Gvc Share Discussion Threads

[loganair] 29/3/2017 08:51

Personally I much prefer a small general dividend with a larger Special Dividend as this puts far less pressure on a companies finances.

In GVC´s case this may be a prelude to another take-over and therefore by paying Special Dividends GVC will not have to announce another suspension in divdend payments as it did with the BWIN take-over to clear the loan taken on to pay for the said take-over.

[jfishy55] 29/3/2017 05:31

"They have also already told us how dividends will go for 2017."

I've missed that somehow - whereabouts did you get it from please?

TIA.

[cheshiremoggie] 29/3/2017 00:13

Velod,Your posts have always been interesting and although I'm not a fan of TA you have every right to post here especially as you haven't in any way said anything unreasonable.Please carry on! As far as the dividend is concerned anyone familiar with GVC RNS announcements will tell you that GVC said it would not be paying normal dividends for 2016 (partly due to financing restrictions).Hence the specials (they didn't have to do it but,hey that's GVC)They have also already told us how dividends will go for 2017. There will be 2. A smaller (interim) and a larger (final). One third , 2 third split.At least 50% free cash flow.(Please correct me if I've got the detail wrong)Of course acquisition may mess all that up but currently we have no reason whatsoever to think things will occur in any other way than the company has told us it will. I believe the maker is expecting about 34c this year? So an 11 / 22c split.I'm hoping that was old news and the co can give us at least 14/28c.Nice.CM

[kuss1] 28/3/2017 23:58

You can't predict price volatility. As for GVC, it's making an awful lot of money at an increasing rate in a bull market...

[fenners66] 28/3/2017 23:20

Velod for what its worth I saw nothing wrong with your post - its an interesting tactic we all have considered.

[velod] 28/3/2017 21:59

You are one horrendously intolerant, angry old man, Woodhawk. Is there any one poster on this forum that you have NOT been both ill-mannered and angry towards, at some time or other?

. . . Perhaps you should hold a mirror in front of you when you speak, so that only your own opinions are reflected back at you.

[woodhawk] 28/3/2017 21:53

I was going to comment on your disingenuous post, velod, but I can't really be bothered and I think I'll just join Festario in filtering you. Bye.

[velod] 28/3/2017 21:39

Sorry to post of offering no positive support, nor allay your fears to your hope that the share price doesn’t revisit 720p Berberic, but that’s exactly what I think you will see pop up some time during April. I can almost guarantee it! (Well that’s a figure of speech rather than a guarantee. Perhaps I should say I will be most surprised if it does not see 720p at any one point during April).

. . . Back in the day share price drops during XD periods in GVC have usually been quite steep (as long holders of many a year will testify) and much, much, more than the 1.5%/2% you suggest. A year or so before the acquisition I had set up a spreadsheet for the XD periods, and if memory serves me right, for the first divi of the year paid in February, it averaged a 7% drop at its steepest and for all the other quarters it averaged a 5% drop each. This was typical for all the preceding years before that too.

. . . I tried capitalising on this, and did reasonably (modestly) well, swinging in and out until I bumped up against rumours of some takeover by GVC and scrambled to get back in as the price ran away from me and only got in by the skin of my teeth at a good low average by absolute sheer chance late in the day after XD period had ended, when it dropped unaccountably to 399p (from mid/higher 450p’s etc) and I swooped in (even though it dropped again several months later to 370 odd). I finished that “experiment" with the average share price I still hold today - 427p.

. . . So that put an end to my taking advantage of the big drops during XD periods.

. . . However, GVC is not AIM now, and is also experiencing the reintroduction of divis (as pre-planned) so the characteristics of XD drops for GVC are yet to be established in this new landscape. But I’ll be a monkey’s uncle if your fear of 720p does NOT show its face at some point in the coming XD period somewhere in April.

. . . And what if it does see a figure in the low 700p’s? It will not mean shorter’s at work, because the steepness is distasteful to some. Nor underhand machinations of the market. It will mean absolutely nothing at all (apart from a buying opportunity if one is so inclined). It will just be a traditionally characteristic and above all TEMPORARY “normal” XD drop for GVC - that’s all.

