The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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No sign of the pre-results progress update yet, anywhere, so likely later this morning during the analysts presentation.
Thought they might have released that part, pre 8:00am as a separate RNS.
One way of dealing with this shorting issue will be to cancel the divi and pay off debt instead. I know this will be extremely unpopular with many share holders but the share price would rise and reflect the action, plus it would be a kick in the teeth to the Hedge funds. May make them think twice about shorting in future if a company suddenly did this.
Checked the internet, but he (Citadel) isn't divulging just what he's seen that's led him to short GVC.
I suspect either he feels closer to US sentiment as to allowing a foreign company direct access to US markets with potentially hostile regulations and a White House that is itching to punish any foreign company that is seen to be from a country that is pro Huawei.
If he has anything bearish that is on the balance sheet now, then he's not confident enough to spill the beans, contrast that to those hedge funds that do release their findings publicly and widely to all and sundry (aka Burford Capital saga; day receivables). Or he's not saying, because he has illegal access to insider trading.
Both Citadel Advisors and Citadel Europe (I'm assuming different branches of the same outfit) have a combined 1.83% of GVC loaned holdings in play. The media bit available said he's punting £80m on shorting GVC.
But 1.83% of the free floating shares of 580.4m comes to 10,621,320 shares - and at Friday's close that's £91.6m
He's listed as last adjusting his short on the 7th Feb. So he's either quoting at Friday's close £11m higher or back before the 7th in which case he should still be in profit. But the number of shares involved come to way more than £80m.
The amount is even higher if he sold into the market around the 7th at roughly 890p-ish. (Or was that him on the 13th when the SP dived from just under 930p to close the day at 865-ish?) Again way more than £80m.
Obviously some of his older transactions were done way back, so not all done on the day. Whatever, if this doesn't come off, the loaned shares still have to be obtained from the market and handed back to the original owners. Presupposing the annual results impress the market, and the SP rises, will he call it quits, and be forced to buy back into the market thus driving the price even higher just to return stock to it's owners?
I think from the figures above he's in way deeper than his announcement of £80m. So any increase in the SP as a result of the imminent trading updates etc., will have him squealing.
The Times certainly have it in for GVC, shorting of 3.6% of shares isn’t particularly news fit for a headline! Hedges are obviously banking of even further regulation, but from what I’m hearing punters are placing just as much money.
Seeing the results on sports betting over the past year I can see nothing other than outstanding results coming. Then add in to this all the cost savings being made from combining various departments, I personally would not want to be shorting this myself, but we shall see.
Bob, could you paraphrase/list, any of the things that they're highlighting and using to short GVC, as The Times is behind a paywall.
But first, before those annual results are released a week this Thursday, is a heads-up trading progress tomorrow, alongside a stragedy presentation to analysts.
Not expecting anything untoward, on the contrary; but my personal concerns are net debt which I believe may end up rocketing over £2b with liquidity looking a little stretched.
With all the expansion plans for the US, perhaps increased debt is just a by-product of that ambition?
But remember anti trust laws. And also how few US stares allow casinos apart from native American ones
There is a strong conservative view and on line gambling still very limited. Look at how long it is taking to get federal approval for cannabis. The companies are forbidden from banking their takings. So I am far from convinced that thee yanks will allow it. they are far more puritanical than us. Look at prohibition. . Another problem is the way gaming profits have been in macau and hong kong. anyway it will be interesting. Have a look at bet at home as a target. It's German despite the name. Not many posts other than mine
Bruce
Any of the big Las Vegas Cos. must be working out how much money is to be made across the world in gambling
Being yank companies will face no monopoly problems as per usual
Capitalisation of mgm is roughly 3 times GVC so quite a chunk when US gaming not as strong as all that. Thought I read somewhere gvc going to have a tie up with Wynn resorts
Nothing too stop MGM devouring us or any other big dollar organisation
This company is too profitable not to get sized up by suitors
Betonline or Bovada Bet 365 and pinnacle and any number of US hedge funds to asset strip
Arsenal58 -
Hi, who have you got i mind to make an approach?
Bruce reckons Wm Hill, 888 and bet-at-home are potential targets?.
A special dividend would be nice - £2M a day profit - got to be spare.
Kenny has got his baby Honeysuckle entered in the Champion Hurdle at Cheltenham , surely in with a chance?
Bruce
Predator in the European markets
But small fry in the US and Asia cheap while the dollar is 1.30
GVC is a predator not a target.
I have seen ??
Since the large drop in Avast share price GVC are in poll position for entry to the FTSE 100 in the march review
BOOM
I am in today could be a special divi and the final in my opinion buy on the rumour as they say lol could GVC be taken out ????
I think there will be more consolidation and gvc is usually on the hunt. 3 companies they might go for are Wm Hill, 888 and bet-at-home
On GVC website but not showing on this LSE. All looking good IMO.
You are wrongl The explanatory letter states the domicile remains Isle of Man. Admin centre is changing. Why not read it for yourself instead of making conjecture.
Indications are that GVC will relocate its domicile from an office in Douglas Isle of Man where a number of e gaming companies are currently operating, (nice tax “efficiency” for want of a better word) to the UK. Subject to an EGM. Having seen a number of trusts move from offshore to the UK under the premise of better double tax treaty arrangements worldwide, I wonder if this is the reason?
This doesn’t set a good president for the offshore jurisdictions holding onto the gaming industry as a source of income and employment, if the DT Treaty reason is the case, as a domino effect may take place depending on the countries these e gamers operate in and the company structure.
EGM will hopefully reveal all.
200 grands worth of extra stock purchased by the new chair! What a glowing endorsement and another buying opportunity. Time to increase my holding I think. :-)
I see the new chairman just bought an additional 25k share. Good timing