and derive more than 95% of their revenues from the UK market. "It is anticipated the sale proceeds could be significant and would enable the company to accelerate the growth of the media and advertising business further," said chief executive Justin Drummond.

Mark Reed, a leisure analyst at Teather & Greenwood, put today's share spike down to investors possibly realising the stock had been massively sold off after the introduction of damaging US gaming laws. "With cash on the balance sheet of £5m, an enterprise value of £10m and pre-tax profit of £2.5m for the year, it's on a pretty cheap multiple," he added.

"The other point is it's looking to sell its gaming business and focus on the portals, which historically make all the money and the company has hinted it could be possible to sell its gaming business for the enterprise value of the firm. That's the big hope."

As the company does not currently pay tax and has low capital expenditure, Reed also noted most of the £2.5m profit would be converted to cash. He has rated the stock a Buy, but added: "It is a very small stock - even smaller after its market cap was halved in the last six months to £15m - and it is too early to say how much it could realise from the gaming business."

Alison Swersky, staff writer, Bloomberg Money

[red dog] 27/10/2006 09:40

From UK-Analyst.com: October 26th 2006

It's not all doom and gloom in the gaming sector. Gaming Corp wisely proposed changing its name to Media Corp after it said that it expected full-year net profits to increase 400%. The earnings news gave the shares an 1p boost to 6p. The group also said that it was seeking a buyer form its gaming business and that it expected that the sale proceeds could be significant and would enable the company to accelerate the growth of its media and advertising business further. The company said that it expected full-year earnings per share to hit 0.9p compared with 0.2p in the prior year. Net cash almost doubled to 5.2 million pounds at the period end - worth 1.8p per share.

This share is well undervalued and will continue back up to 10p plus. Those not yet in, will miss all the fun and profit. Your choice.

[quotes_4_u] 27/10/2006 09:04

Confirm both buy and sell orders remain here.

Online spread is still 6-6.02p for 250k each now.

[red dog] 27/10/2006 08:21

Will the share price move up today, I expect it will to 6.5p or better. We shall see.

For all investors, this share is a great recovery stock, with its very strong balance sheet and share price could recover in a very short space of time to 10p plus. NOW A BLOODY STRONG BUY.

[crazi] 26/10/2006 21:20

Excellent results. Obvious why corporates and directors have been filling their boots. This little share is a winner. Buy and hold.

IMHO

Crazi...