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As is the case with any share repurchase scheme, GAN is under no obligation to buy back the full $5 million worth of stock. The company can also scrap the program at anytime.
Should the company buy back $5 million worth of its shares, that would represent 1.1 percent of its $427.51 million market capitalization. Based on the Nov. 30 closing price of $9.67, a $5 million buyback at that price would remove more than 517,000 of GAN’s 42.06 million shares outstanding from the market.
“We also recognize the value opportunity that has developed in our stock and want to be prepared to act opportunistically during periods when the share price becomes significantly dissociated from our future earnings potential,” said CEO Dermot Smurfit in the statement.
While GAN stock is getting drubbed alongside a variety of gaming peers this year, some analysts remain bullish on the name, with at least one noting it could be a takeover target.
GAN embarks on $5m share repurchase plan
By Gambling Insider
GAN Limited has announced that it will buy back up to $5m of ordinary shares after receiving authorisation from its Board of Directors.
The program will begin immediately and last until 31 May 2022, during which time the company will pay the prevailing market price at the time of acquisition for any shares.
GAN stressed that the authorisation does not oblige it to acquire any particular number of shares, and stated that the actual timing and manner of the buyback will be determined by management at its discretion and is subject to further discussions with the Board.
Several external factors will also play a role, including the market price of GAN’s common shares, general economic conditions, alternative investment opportunities and other business considerations in accordance with applicable securities laws and exchange rules.
The Nasdaq-listed company will use cash on hand and from its operations to fund the repurchase program.
“We continue to believe that the best use of our capital to drive long-term shareholder value is centred around our strategic growth initiatives such as investing in our technology, supporting client launches and building out our Super RGS content portfolio and omnichannel GAN Sports platform,” said GAN Chief Exec Dermot Smurfit.
“However, we also recognise the value opportunity that has developed in our stock and want to be prepared to act opportunistically during periods when the share price becomes significantly dissociated from our future earnings potential. Today’s announcement provides us with an effective tool to do exactly that, support our stockholders and drive long-term balanced returns.
You were right about the drop tricky, it really did dive down this time, sub $10 could be a good level for buying in.
The issue for me is that they keep missing parts of their guidance…..the share price reaction is almost like clockwork every single time. The Street clearly needs more convincing about their ability to hit all their guidance. Great product, but the competition is not going away either and take overs and mergers are starting to create some interesting dynamics.
I may well add /trade again as I usually do after the updates, but I am going to hold off for a little while this time as I am not sure the drop is done yet. All IMO. Hope everyone is ok.
"The last few weeks have been eventful as our management team debuted GAN Sports (our sports betting kiosk), our Super RGS platform and other new products at the Global Gaming Expo ("G2E") in Las Vegas. Our growing portfolio of products and content that roll up into our B2B product suite will further expand our position as a premier, holistic provider of technology solutions, popular games and original, exclusive content. We also provided a deep dive into our B2B and B2C strategies, the complexity and value of our technology, and showcased the depth and experience of our broader leadership team at our inaugural Investor Event in October. We believe these initiatives will ultimately yield over $500 million of revenue by 2026 and a long-term Adjusted EBITDA margin of 30-35% at scale. We continue to make exciting progress in each of our business segments and initiatives and are well-positioned going forward."
Price looks like it is starting to rise again, looks like positive news has landed now? GLA
Super quiet on this board nowadays. Took advantage of the usual trading update car crash to add at under 14 and sold at just under 18. Still leave my core holding but it got pretty predictable (well as predictable as these things ever get IMO), and it didn't disappoint.
Hope everyone is keeping well.....see you at the next update.
What will happen next, and how this might affect GAN.
Hey I saw the write up you are talked about. Also I heared about regulations related to limits of payouts and deposits in online casinos. I just found an guide based on that regulations -
https://www.thesportsbank.net/business/how-to-choose-minimum-au-online-casino-deposit-size/. But still can't find real document with that regulations.
B.Riley say Buy with a $26 price target:
"GAN Limited rallies after Michigan deal, positive B. Riley update
May 24, 2021 8:41 AM ETGAN Limited (GAN)By: Clark Schultz, SA News Editor5 Comments
GAN Limited (NASDAQ:GAN) trades higher after adding a fourth casino client in Michigan via a new deal with the Saginaw Chippewa Indian Tribe of Michigan. The company expects to nab a "fair share" of the Michigan market through the Soaring Eagle Casino & Resort deal.
GAN also received some positive attention today from B. Riley, which transferred coverage to analyst David Bain.
Bain notes that GAN is leveraged to iGaming and online sports wagering total addressable market increases. He also values the recent Ainsworth deal at $2 to $6 per share.
B. Riley has a Buy rating on GAN and price target of $26."
Unfortunately the results day street reaction is becoming a regular headache. I am concerned that belief is starting to ebb away. Cannot afford to miss any part of guidance.
