Gvc Share Discussion Threads

[cheshiremoggie] 12/12/2016 10:09

Crikey - I'm not sure either that a deal that includes bricks and mortar would be any good.

Bricks and mortar are dead,dead and .... dead.

Look at the costs and complexity of running a shop... staff, rent, rates, cleaning, repairs (does KA do plumbing?), etc, etc.

Look at the reach of a shop.... 5 miles at best.

Why would I go to a dingy betting shop when I can bet on my mobile anywhere - my choice.

look at the reach of a web page - certainly national and up to global reach for a single page.
Look at the costs of a web page - software development/maintenance and server space - thats it.

Online has only just started - GVC are a player but there is a huge untapped potential that will keep KA and the team busy for a decade at least.

To illustrate that lets compare a shop challenge with a new online challenge.


Shop - where do I get a poster printed for the glass window at the front that wont leave a mess when I want to unstick it?

Online - "China" - over 1 billion customers - how do I sell an average of $1 a year to each of them?

Which do you think has the most potential?

CM.

[mylands] 12/12/2016 09:26

Morning all.

Personally I cannot see a tie-up with LADS being on the cards, especially now they have done the Coral deal.

Much more likely is a deal with WMH, but what they would do with the retail side I don't know, as I can't see there being much interest by others in the industry wanting to take on hundreds of shops with the problems of increasing regulatory issues, and competition from the online gaming companies.

The main thing in favour of a WMH deal is the relationship that Kenny built up during the SBT takeover and then the split between WMH and GVC, but is that enough to warrant such a mega deal?

Just noticed that LADS are down 10p to 120p, doesn't look like the market thinks a deal is on.

[trentendboy] 12/12/2016 08:55

A reverse RO of Ladbrokes is big news. I think it could be done and it is not actually a bad fit.

GVC have all the backend technologies to migrate the online and offline stuff.

PTEC would lose out if the tech went in house though.

Do GVC want a vast bricks and mortar empire? Why not, helps mitigate risk and there would be a lost of costs that they could strip out.

If they want to be one of the global gaming big boys this would do it. They have online sown up now.

[velod] 11/12/2016 19:20

Sunday night:

Well yet another week ended with the share price continuing its travails in bear country. Not buying the panic attempts of some in rumour mongering this retrace is due to nasty hidden ’irregularities’ or some such. It’s been in a noticeable retrace since late September and apart from the odd rally has continued to end lower and lower from that date to present. Disheartening or what? However the share price now lies at some notable and very important support levels. Support going into Monday is 620p and that’s notable for the sheer coincidence of also being the current 200day ma trend line - and that is a major support level. Defo don’t want to close below that! Also did a Fibbonacci retrace taking December 2015 as the low point to the high (at which the retrace commenced) which was late September - and low and behold the first Fibbonacci retracement level of 38% is showing as 618p.

So we have 620p as immediate support.
620p as the 200 day ma.
AND Fibbonacci coming in more or less just a tad under - all adds up to one helluva mighty support level! - if it holds.

And FWIW I think there were enough smallish signs on Friday to indicate it could also be the place where the bears once again, come to die.

Resistance is 642p which is “easily” a doable ask from here, to close above that. No one knows if this is the true ultimate bottom, but I can’t stress enough (INMO) the importance of NOT closing significantly below 620p next week. It’s a double whammy support level. Ultra strong in so much that a lot of stars are lining up to offer support around the 620p area but also a major worry in that if it closes below that level there will be absolutely no hiding place. None. This is going to be (INMO again) the granddaddy of support levels yet seen in trying to flesh out the limits of this retrace. The down trend is still in force but is this area, the low 600’s, the death valley for the bears - or for longs? It’s easy to say afterwards with hindsight of course the low 600 area was always going to be the bottom. From here I am slightly nervous. No one can know for certain. No one. When institutions move they utterly destroy all technicals and all fundamental estimations. And I’m convinced institutions have led the way in this retrace. The downtrend has not yet offered signs that it has bottomed. Failing to break 620p will.

Two notes of interest come next week. There are those who forecast worse to come. It is unnerving, but close around or just above 620 and it’s a weak retort of “well not today José “.

Close above 642 and its Hasta la vista baby! to the bears.

That's just a measly 7p north of Friday’s close. Is that too much to ask? Is it? It means so much. (Well it does to me at least :)

[diviincomesearch] 11/12/2016 13:57

As I've said before we need to digest Bwin party before we go for a further exorbitant takeover and leverage up the balance sheet. It just brings too much uncertainty. Much rather we get taken out at a premium!

[timanglin] 11/12/2016 13:44

Also remember that betfred is apparently going through s strategic review.

