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The share price weakness is not irrational. Regulation and Flutter are killing it in the UK & Ireland (with BetMGM sniping away too) and Flutter and Draft Kings are killing it in the USA.
Going the way of 888, Entain may be big but not the biggest in the gambling jungle.
AceOfClubs
I have bought a fair few of these today, looks good value at current SP.
I've been averaging in all afternoon. Decent valuation considering potential for growth and the dividend is ok.
Bought 20k at 739 so sitting at a loss at the moment but fingers crossed it will soon turn & hit 800 plus GLA
These are still looking very expensive on a forecast PE of over 20
Would not be surprised to see them fall to £5 or less
Expecting this to shoot up to 750 today and likely 800 before the end of the week.
Fair chance of a takeover based on current sp
Personally I think they have to drop to under £6 before there a chance of a takeover the predators will wait they in no hurry
This is in absolute freefall. It's a bad sign the dip is happening when the rest of the market is trending upwards
Which market did you mean?
From my limited experience, this fall most happens after the short opened/increased and coupled with some element of uncertainty such as announcement of UK election.
However, for specific case of Entain, I feel something positive big is coming up and thus I have dived in just a shy of £180k average 750ish now. No pain no gain, no brain no pain 🤪 Marshall Wace LLP is licking their wounds from stupidly increasing short against HL. So I hope Entain is another mistake of theirs this year.
The question is not whether Entain business is profitable because it is; its margin is tasty 🤤 already. But rather will having to share 50% of BetMGM profit annoy MGM’s strategic alignment enough to make the call and force other pe to reveal their hands? Entain won’t let their 50% go easily. MGM should have used SaaS companies for BetMGM on day one instead gone into 50/50 split partnership.
Is Friday a good time for takeover/merger announcement?
"The question is not whether Entain business is profitable because it is; its margin is tasty 🤤 already."
2023: Net Loss £835.8M, Free Cash Flow Collapsed, Net Debt Increased. Share price has halved in 12 months.
Leaderless, rudderless and clueless management - a sitting duck for a really cheap shot.
AceOfClubs
Sp remaining above 700 so far. Just takes a slow day in the markets to drag it into the 690s.
We hit 691p a while ago. No wonder when flutter is down 5 per cent today with the new gambling laws in the US
I mean they want to eat the golden goose before its even begun laying, given the level of deficits in the US, you do wonder if other states will follow suit, and if they do, the US opportunity suddenly looks overpriced, so yeah, concerning move tbh and has made me reassess the sector quite hard now
What are the new US gambling laws?
Potentially higher taxes in some U.S states. Will have a big impact on expansion for the likes of flutter, won't affect entain as much.
These are still looking very expensive on a forecast PE of over 20
Would not be surprised to see them fall to £4 or less
You aren’t wrong.I didn’t mean the P&L but the margin of Entain and bookmakers in general on bettings.
So all the noises turned out to be Jennings takeover of small independent Mark Jarvis it’s been now revealed.Dang😅🤣 I nearly almost went all in Entain and now sitting at 22k ish loss 😅. Heyho
It’s certain now that Entain went 100% in-house software instead of using SaaS companies such as Playtech likely, Kambi etc. They’re indeed betting big on their strategy and too, I will sit tight.