"Gan Limited raises FY21 revenue view to $103M-$108M from $100M-$105M 16:02 GAN Consensus $102.24M. Karen Flores, CFO added:"Our first quarter financial results exceeded our expectations, and the outlook remains positive for the balance of 2021. We are increasing our full year revenue guidance to a range of $103 million to $108 million. As we gain scale, become more efficient, and move through a period of significant investment for growth, we anticipate to drive improved profitability. These factors will yield better operating leverage across the business over the long-term and further bolster our strong financial position as we execute our growth strategy, support new and existing customer launches and launch the B2C sports book technology later this year."
"Gan Limited to obtain exclusive online rights to future Ainsworth online games 16:05 GAN Gan Limited announced it has reached an agreement with Ainsworth Game Technology Limited to obtain the exclusive online rights to all current and future Ainsworth online games, today comprising over seventy unique games, for an undisclosed amount.
Jeff Berman, Chief Commercial Officer of GAN, said, "Today's announcement recognizes the benefit of marrying our distribution to Ainsworth's content and is an important step toward disrupting existing distribution channels in the U.S. online gaming space. This agreement ensures that GAN possesses differentiated and exclusive access to what we believe will be an ever-growing focus on recognized retail gaming content naturally sought-after by Americans engaged in playing online casino games. Our goal is to continue to build a leading portfolio of U.S. casino games to benefit our diverse clients and establish ourselves as exclusive providers of premier U.S. content.
We are excited to extend our long-standing relationship with Ainsworth, as they have built a global reputation for developing award-winning games for both the online and land-based channels."
I wonder where he's off to, and how this might affect GAN.
The language in the New York bill suggests two providers will be used:
"New York Includes Mobile Sports Betting Framework In Budget Agreement Clearing Path For Legalizing Online Sports Wagering
Cuomo and legislative leaders agree on pact that effectively legalizes mobile sports wagering in Empire State"
Bit of a results day horror show. Costs spike not impressive.
Interesting Rivaldo. It’s been a wild ride this week on the Nasdaq. What’s interesting is that although this is in theory a tech play, there is a clear link to a recovery too, perhaps in a different way to some other tech. No doubt some of the $19trn will also find it’s way into on-line gaming. I think people do all sorts of things with the stimulus money. Anyway, let’s see how this week plays out. All IMO as always, but intending to keep holding.
Interesting commentary from Berenberg on prospects for gambling in the USA following Flutter's results this week....
"The German bank was particularly attracted by Flutter's commentary on the US. Sports betting is being legalised in many states for the first time following a Supreme Court ruling in 2018, allowing UK bookmakers - experienced in sports betting - to tap into the lucrative market.
....It upped its total US addressable market forecast to USD20 billion, "a material upgrade to our previous estimate".
This was due to a rise in the number of states expected to regulate sports betting.
"We now expect online sports betting to be available to 65% of the US adult population by 2025 while gaming is expected to be accessible to 16% (previously 50% and 11% respectively)," the company said."
Hi tricky752, GAN is extremely volatile day to day! Looks like you did well buying back given the big rise today to almost $29....
Any idea what caused the dip this morning Rivaldo? May be mad...but added a few back on the dip from the ones I sold.
Thanks for posting the numbers. Those numbers reinforce why more and more States will change their laws. Much needed tax revenue.
Was trying to work out whether the strength of Stirling will work against us, but I guess only if selling and bringing the money back - or perhaps in the valuation of the holding when looking at it in £. In that case I guess it’s a better time to buy but then it’s about the movement after the buy! All IMO and still trying to be sure I have this right!
More re that B.Riley target price upgrade to $35:
"Gan Limited price target raised to $35 from $27 at B. Riley Securities
08:11 GAN B. Riley Securities analyst Josh Nichols raised the firm's price target on Gan Limited to $35 from $27 and reiterates a Buy rating on the shares. The initial Michigan launch numbers are out, and residents flocked to online betting establishments with $13.3M of online sports betting receipts and $29.4M of internet gaming revenue during just the first ten days of operation, Nichols tells investors in a research note. This bodes well for online-centric companies like Gan with its significant iGaming exposure through three business-to-consumer operators in Michigan, says the analyst. He believes Gan will be able to secure additional casino operator engagements as sports betting and iGaming legislation "proliferates across a growing number of states."
B. Riley have now raised their price target to $35 (from $27):
This is surely very good news for Coolbet and thus GAN:
"In a highly anticipated move, Canada’s parliament on Wednesday approved wagering on individual sporting events, paving the way for eventual introduction in provinces and territories."
Agree, these are staggering numbers. Potential remains excellent. The move to the NASDAQ has helped transform the company., which for me is a sign of a clear strategy, well executed by the leadership team - a big influencer for my core holdings. Who would have thought not long ago when we were looking at £1.50 a share we would be looking at £23 a share (accepting a 4 for one).
I do wonder whether they will make it as they are until 2023, or whether they start to become a T/O target in such a growth sector. Either way, no plans to sell any more now.....but I will always try and balance tomorrow’s portfolio with enjoying life while I can. All IMO and good luck to all those invested. Continued thanks for keeping us updated Rivaldo.