[festario] 11/12/2016 13:12

I'm naturally inclined to be against this move, unless Sir Kenneth has a master plan to spin the bricks and mortar bookies off to a third party.

[investmentguru] 11/12/2016 12:55

I'm not surprised Wm Hill want Kenny but lets see them pay £10/share for GVC if they do.

[woodhawk] 11/12/2016 12:45

As a potential takeover target, it's about time we closed 5.7% higher isn't it?

[nurdin] 11/12/2016 12:30

Here is the full article:

Ladbroke Coral was a gainer on Friday amid renewed rumours that the bookmaker is a takeover target.

GVC, the online betting specialist, was rumoured to have worked on a potential reverse takeover of Ladbrokes that could value its peer at around £3.2bn, a premium of about 30 per cent. GVC and Ladbrokes declined to comment.

Advisers to GVC were said to have put together an ambitious proposal similar to last year’s £1.1bn takeover of Bwin, which was paid for mostly in shares. However, discussions between the companies may have already collapsed, people familiar with the sector said.

The latest twist on consolidation talk follows William Hill reportedly floating the idea of buying GVC during unsuccessful talks to poach its chief executive Kenny Alexander.

Ladbrokes closed 5.7 per cent higher at 130.6p on about twice the average daily volume. Since reaching a two-year high in August, the stock has slipped 20 per cent on concerns about possible tighter regulation of betting terminals and problems integrating its merger with Gala Coral, completed in November.

[lloydc] 11/12/2016 11:51

Ladbrokes gains on takeover speculation

Financial Times-9 Dec 2016

GVC, the online betting specialist, was rumoured to have worked on a potential reverse takeover of Ladbrokes that could value its peer at ...

[lloydc] 11/12/2016 11:49

UK Industrial Production falls by largest amount in 4 years - FXStreet







4 days ago - Consumer Discretionary: [GVC Holdings GVC.UK -0.2% (WMH reportedly considering takeover)]. - Consumer Staples: [Ahold Delhaize AD.NL +1.9% (outlook, ...

[fizzypop] 10/12/2016 19:24

Gary I believe GVC publish the exchange rate used.

[garycook] 10/12/2016 03:50

So as of the current 1.19 GBP/EUR rate,the dividend will be around 8.40p,but will be more or less,when the actual payment is decided ?

[diviincomesearch] 09/12/2016 17:06

Yes, GVC are usually pretty short time wise in between the announcement and payment date going from their previous quarterly payment history

[woodhawk] 09/12/2016 16:01

Yes, seems I was wrong, the statement says:

"the Group intends to pay a special dividend of 10 euro cents per share in February 2017 in respect of the 2016 financial year. An announcement containing further details of the proposed special dividend, including record and payment dates, will be made in due course."

So, as they'll need to give notice of the record date in good time, I don't think the announcement will be that far away now, especially with the Christmas break looming.

[speedsgh] 09/12/2016 14:11

Not that I'm aware of, fizzypop, but happy to be corrected. I know there is sometimes only a week between dividend announcement & payments then going ex-div.

[fizzypop] 09/12/2016 14:02

GVC have stated the payment date as Feb 2017 so I assume the ex-divi date as the usual 3 wks prior which could be mid Jan so the announcement could well be a week or two away. Is there a statutory period mandatory between notice of the record date and the actual record date?

[speedsgh] 09/12/2016 13:45

Woodhawk - Have we got an actual payment date yet? As far as I was aware we had only been informed that it would be "in February 2017 in respect of the 2016 financial year" -

If so, plenty of time yet as payment might not be until end Feb?

[woodhawk] 09/12/2016 13:24

Looks like there's a pretty strong floor being put under this share in the 620-630p region.

I'm surprised that we've not yet had an announcement of the record date for the soon forthcoming special divi. As we are only a little over month from the actual payment date, I assume it will be very short notice. This may serve to clarify things, and I think this might be the catalyst for a substantial move higher? Announcement next week?

[slipperysidewinder] 09/12/2016 12:03

Logan

Like talking to a brick wall here. Holders think they are totally immune to sentiment and believe they are the owners of a crystal ball.

The point of consumption tax will also hit the bottom line harder thsn expected.

[loganair] 09/12/2016 11:32

Gary - Even though GVC do not have any bricks and mortar betting shops this will most probably show gambling in a bad light and therefore negatively effect the GVC share price.

Ladbrokes/Coral and William Hills share price goes down and therefore so will GVC´s, especially when in the past there have been romours of tie ups between GVC and bricks and mortar betting shops such as Willaim Hills.

[garycook] 09/12/2016 11:25

What as this got to do with GVC ?

[whiskeyinthejar] 09/12/2016 11:20

I don't see how reducing the number of machines per shop helps.

People just get a stool and sit at one machine from what I've seen.