Paypoint Share Discussion Threads

[brucie5] 03/11/2010 10:24

Quiet board. I've watched this share for ages on the way down. It used to be a major holding of the RIT trust, in happier days. Is this a recovery at long last? I've bought in this morning, on that basis. I'd be interested to know your views.

[salpara111] 04/8/2010 08:45

Got a hell of a bump on the initial result but clearly the canadian pension fund did not pay what they paid for the lottery without having a plan to be able to increase the profitability of the business.

I guess the share price will just drip back until such time as we have a final ruling which I belive will be a few months yet.

Tempted to short here just from a technical perspective, nothing against the company itself.

[masurenguy] 03/8/2010 14:55

Camelot not ready to throw in the towel in commercial services licence application.

Camelot tries to win over regulator with new assurances
Tuesday, 3 August 2010

Camelot, the National Lottery operator, has proposed a series of remedies to persuade the regulator to let it provide new commercial services through its network of terminals in retail outlets.

Having reviewed these assurances, the National Lottery Commission (NLC) has agreed to extend its consultation period from 3 September to 17 September. Last month, the regulator provisionally rejected Camelot's proposals for additional services, such as mobile phone top-ups and bill payments, on the grounds they would breach European Union and competition laws. But Camelot, which has a 10-year licence to run the lottery until 2019, yesterday provided assurances on transparency and other commitments to prevent any distorting of competition. A Camelot spokeswoman said: "We are pleased that the NLC has consulted on our remedies and we remain confident that the NLC's approval of our proposals would not breach either European Union or competition law."

Despite this view, Camelot said it would be "happy" to separate accounts for the new business and make its costs and revenues transparent to the authorities. Camelot, which has a network of over 28,500 retailers, also said it would comply with any instructions provided by the NLC, such as installing a competition law compliance officer. The lottery operator also cited the revenues the additonal services would generate for good causes. But the NLC last month said the annual amount of more than £5m for good causes was "relatively small", compared with the £1.6bn delivered by the National Lottery.

PayPoint, the payment provider, said: "Camelot's so-called 'remedies' would be hugely expensive for the NLC to administer and ultimately unworkable. They would do nothing to prevent Camelot exploiting its National Lottery monopoly, distorting competition in bill payments and mobile top-ups, and damaging the interests of consumers, retailers and other businesses."

[bori5] 17/7/2010 11:01

O/T check out IRG. DYOR & GL

[liam1om] 16/7/2010 11:08

I think I will wait to see the outcome of the appeal before I get in here again.

[wjccghcc] 16/7/2010 10:18

Well judged David. Back in today at 320p which is a bit lower than where I exited on the way down.

[salpara111] 16/7/2010 08:03

Positive news for PAY....but leaving the door open for Camelot to come back.
Timeline now appears to be closer to the end of the year given that they are taking submissions up till 3rd september and will doubtless need another 3-4 months before making their final decision.

[masurenguy] 16/7/2010 07:33

Lottery Commission provisional refusal to grant Camelots license application to undertake ancillary activities.

It should be noted that, aside from the EU/competition law issues, other issues would need to be resolved prior to any consent to the Ancillary Activities being granted. However, in circumstances where the Commission is minded to refuse consent on the basis of EU/competition law issues, the Commission's process in considering these other issues has not yet been completed.

Not an outright rejection at this stage but it is certainly looking good for Paypoint at the moment.

[pote] 16/7/2010 07:29

PayPoint welcomes the provisional decision to reject Camelot's
proposal to offer Ancillary Activities


PayPoint plc ("PayPoint") welcomes the National Lottery Commission's
announcement this morning of its provisional decision to reject Camelot's plan
to offer ancillary activities, including mobile top ups, bill payments and other
services, through its terminals.

Dominic Taylor, Chief Executive of PayPoint, said: "This is a victory for local
shops, including sub- post offices, whose earnings and footfall would be
undermined by this proposal. Today's decision should protect vulnerable people
from the increased temptation to gamble.

"It would be entirely wrong if Camelot were to be allowed to exploit its
monopoly position, and we are pleased that the National Lottery Commission has
accepted the compelling arguments that the proposal would have distorted
competition in the bill payments sector."

[davidosh] 15/7/2010 15:13

Bizarrely as it is the Lottery Commission who have to watch over the running of the Lottery and its licence award I doubt Camelot would actually put them to too much trouble by appealing if they lose.
By doing so would suggest they do not know what they are doing or have been prejudiced....I doubt they would want to get the wrong side of the regulator whereas Paypoint have little to lose by appealing and supposedly delaying a final decision but just my thoughts.

[masurenguy] 15/7/2010 14:53

Quite possibly, especially if Camelots application is approved !

[mr.oz] 15/7/2010 14:46

If rejected or accepted, there'll be appeals processes and further uncertainties I reckon

[masurenguy] 15/7/2010 14:41

Being poised at 8.00am will not really help you since the price will be heavily marked up or down by the MMs before the market even opens. Once open there will be a rush of Buyers at a high price or Sellers at a low price so you would be better off waiting for the rush hour to clear and look again at around 9.30 - 10.00 at the price action.

[salpara111] 15/7/2010 14:35

D Day tomorrow!

As I cant afford to take another hit at present I will have to wait and see what the outcome is and then take it from there.
If PAY get a clean outcome in their favour then there is no reason why the stock cannot be re-rated back towards £4.
If it goes against them then who knows if the business is even viable going forward.
As I have mentioned before, I cannot see how a company that runs a monopoly would be allowed to use its monopoly position to gain unfair commercial advantage but what the hell do I know!
Whatever the outcome I dont doubt that one side will appeal the decision ( I am not clear what the regualtory rules are regarding appeals?)
Maybe there will be some sort of fudge result...
Who can tell! suffice to say I will be poised at 8 am tomorrow morning.

[davidosh] 15/7/2010 11:34

Interesting to see a director buying 5000 shares yesterday so certainly he is not letting the Camelot situation worry him unduly at this price.

[salpara111] 06/7/2010 11:47

I would imagine that regardless of whoever wins the other side will appeal.
Having said that I will keep an eye on the outcome as it will lead to either signifcant upside potential or downside...the problem is I dont have a crystal ball so I will have to wait.
By the way, anyone who buys on divi.....dont assume that a large covered divi will support a sp, I hold IRV which trades on a divi of circa 9% and is covered over 3X. I also bought FCAM at 60p as it was yielding 10% at that point, it has now dropped to low 50s and the yield topped out at over 12% recently.
I am still holding both as they appear to be pretty solid businesses just waiting for a re-rating....heres hoping!

[davidosh] 06/7/2010 10:52

Just posted here if any of you want to add any comments...

[davidosh] 06/7/2010 09:59

Anyone coming to the AGM tomorrow ?

[salpara111] 17/6/2010 17:18

I have to say that I cannot see how the competition commision would allow Camelot to enter the bill paying services sector as they would be effectively cross subsidising and utilising their monopoly power as a seller of lottery tickets.
Having said that I seem to get these things wrong all the time.
Make no mistake, if Camelot are allowed to enter the market then Paypoint is effectively out of business as Camelot have already covered the cost of their terminals in their business model which means they will always be able to undercut Paypoint.
If Paypoint do win this case then I will invest but not before!

[mr.oz] 15/6/2010 16:58

a few days old

divi soon

[smurfy2001] 15/6/2010 12:55

Cheeky order of 1500 placed @ 282.5 using DMA

[wjccghcc] 11/6/2010 08:26

The National Lottery Commission say the decision will be made by the end of July.

[masurenguy] 11/6/2010 08:14

Is there any news that Camelot have been awarded a license to compete with Paypoint ?