Gvc Share Discussion Threads

[trentendboy] 14/10/2017 11:58

Plus cost savings would be massive

[trentendboy] 14/10/2017 11:57

Lads has under performed for years and online was a mess before PTEC took overThe brand is so globally strong though. Could be on the ground presence globallyAs a lads shareholder underwater the potential is very strong. Previous management very poor

[shaker44] 14/10/2017 11:51

I guess KA has been around the block enough to avoid the siren calls of fee earning advisers. I sure hope so

[noujay] 14/10/2017 10:47

I don't doubt that the sportsbook and customers are the core bit, neither that a negative review outcome will cause a negative shock to the Lads price.None-the-less there were reports of the bid being worth 3.6B and rising to over 140p per share based on the review outcome, so GVC must feel there's deep underlying value.Personally I would sooner go for something else unless they can get Lads for something approaching a steal. Obviously if the price craters to sub £1 then it could start to look very attractive but if they were talking at 3.6B it doesn't seem a steal is in the offing. I only take heart from KA's ability to toss it in the bin if it doesn't fit. There would be plenty of pressure and encouragement to make a deal of this size, a lot of big fees to be earned around it.

[loganair] 14/10/2017 09:21

As far as I understand the average punter, the many thousands spend less than £10 per FOTB session.

[trentendboy] 14/10/2017 05:43

Interesting insights Fest.When you watch live casino roulette then people often bet 100 or more per spin as standard.I suspect you might be right that revenues will fall dramatically Would be interesting to see the stats on the machines to see how many punters bet at those high levels

[noujay] 13/10/2017 19:07

I'm not sure the fall would be quite so pronounced Fest. The sheer weight of the brand and huge customer base are the enticing aspect for GVC.Plus restricting the limits - would it logically just mean that people gambled over a longer period?There's some interesting stuff on the Regulus update tonight, pasted below:UK: In Parliament – You Wait 50 Weeks for a Review; and Then Two Come Along at OnceWith yet a few weeks to go until Halloween, the ghosts of gambling regulation present and future were spied in Parliament this week.It was a week in which the Secretary of State for Digital, Culture, Media and Sport, Karen Bradley (Cons, Staffordshire Moorlands) told a select committee hearing that her department's proposals for "a wide ranging review of gambling" would definitely be published for consultation by the end of the month.A full 50 weeks have elapsed since Bradley first announced the review; more than 300 days have passed since the end of the first consultation phase. During that time, a good deal of water and evidence has flowed under that particular bridge, sweeping the industry at large into dangerous currents.It is not obvious from Bradley's comments whether the scope of the review will spill over from machines and advertising into broader areas but the risk of its doing so certainly seems to have increased. The initial consultation was designed with flexibility in mind, offering respondents carte blanche to raise gambling issues; while political and media scrutiny of gambling matters has also expanded.The Deputy leader of the Labour Party, Tom Watson MP (Lab, West Bromwich East) has run out of patience with the tortuously slow pace of the DCMS process, launching his own inquiry into gambling in Great Britain. This week, he and his party colleagues offered a number of clues about the issues they consider in need of attention. Watson himself submitted seven parliamentary questions on a range of issues including adequacy and independence of funding for dealing with harm, levels of crime associated with gambling and the extent of gambling addiction in Great Britain. Pointedly, four of his questions were directed at the Department of Health, which historically has shown little interest in problem gambling.Ronnie Cowan (SNP, Inverclyde) also pressed the Government on the need for a statutory levy to tackle gambling-related harm. This has been a consistent theme for Cowan and he may be encouraged by the seemingly analogous Government proposal (within its Internet Safety Strategy) to impose a social responsibility levy on social media companies.Other matters under the microscope included gambling or quasi-gambling by children (with concern from Plaid Cymru's Jonathan Edwards and Labour's Daniel Zeichner); Government spending on harm reduction (Jim Cunningham, Lab, Coventry South), money laundering (Kelvin Hopkins, lab, Luton North); powers to allow local authorities to revoke betting shop licences (Bob Seeley, Cons, Isle of Wight); and complaints about gambling affiliates (Lord Smith Of Hindhead).Meanwhile, Early Day Motion (174), calling for action on FOBTs gained another three signatures - the SNP's Douglas Chapman, Labour's Gerard Killen and the DUP's Gavin Robinson. The motion now has the support of 42 MPs, making it the 30th best-supported EDM before Parliament (just below the call for "passports for people who do not associate with a particular gender").The silver lining for the industry came in the form of a statement from the Minister for Foreign & Commonwealth Affairs, Alan Duncan (Cons, Rutland and Melton) that the Government had set up a working group to "discuss mutual opportunities in the online gaming industry, where Gibraltar is a global leader."For those suffering from nervous exhaustion, the good news is that a meaningful Government announcement does at last seem to be at hand; the bad news (for an industry that needs to be able to look ahead) is that whatever emerges after a year of Government scrutiny will not be the end and may not even be the beginning of the end. It does at least promise to be the end of the beginning.

