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Here we go - Cavendish value the current us side of the business at £48m! 50% higher than the current market cap, plus we get any left over cash and the “significant distributions stated by management after the result of this sale” plus continued upside driven from broader US sector growth over the next 5-10 years…
“ North America Sports
Estimated by Cavendish to be worth an estimated £48m, the company established a North America Sports market presence three years ago and since then they have focused mainly towards this market, as opposed to a Europe Gaming-led concern. Around 65% of the company’s revenue came from North America Sports in 2022.”
I'm expecting a director buy RNS anytime soon. Looking at the large trades gives a clue that they want the share price to be above a certain range before fully selling the whole business.
They are expecting a range of 30-35p to offload the entire business. DYOR
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
21-Mar-24 14:06:54 12.425 1,750,000 Unknown* 12.50 13.50 217.44k O
21-Mar-24 14:06:39 12.35 1,500,000 Unknown* 12.50 13.50 185.25k O
21-Mar-24 14:07:32 12.425 1,750,000 Unknown* 12.50 13.50 217.44k O
21-Mar-24 12:40:17 12.16 1,350,000 Unknown* 12.50 13.50 164.16k O
Surprised it didn’t edge up higher than this today. They have sold a part of the business for basically what the market cap has moved up to today. There is therefore no allowance in there at all for the remaining business which is arguably the better bit. Even then there could be an approach for that and another big premium. Even after today’s rise I don’t see much downside here in the short term though it may be a bit choppy! Suspect we’ll see 20p before long. If the various managements of this business hadn’t been so bad at capital allocation this would have shot a lot higher today.
Interesting article here
https://freebet.com/share-price-of-xlmedia-soars-following-disposal
24p last month? I believe the last time it was 24p was in February 2023. I'm happy to be proved wrong.
The cash and prospects should see a steady re-evaluation towards the 50p mark now I reckon.
Looks a bit of a no-brainer providing the sale goes through. Just quickly disposed of a number shares in order to make a fairly sizeable purchase (for me). Can't see this below 20p for very long so pleased to have got it considering I tried and was unable to pick up anything an hour or so ago.
Unlike a lot of the pumped baseless rises that occur on a regular basis these days this one actually stacks up and then some!
Director buys from 17p - 51p for 1 million shares.
07-Dec-22 02-Dec-22 Buy Marcus Rich 16.95 GBX 88,458 88,458
06-Dec-22 02-Dec-22 Buy David King 17.00 GBX 100,000 100,000
27-Oct-21 26-Oct-21 Buy Julie Markey 42.00 GBX 14,284 63,064
27-Oct-21 26-Oct-21 Buy Julie Markey 41.00 GBX 48,780 63,064
23-Sep-21 23-Sep-21 Buy Stuart Simms 51.40 GBX 27,110 1,032,083
18-Mar-21 18-Mar-21 Placing Stuart Simms 40.00 GBX 125,000 1,004,973
Absolutely goes higher here into close…
24p last month before this deal makes it an easy investment decision here.
The money we get is worth more than the company plus we still have the company and some fantastic prospects. 30p all day long.
It was 24p only a month back in February...I see this going back to that level at least!!
Those numbers approx. make sense to me for total biz ($63m US and $34m Europe, CA, etc). But that doesn't account for market growth in US. It's bonkers relative to UK/Eur. US growing 20% CAGR recently plus 10% next 5 years, UK /EUR flat to 2%
$42.5m is around the market cap at 12p. There is the larger and faster growing other part of the business which will be left post disposal.
Not too long ago the share price was 50p, inside the last two years it was 30p.
Taking off the 1/3rd of the company that is being sold for 12p a share, the remainder should be valued somewhere around 24p.
It is also possible that this is the first of two separate sales, the US part of the company could also be sold probably at a higher multiple, realising the 24p or more for shareholders.
Basically this still has a lot of up to go from 12p based on this deal. The price pre deal was nonsensical and shows the failure of the London market rather than anything to do with the company.
This will finish closer to 20p today...watch it move this afternoon into close!!
You only ever turn up when a share has risen. Never a peep out of you beforehand earl just because you think it makes you look like you know what you are talking about. Derrrrrrrrrrrrrrr
Don't get distracted by Davy50 posts, old man lives in the 80s
rns was good and Sp done well what's the fuss about???
GLA
Another RNs tomorro morning with good vibes
So we can say it must be worth around £75-80 million when comparing to current sale.
To XLM, 60-65% of their business and increasing...
@davey50 is a clueless old fool. He never invests in anything apart from his mate Ria20's pump and dump stocks.
?
Not Mexico sorry Brazil
@davey if you had any clue about this business and long term holders you wouldn’t sprout this rubbish. Obviously you’re annoyed you weren’t in enough or sold out at the bottom. At the end of the day, I’ve been saying and many others here that Xlm has been truly undervalued. Yes its price action has been poor as it probably needed a little more cash, it was going through a transformatice turnaround which takes time to focus on US and big restructure. Anyone saying the sale of the European business was not right for shareholders is a debate. I think it was spot on. Knowing the industry very well? Europe is mature, highly competitive and in soon regions declining. US is where the play is over the next 5-10 years alongside Mexico and Africa so this RNS imo is transformative and will be to price action over the medium term.
Most traders enter and exit with profits, and if you stay too long, you'll be left holding the baby.