Gvc Share Discussion Threads

[mylands] 03/1/2018 08:31

Have just had to edit my last post as a new institution IG Investments have released form 8.3 showing they hold 4.34 million shares. Total now just shy of 84%

[srpactive] 03/1/2018 08:23

L

Excellent post as I only expect from you.

M

Yes buying into the next ftse100 darling to be.

[mylands] 03/1/2018 08:20

Loganair

Thanks for the Barclays re-rating, all good news!

Institutions (32) now hold 255 million shares, 83.91%. Since the deal was announced there has only been one trading day where the total they have held has reduced, on all other days it has increased.

[loganair] 02/1/2018 22:18

Shares in GVC Holdings zipped higher early Tuesday after analysts at Barclays gave their backing to the sports betting firm’s £4bn takeover of rival Ladbrokes Coral Group.

That deal was announced just before Christmas and will create one of the largest gambling groups in the world.

Patrick Coffey – from Barclays’ well-respected London investment banking arm – reckons the takeover is attractive for three reasons.

“1) Greater scale: a key attribute in the gaming sector in our view, 2) High growth: buoyed by revenue but mainly by cost synergies, and 3) Geographic diversity: guarding against higher taxes in mature markets,” he wrote in a note to clients on Tuesday.

Coffey also notes that both management teams have a “strong track record” of integrating complicated businesses and beating synergy guidance – which it currently expects to be "at least £100mln."

As a result, the analyst has initiated his coverage of GVC with an ‘overweight217; rating and a £10.66 price target.

Shares in GVC jumped 1.8% to 942p early on Tuesday, making it one of the top gainers on the FTSE 250.

[trentendboy] 02/1/2018 14:28

GVC is a cash cow and a winner from all of this fall out.

It is a truly remarkable run and there is a long way to go yet - once the US opens fully they are in a very strong position to exploit the market and have the marketing fire power to do it (and top quality brands).

888 look very vulnerable now - I hold 888 but am not sure I like the way things are going - the current strength includes a healthy TO premium IMO which is fine but... the bottom line needs to be maintained.

GVC have exactly the right strategy - 100 million cost savings from LADS straight off - makes 150m give away (which it is not) look cheap

[mylands] 02/1/2018 12:46

Noujay

I agree it's unlikely the deal will fail, but as others have said, our CEO is no fool.

The institutions keep adding to their stake in GVC, now up to 81%, with the latest arrival on the scene, Jeffries International with 2.47 million shares (0.81%).

[srpactive] 02/1/2018 11:51

m

I was only thinking of that last night, as if they
have not sold it, they have given it to the other
company maybe just for safe keeping if things at Lads do
not go as expected, KA is a poker player not a fool.

[noujay] 02/1/2018 11:40

Honestly there's little chance of this falling through now I'd think, everyone involved wants it and to some extent everyone needs it going forward

[mylands] 02/1/2018 11:36

Active

Agreed!

I wonder if there is any sort of 'compensation' clause in the takeover agreement which says that in the event the takeover does not proceed, then LCL will pay the 150 million (Euros/£s?) that GVC has given up for the Turkish business, paid over 5 years?

Most likely not, but it would be nice to think that if it all falls apart we won't have given up the Turkish cash cow for nothing.

[nurdin] 02/1/2018 11:29

mylands..yes fair point.

[srpactive] 02/1/2018 11:10

M

Yes well done, but your buying price was the correct one.

[mylands] 02/1/2018 11:08

Nurdin

The 'loss' of the Turkish business must account for some of the de-rating, if the LCL takeover does not go ahead. Turkey was a major contributor to the bottom line for GVC.

Closing in on my end-of-year target price of 950p. If we reach that today I will have only been out by a couple of days!

[nurdin] 02/1/2018 10:31

Edisons have issued a new note this morning..no target price but very bullish:

[oohrogerpalmer] 02/1/2018 10:28

It's Barclays remember, can't think they have anybody there with enough intelligence to do any proper research.
Probably pulled it from a cracker at Xmas dinner!!!

[noujay] 02/1/2018 10:21

Exactly what I thought. It was trading higher than where we are now pre the announcement

[nurdin] 02/1/2018 10:18

Why would GVC derate to WMH multiple if the merger doesnt complete? Odd statement

[rbcrbc] 02/1/2018 09:12

Interestingly there was a significant problem on the partypoker system last night.
Many tournaments were cancelled part way through.
It took about an hour for any statement to come to admit a problem, which sounds reasonably quick, but if you are staring at a computer screen with $100 or so of your cash and you don't know if the problem is your end or the server end it feels like a long time.

All online poker co's have this occasionally and as long as it doesn't recur it shouldn't affect their position. It will be interesting to see if they ever issue a statement as to what happened. And they do seem to be sorting out the 'lost' money in a reasonable way.

[srpactive] 02/1/2018 09:08

The same multiple as basket case WMH with shops,lol.

[brownie69] 02/1/2018 08:39

Barclays have initiated coverage with 1066p Price target. Could be causing todays early uptick.
However they do have an upside and downside case and say that if the Lads deal does not complete they think the stock will fall to the William Hill multiple which would put it at 669p. Apologies for caps.

PRICE (29-dEC-2017) GbP 925
PRICE tARGET GbP 1,066
fiHY oVERWEIGHT? Gff¢ IS A GAMBLING COMPANY, LISTED
ON THE Ftse 250. iT HAS GOOD GEOGRAPHIC DIVERSITY AND
OPERATORS A RANGE OF WELL KNOWN SPORTS AND GAMING
BRANDS. tHE BUSINESS HAS GROWN RAPIDLY VIA m&a.
GIVEN Gff¢'S TRACK RECORD, WE THINK IT CAN EXECUTE THE
POTENTIAL MERGER OF l¢l SUCCESSFULLY AND GENERATE
SIGNIFICANT COST SYNERGIES (GUIDANCE IS FOR 'AT LEAST
£100M').
UPSIDE CASE GbP 1,092
iN OUR UPSIDE ¢ASE WE USE PADDY POWER bETFAIR'S
¢ffi18 P⁄e MULTIPLE OF 19.6X AND ASSUME Gff¢ RE-RATES
TO THIS LEVEL TO REFLECT ITS HIGH GROWTH, MOMENTUM AND
POTENTIAL ePs ACCRETION FROM THE POTENTIAL l¢l DEAL
dOWNSIDE CASE GbP 669
fiE THINK THE BIGGEST SHORT-TERM RISK IS THAT THE
MERGER WITH l¢l DOES NOT COMPLETE OR IS DELAYED. iN
OUR dOWNSIDE ¢ASE, WE USE fiILLIAM HILL'S ¢ffi18 P⁄e
MULTIPLE OF 12X AND ASSUME Gff¢ DE-RATES TO THIS LEVEL
TO REFLECT THIS RISK.

[brownie69] 02/1/2018 08:35

Happy healthy and wealthy New Year to one and all.

[macarona] 01/1/2018 16:10

Happy new year to all.

So, what's the consensus GVC share price by the end of 2018?

[coxsmn] 31/12/2017 18:50

Mustn't forget 2018 is a World Cup year.

[mylands] 31/12/2017 14:08

Shay

My £100 will on its way to Shelter as I finishd up 25p below my target of 950p.

2018 here we come, GLA!