Gvc Share Discussion Threads

[cheshiremoggie] 07/9/2016 10:11

While early reinstatement of dividends would be great, why would Cerberus agree to give up millions of $ of interest just to be nice to GVC?Alternatively, since Cerberus get one years interest in any case, why would GVC agree to pay two interest payments for the next few months on cash they don't need?It makes no sense financially (to the tune of millions of $) to reinstate dividends early.At least that's the way it looks to me...

[mylands] 07/9/2016 09:55

Having originally invested in Gaming VC, as it was then way back in 2007, for the sole reason of the incredibly good div return, the quicker I start receiving divs again the better.

I take your points as well reasoned, so thanks for that.

Another reason you may well be correct is that two recent events, both of which IMO warranted an RNS, the Romanian Licence and the inclusion into the 250, have gone unreported by the company. Maybe they are thinking it's best not to blow their trumpet too often and simply let the markets decide what is good news.

[velod] 07/9/2016 09:40

I actually hope no mention of progress on the dividend reinstatement is made at all until the finals are released next spring.

There have been numerous gifted 'silver bulets' released all this year each giving strength to the share price The next two silver bullets are on the 19th & 20th of this month. There's enough positiveness there without squandering the influence of mentioning the divi progress in tte trading results RNS.

Then very late in the year will be another 'silver bullet' trading update about the final quarter's progress which I have no reason to doubt will be anything less than well received.

Why show all your best cards in one go?

Hold back any mention of the divi reinstatement for as long as possible before releasing details.

That would be the final gift of the silver bullets after which the share price would be solely reliant on trading progress/ updates alone.

[mylands] 07/9/2016 08:12

With Nomura lined up to provide the finance to replace the Cerberus loan when it comes up for the earliest repayment date in Feb 2017, I wonder if Kenny will pull another rabbit out of the hat by announcing with the interims on the 20th that, following agreement with Cerberus, the re-financing will take place earlier. Now that would pave the way for a resumption of dividends much sooner than any of us are predicting. What a lovely boost that would be for the share price Nice to dream.

[srpactive] 07/9/2016 07:29

Well the board will be preparing the dividend re-commencement date
and what a big date that will be.

dyor

regards

active

[velod] 06/9/2016 23:38

InvestmentGuru @ 750p by end of the month?

- Close InvGuru, close, but too low.

. I'll take your bet and raise you 20 :)

- The share price by end of September stands an 80% chance of exiting the month in the 770p's ( 774p! )

. Game on?

PS. That 80% probability is not a random figure plucked out of thin air :)

[festario] 06/9/2016 15:54

Most of the gaming sector is down about 1% today, because currency is recovering, people are betting on that.Shares marginally less attractive

[powerpack] 06/9/2016 15:27

Tree Shake?

[festario] 06/9/2016 11:58

But... large funds won't overpay either, no feeding frenzy here.They'll accumulate at an average target price but they won't chase it.

[festario] 06/9/2016 11:43

I think funds are coming in now, quantities of 50k shares and 175k shares are surely accumulated lots of worked buys (or sells?), which are only declared when the whole deal is concluded.

[mylands] 06/9/2016 08:44

Touching new highs.

What is good to see on SETS are some sizeable buy orders at 709p/710p, underpinning the current bid price of 711p. Could it be tracker funds in the market for GVC stock, ahead of the inclusion to the 250 on September 20th?

Spoke too soon!

Maybe not.

[woodhawk] 05/9/2016 14:46

Agree re HSBC, I also bought at 445p and a little higher - now my third largest holding (GVC is largest). Excellent cap gain thus far, and great divi too. Also doing well with ISAT, BRK and LGEN. Brexit notwithstanding, its been a great year for me.

[this_is_me] 05/9/2016 14:40

mylands

I bought HSBC at 446 earlier this year. It is still looking undervalued even without the drop in the value of the £.


Another new high for GVC. It has taken over 2 years for me to almost doubly my money on these. Anyone who bought in 2012 has done really well.

[brownie69] 05/9/2016 13:24

Tracker buying begun?

[investmentguru] 05/9/2016 09:14

It will be interesting to see whether the FTSE250 inclusion and trading update will push us up to the 750 mark by end of month.

[srpactive] 04/9/2016 11:20

coxsnm

prty and bwin merged and they were both worth £1bn.

[mylands] 04/9/2016 10:34

From today's Sunday Telegraph:

The Sunday Telegraph has learnt that CVC is in the early stages of planning a £1.5bn stock market debut for Sky Bet. It is understood the private-equity firm is eyeing a float early next year in co-operation with pay-TV giant Sky, which holds a 20pc stake in the gambling business it offloaded in 2015.

It will be interesting to see what multiple they are using for the valuation.

[woodhawk] 03/9/2016 17:48

Good overview, coxsmn, thanks.

[coxsmn] 03/9/2016 17:28

All the ongoing consolidation among online companies aims to increase profit margins through economy of scale, market share due to rising cost of gaming duties/taxes. In the case of GVC this is exactly what they have achieved firstly acquiring Sportingbet then beating 888 to the jackpot and acquiring BwinParty (not forgetting Partygaming paid £1m for Bwin). Unfortunately for 888 they have so far failed with two acquisitions, furthermore a larger percentage of their business is UK facing and margins being hit by higher gaming taxes.

[coxsmn] 03/9/2016 16:32

Festario, agreed but in the case of GVC, larger profit margin through economy of scale, efficiency and business diversity is a good thing.

[festario] 03/9/2016 14:54

Been thinking about this today, sometimes it's better to show that the punters are winning, big and often, or how else will the same ones keep returning? ..and new ones recruited?Bigger margin is not everything.In fact I worked for a company which had 4 other main competitors in the sector, we prided ourself on having the biggest % gross margin.Sadly, % is not cash and we were the first of the five to go out of business. We effectively killed off our offer with high 'margin'Just a thought.

[coxsmn] 03/9/2016 12:51

GVCs better profit margins is a big advantage, especially when you consider for every £1 of revenue increase GVC makes, 888 would need almost £1. 60 to achieve same increase in profits.

[coxsmn] 03/9/2016 12:00

888 forecast profits are ~12% of revenue, GVC is a handsome ~19%.

[nurdin] 03/9/2016 10:25

ecoover,ADVFN numbers are historic,ie 2015.A lot of water has passed under the bridge since then. GVC are trading on a prospective (2017) pe of 14.5.Still very cheap.

[ecoover] 03/9/2016 09:30

It must happen.