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It is surprising how low the volume is at the moment on this stock in this waiting period. You would have thought there would be more interest given the high volumes when the divestment was announced
Should have added
From the last RNS:
'The Board ... intends to use the Net Cash Proceeds to pay the ... acquisition payment of $4.0 million... ,provide working capital for the North America business and settle outstanding tax provisions while returning cash to shareholders.
.... XLMedia's Board will continue to execute this strategy whilst also evaluating ways to maximise shareholder value.'
So the first para suggests somewhere i.r.o. $20-25m should be returned to shareholders, whilst the last sentence hints that they may be sitting on inbound interest for the US business also.
Seems all the short term spike drama is over, except obviously it isn't. There will be follow on news sooner or later, it is just a waiting game now.
Any bets on when the next major announcement will be? And what?
1. Sale of North American business
2. Cash distribution plans
3. Acquisition made in N America using funds raised
4. Results
5. Office Xmas party date...
Its always possible that the special dividend could be at or around the current share price given the cash raised. That could be quite entertaining.
Agree, not really interested in a special dividend as the share price would just drop by the corresponding amount anyway. Share buy-backs at this lowly price would make sense, or if they can put the cash to good use for growth then that would be the priority. What we don't want is the money frittered away on poor capital allocation decisions which has been a theme here.
I'd personally prefer a share buy back than special dividend..
For that sort of money and current sp, they could buy 20% of the current free float back...
A very fair assumption, and the second option is my guess.
I feel fair value would be around 40p which would be a great buy if you had the money!!
So here we are, sitting at the value the company has sold just the European business for.
There are only two possible outcomes here:
1. The European business sale goes through and the company continues to trade and focus on growth in the US, the market value for that business should be more than the current mkt cap given the removal of any perceived liabilities.
2. The European sale goes through, and the company follows up with a sale of the US business maximising short term value for shareholders and ceasing to exist. The US company would sell for a multiple of the European Business given the growth and revenue, and also the fact a US buyer would pay a higher multiple.
Either way, a moderate level of patience here should be well rewarded for holders.
Over the past week, I’ve noticed a syndicate of these traders. Same, repeated nonsense or even abuse. Word for word posts going way back and across multiple stocks. Almost as if they have these as a default and available at the touch of a button.
I wonder how they do this or how LSE allows it? Weird. If I were a cynic, I’d say…. well, let’s leave it there. 😉
Don't talk nonsense either. Spike pulled in traders who may wander off. The amount of cash being raised still matches the mkt cap of the whole company for only 1/3 of revenue, and less than 10% of growth.
Don't get distracted by gloomy traders, value here is still be be realised.
Hope people don’t get spiked, well done who made profits, profits are only profits till banked
I should add that only really think risky stocks are worth betting on so I analyse lightly. More interested in volatility
I “invest” in positive cash flow blue chips, property and inv trusts.
This sort of thing just a gambling hobby for me so anybody reading should not take my opinion seriously…
Pompal I tend to take a much simpler view that even if they literally set fire to all the cash and threw Petrol on it the part of the business that does 2 thirds of the revenue must be worth more to them than 30 mill mcap.
That’s if they set fire to the cash!
I like to keep it simple, over analysis is paralysis.
Pompal, no worries at all. Sometimes it's best to avoid arguing with random people on chat boards. Life's too short to waste on negative energy. Let's focus on making money and keeping our conversations respectful.
Flava, you don’t know me but I’m not the type to take that rubbish from an internet big boy troll. Especially when people are ticking up his immature nonsense. I will stand my ground.
Point taken though and apologies for any offence.
Pompal, why would you engage with anyone on this board if they're behaving in that manner? You keep replying to the same insults, and it's going nowhere. ATB
Flava, please show me where I started abusing anyone with pathetic, childish insults?
Hi Jackbal
Just for clarity, I bought at 11.90 this morning and will add more if this hits 10.
How much of the cash do you think will remain, after covering asset transition costs, paying the final deferred US acquisition payment and settling outstanding tax provisions and providing working capital to support the North America business? I think they’ll probably be a 2p divi returned to investors, within that, which is not to be sniffed at.
OMG, you both need to be reported now. Hopefully, you'll get banned from LSE forever.
An obvious buy for me on the pullback as it takes a breather.
Mcap almost fully supported by cash position after selling the part of biz that did about a third of its revenue.
If that’s worth 37.5-42.5 million then what’s the bigger part worth.
Market giving it 30 million mcap??? Nah I’m a buyer at 12.25 and any 1p and increments lower. Cash catalysts are usually worth it
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.
Scumbag pretending to be nice here and talking as if you're bigger than everyone.
Just come out alone without hiding behind the keyboard. 🤡
As I thought. A ridiculous, uneducated, immature reply. Along with the few that are ticking up your rubbish. You lot are worse than derampers. You turn up on the back of a rise, know f all, chat sh#t and then leave with your 10%, while the not so savvy investors are left holding the bag. No shame. 🤮
You KFC, why do I need to give you an investment case when you're not invested in the first place! Grow a pair, old man.
If you need attention, then go and play with your sheep. 🤡
Wtaf are you talking about? You got anything else other than mindless ramping and now mindless insults? How old are you?
Come on then, give us all your investment case here and why you believe this should be valued at £110m. This should be fun.