[jfishy55] 28/3/2017 17:19

Berberic,

I was concerned that the dividend is a special and not a normal dividend and therefore I think the company is sending a clear message that the dividend is not to be relied upon.

On the one hand, the city expects a dividend to be increased as time goes on (although I am always wary if a company slavishly sticks to paying a dividend to the point where it exceeds cashflow/profits), whereas GVC seems to be playing a game of "we are not making any promises".

On the other hand, I think cashflow easily encompasses the special and therefore the board may be trying to hedge their bets (by issuing a special) in case they need cash for a takeover, in which case they may not pay a dividend and instead use the cash for a buyout.

In my opinion I see both outcomes as a positive (unless one is dependent on income rather than capital growth).

[berberic] 28/3/2017 16:15

It's more the steady daily sub 1% decline that draws a close resemblance to Q4 2016. Over a month it soon adds up to a lot of capital. But hope the market is more positive in this quarter. There is certainly no shortage of good reasons to be positive but markets can be weird at times. I'm in it for the long haul and very much look forward to the good things to come.

[oohrogerpalmer] 28/3/2017 16:13

Berb,
If it dropped a £1 it's no loss,
It's only a loss if you sell !!

[woodhawk] 28/3/2017 15:33

berberic, if a couple of percent drop in s ahareprice is worrying you, either don't watch the share price all the time, or get out of the market! For info - with only 2 posts you seem to be new to this - the last drop caused by an ex-divi day was soon dwarfed by the rise in the share price that followed. Chill out!

[berberic] 28/3/2017 14:42

I hope we don't drop down to 720 again. Ex divi won't help, that will be another 1.5-2% drop in the day. What's the consensus on the next company statement date ref potential future quarterly divis?

[mylands] 28/3/2017 09:39

For all the positive words from Ladbrokes about the 2016 results announced today the market response is very muted with the shares down 2p.

We likewise are moving down from the high last week of 767p. We go ex div on Thursday 13p.

[oohrogerpalmer] 27/3/2017 16:53

Nurdin ,
Yes they could do that with some of the shops but my vision of high street bookies these days is that the people that use them wouldn't have access to fund online accounts ie cards / bank accounts etc.
I would think a lot are cash customers and wouldn't use it , i haven't been in a bookies for 10 years now because of online and suspect that cash rules on the high street ??

[nurdin] 27/3/2017 16:22

I would convert all the brick and mortar outlets to on line betting premises,with PCs,super speed broadband and TV screens....just a thought.

[srpactive] 27/3/2017 16:08

If we were to do a deal for wmh, I would hope
KA would involve PE, to take the shops and we
have the online.

[oohrogerpalmer] 27/3/2017 15:55

Yeh thanks for info,
So from that point the bricks & mortar shouldn't be too much of a problem.
Take the online bits and let the leases run out?

[festario] 27/3/2017 12:52

Thanks Speed. That sounds more normal.

[speedsgh] 27/3/2017 11:56

From WMH's recently released 2016 Annual Report...



"Around 90% of our shop estate is leased. The average remaining lease length, including break clauses, is just over three years. The average lease cost per LBO is c£22,000 per annum."

[loganair] 27/3/2017 09:40

Fes - That was me who posted the info from the WHM accounts.

[festario] 27/3/2017 09:32

Roger, I recall that someone posted information from WMH accounts that the average lease was 10 years, which I found astonishing.

[oohrogerpalmer] 27/3/2017 09:22

I would imagine that most shops are leased !!!
Don't know what sort of time span they are on but if somebody took them over they would probably just let the leases run out ??

They do have a very good sportsbook which would suit 888 before GVC then take 888 after they have sorted them out.

[loganair] 27/3/2017 09:17

Most the William Hill retail out lets I have seen are rather on the small side, maybe OK for a small coffee shop and that´s all.

[nurdin] 27/3/2017 09:04

Does the management really see value in brick and mortar gambling business? Cant see the rationale there,unless they intend to convert the assets to corner shops!