[festario] 13/10/2017 17:47

Given that the high street bookies will lose the majority of their profits from FOTB being restricted in the way I expect, then I expect a fall greater than 50% in their share price.It could be much more.They know this.Plus, it could be worse for them as the crippling fixed costs of the betting shops will still remain on the balance sheet.In that scenario they will be unviable businesses, and the likes of GVC buying them will be a lifeline for them.

[brownie69] 13/10/2017 16:45

Regarding trying to ascertain the impact on the relative SP's in such a transaction. I dont think we can say at this point without knowing the terms of such a deal.

what I will say is that Kenny has a track record second to none in the industry for doing deals and has delivered huge value to us each time. I see no reason to doubt that he can pull it off this time. Huge synergies bound to exist between the businesses.

I recall in particular at the time of the Bwin deal that some on here were concerned at the dilutive effect of buying a larger business (you know who you are!!). This completely missed the point that the deal was accretive in terms of EPS once fully integrated and we are rapidly closing in on the completion of that process without a hitch. The share price has of course responded accordingly.

[nurdin] 13/10/2017 16:34

If he is serious I think his comment is best ignored

[kop202] 13/10/2017 16:32

FestIf I was a LADS share holder I think I would choke on my corn flakes at such an offer

[nurdin] 13/10/2017 16:32

Buy LCL at 50p? Arent they trading at around 130p currently? I must be missing your point

edit...oops I see sractive has made the same point.

[srpactive] 13/10/2017 15:48

Fest

What is your C scenario 888?

LCL at 50p really, now 129p?

[festario] 13/10/2017 15:13

Share price reaction to a LADS acquisition.A, if we merge with LADS at a share price higher than theirs is now will dilute the larger group and the GVC shares will fall in value.B, if we acquire the whole issued share capital at around 50p, it will enhance the overall value of the larger group, and we'll be off toward 1200p.The only deal Sir Kenneth will be looking at is option B.

[noujay] 13/10/2017 14:08

That would be ideal but there's clearly an appetite for more scale to defend against regulation etc.Either way it doesn't feel like we are in a trading moment right now. Perhaps it is blue sky time!

[srpactive] 13/10/2017 14:02

Or not,and grow organically.

[noujay] 13/10/2017 13:41

I agree share price I'm still not convinced that Lads is the only decent option and with the review looming there's a way to go yet. I don't think it's a bad option but it's not a complete no-brainer either.What is clear that whilst GVC continue to trade in this vein then they have their pick.

[mnomis] 13/10/2017 12:41

I agree with that (on a longer term view). I am thinking shorter term reaction, but I guess time will tell.

[shaker44] 13/10/2017 12:29

KA and advisers will already know the views of major fund managers. He will only construct a deal that enhances share price in my view.growth is for vanity, profit for sanity

[srpactive] 13/10/2017 12:17

It would surprise me if it is done, KA is a very good poker
player, so telling everyone who you want to buy is not usually
a good tactic. Now if he was doing it to put people off the scent,
then I could. I still think 888 could be the target, dyor.

[mnomis] 13/10/2017 11:40

So, with GVC / Lads apparently being a "done deal", and I assume GVC being the acquirer in the "merger", does this mean we should be taking some profits (I did lighten the load a little a while back on a portfolio re-bal, which I of course in hindsight regret). Thoughts on share price reaction to deal announcement?

[mylands] 13/10/2017 11:15

I wonder what Macquarie are thinking of their 865p target price?

Great to see the share price holding yesterday's rise and even trying to move ahead. Need some consolidation before the move above £10. Maybe in the new year when the post y/e trading update is released. This year it was on the 11th January.

[norry2] 13/10/2017 10:25

Reaching 900p means that I have now doubled my money on GVC. Does that make it a bagger or a two bagger?

I have to say I sold 15% of my holding yesterday at 885p - mainly because GVC was becoming too high a proportion of my portfolio.

[loganair] 13/10/2017 09:34

What I've been reading when it comes to the FBOT is that the maximum stake will be reduce to between £10 and £25 with spins limited to 1 per minute as currently I understand one is able to spin ever 20 seconds or even less at the moment.