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I believe the current management is shockingly incompetent.
To distract from the truth, it takes every opportunity to lay the blame on the previous management for the company's current predicament.
The truth is they have been comprehensively incompetent in managing the company since 2017.
The HMRC investigation does not impede their ability to manage the company, as the case relates to the company affairs prior to 2017.
As an example, they announced on 10th Aug. a provision of £585m, leading investors to believe that is the total hit to be expected.
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10 August 2023
Update on HMRC Investigation
The Company previously announced an investigation by HMRC into its legacy Turkish facing business, which it sold in 2017, and subsequently announced that it is in DPA negotiations with the CPS to resolve the ongoing HMRC investigation.
The DPA negotiations have now progressed to the point where the Company believes that it is likely to be able to agree a resolution of the HMRC investigation insofar as it relates to the Company and the Group. While the full terms of a DPA are subject to judicial approval, the Company has a sufficient degree of confidence to take a provision of £585 million against a potential settlement, which would be paid over a four-year period in relation to alleged offences under Section 7 of the Bribery Act 2010. The Company currently anticipates judicial approval will be sought during Q4 2023.
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But low and behold, today they announce that the on top of that there is another £30m sum to pay or 5.1% more than previously indicated.
What an incompetent bunch.
Whether this will drop to £5 or not, no one knows, but it has definitely become a trading shares for the day traders. For that reason, I have dumped my holding for a tiny loss yesterday at 882, when it had spiked more than 6%. Then I have bought VLX this morning when it has dropped more than 6% at 279, after the H1 results were announced. It closed at 314! Must be the luckiest decision I have ever made. Usually, once I have bought a share, the SP drops like a stone. Whenever I have sold a share, it rockets, never this lucky, lol.
If only this would drop to £5 I would be happy to pick up a shed full.
You already posted this rubbish two days ago, what happened, did the 5% rise spoil your day.
Entain is still very expensive in comparison to other gambling companies
A forward PE valuation of 18x compares unfavourably to the 7x PE valuation for 888 the owner of William Hill and the 10x PE valuation for Playtech
So Entain look quite overvalued when compared to 888 or Playtech
Would not be surprised to see Entain falling to about £5
https://www.investorschronicle.co.uk/news/2023/08/10/entain-hit-by-bribery-impairment-provision/
Bit of a lame reason for a rise but I expect knowing two US activist hedge funds are watching the sp and criticising the drop has put the wind up short sellers.
I’m not so sure. Could be the start of a long, slow recovery. I put my profits in 888 in anticipation of something similar happening over there.
The "good news" is rather weak...I have no doubt it will go back to 820 again
Tidy profit banked on the 820p shares I bought earlier. Let the good times roll..
Well done wild tiger. wished id done the same
Just cashed out....will buy back in lower.
Spike, what happened
I think the HMRC fine is more or less already priced in. Unless we get more bad news I can't see this going much further down from here
Rumour that Entain bidding for 888 @ 75p and Playtech @ £4.15, that is why Entain sp plummeting.
Just revisiting this share since I bought for 13.50 and sold for 14.00 within a few weeks, eight months ago. Lokks like I had a lucky escape. Price now looks tempting but I am wary about the £585 HMRC provision. What a ridiculously high figure for a bribery scandal on a firm they once owned. I suppose the fact it is now out in the open and will probably be paid over four years, helps ease the pain. Given the recent American purchase, I am monitoring this very carefully. I think the downside must be limited given this development.
The problem with Entain is that the shares are still very expensive in comparison to other gambling companies
A forward PE valuation of 18x compares unfavourably to the 7x PE valuation for 888 the owner of William Hill and the 10x PE valuation for Playtech
So Entain look quite overvalued when compared to 888 or Playtech
Would not be surprised to see Entain falling to less than £6
https://www.investorschronicle.co.uk/news/2023/08/10/entain-hit-by-bribery-impairment-provision/
Sold this at 1300 back in July, just bought back in today at 836. I believe it's way over sold now, fair value should be over 1000 at least.
Jeffries reduced to £9.15 6 days after quoting £13.25.
Says it all.
Yes , I agree I could guess, just as well as they do.
Unfortunately the market makers use it to their own end, and manipulate thevsp.
Broker's target prices:
Deutsche: 1625
Citigroup: 1600
Berenberg: 1510
Jefferies: 1325
Shore Capital: ---
I couldn't find the 915. All said buy, but they are target prices only. The reality is: ENT's current SP is only 859!
So do you believe those so-called experts? I don't. All just personal opinions, your guess and my own guess probably would be better than anyone of them, lol.
With Berenburgs latest analysis we now have updated broker figures between £9.15 to £ 16.50. Berenburgs £15.10.
Certainly huge variation.
Following usual pattern of up followed by down
Anybody buying in £8.30 s probably worth risking trading.
Anybody in a loss probably too risky.
Probably trade like this for a while but breakout could happen anytime.
I added at 838p and again at 835p, then sold most of these at 850p. Should recover but for now it’s a great share to trade and low risk to buy below 900p imo. Guessing it’ll be back to around 880p or above today
Added at 834.4. Will it recover from here or continue to fall tomorrow? No one knows. Good luck to all, to me and goodnight.
Willy....brokers and experts ? Don't make me laugh! I found an 15 month old newspaper the other day when having a clear out. Ooh, I thought, I'll turn to financial section to see what they said about what to buy, sell,hold,etc. Honestly, every single assessment of 12 companies futures and it's price was 100% wrong. Buys should have been sell, vice versa,etc. Even an old cynic like me couldn't believe how wrong these experts were. Close your eyes and stick a pin in for better outcome. Anyway, have fun before it's too late, LOL