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Peel Hunt ‘Another Jackpot Year. Buy 60p’
Camcoord ‘Buy 50p’
It didn’t deserve this silly drop ffs there making money
Disappointed that the board has not embarked on the journey towards returning earnings to shareholders by way of dividend.
I topped up just now, and hold 175,000 of these so am well vested.
No surprises in the results, other than its frustrating to hear that we can't open up the revenue pipeline faster. So the 10% drop for me has to be the "Protest vote" of long standing holders placing store on these results and not liking the absence of a dividend or future promise of one.
But you have to ask yourself "Why"?.
Messrs Buckley and Bland hold approximately 37.5million shares between them, and sit in the two most influential chairs on the board. That's approximately 12.5% of the shares in issue. So, one has to argue that they are not swayed for making the case for dividends, and that their focus therefore has to be on capital growth. And, I get that - we'd all be pleased with this a 50% uplift to 50p say in the next 2 years. - but that is not a given, even though the growth trajectory for the financial KPIs is good.
Public opinion (or rather Government's intervention) on on-line gambling is always a risk for this business.
And unlike other shares that I invest in, I am not a user or "advocate" for this product, and so I have no idea how long it might be before Slingo becomes yesterday's technology / fashion. - that too is a worry.
So, I would have argued that the price of initiating the shift in this stock's profile to being one of Capital growth and Dividend, would have been both affordable, and in the interest of maintaining the widest base of shareholders. Instead, the price of a further year of dismissing the opportunity to start the dividend is that 10% was knocked off the capital value.
This share now trades at a 10% discount to the the Enterprise value of 10 x historic earnings, plus cash at bank.
Hmm!
Why don’t LSE let you edit posts - apologise for spell check and las5 sentence - but you get the sentiment
I may of mentioned areas of improvement and negated to point out the obvious virtues of this company.
They have a ‘lift and shift’ approach that is low on capital costs and high in margins. The increasing customer base and country scope with relatively fixed costs will enable GMR to churn out the profits. The only question was how to utilise them best and the vision for the future. If the official figures result in a 7% drop then I am at a loss to say why.
Camcorder turned out a very positive note today. The company simply needs to voice a clear future strategy based other than that there may be sellers remorse in a few days. Let’s hope so.
I wonder if general uncertainty around gambling industry regulations is holding back the share price. Otherwise, it’s a great looking growth share - growing revenues, low cost base, increasing cash pile and anticipated future growth.
To be honest I think investors were looking for more and GMR are not recognising a need to push the boundaries. The figures were as per earlier notification so that alone was not going to get the sp to jump.
What I wanted was a vision of the future. Is there an over reliance on Slingo? What else is in the pipeline?
Have they considered a US listing? Have they considered dividends? With a projected profit of £9.2m and cash balance of £15m next year there is nothing gained by leaving the money static - invest, innovate or distribute.
The down sides are the admin costs and wages and one look at their linked in page makes it look at good place to work and get an opportunity to travel but maybe not so palatable to investors.
Maybe a bit harsh but some truth in the above. They are growing both geographically and client wise but get the sense the market is awaiting something extra. Holding and awaiting analyst reports. All depends on the ambition of the directors
Yep opened the bottom drawer, closed back up again!
GOOD RNS AND MASSIVE SELLS ??
AH WELL ANOTHER YEAR THEN
Well done GMR A⭐.
Agree divi would attract passive investors and also agree, may be time to ditch AIM and join the prem markets.
And we go down lol 😂
Well, I want this company to re list on nadaq and get the growth rating it deserves. Div is a bit of a sideshow vs capital appreciation.
I agree a divi would be something
Great figures again but NO DIVIDEND! The SP has been in the doldrums for years and losing investors money. Could have picked up 5% in a savings account. Something needs to change.
Great RNS
RNS indicates huge grwoth and growing cash pile with more to come this year. Sp should rise around 10^% imv.
Full year 23 results in the next 2 weeks. So expect the mm to drop the price before then. I will have a lovely top up if they do. Results will be great again, just look at the last rns. Dyor and glah
Nice mention ii.co.uk 5 Growth AIM stocks to follow.
Fishing excellent assessment in your post. I recommended this share at 11p! It did move up well but has stalled these past couple of years. I expected the SP and market interest to have blossomed once the US States began to deregulate their gambling laws.I.m also surprised that a competitor hasn’t seen fit to take them out and benefit from the accretive profits and business.
I will wait for April results and hope for signs of a dividend or will look to make my money work elsewhere.
GMR mention at 1:01:30
ttps://www.voxmarkets.co.uk/articles/hot-stocks-on-vox-markets-0149557/
Draftkings have just acquired a usa i gaming business - will we now be a target?
Agree with Taser. This is a b2b SaaS business, as good as if not better than most, with higher margins, profitable and strong growth yet the share price hasn’t moved in a decade or more. The profile of a business like this in the USA would be atleast 70p or more. long term holders haven’t seen a penny back and the comms from the board are minimal at best (they are taking £600k plus in salary and bonuses). I hope they read these boards or get a digest from their financial pr firm although I suspect neither is the case.
Considering the increasing amount of business and associated revenue being generated from the States and that this sector will continue to grow is it possible to get a US listing?
Valuations on UK exchanges defy believe in some cases yet as much as I believe it is overdone nothing has changed for years. So with money pouring out of the UK and into more dynamic markets surely it is a no brainier to get a dual listing. I know there are hurdles and costs but the pay back would be huge.
The last few months has seen us yo young between a relatively narrow range even with the results out and as spectacular as they were the numbers pretty much matched two brokers expectations for EBITDA and Cash Balances.
So what will get us out of this rut? At a macro level mooted changes to ISAs may help AIM but unless there is takeover talk or dual listing what is the catalyst here near term?
Just get the feel they need to be a bit more dynamic and with the spare cash either target an acquisition or consider merging to realise shareholder value. A full takeover must be a consideration in an industry awash with big players looking for niche additions. 70p fair?
Surely if there If there is no inaugural dividend (and a token halfpence one would not reduce the cash that much) then we deserve an announcement about what the cash is intended for?
To be fair, I didn't say no divi until we got to £1, just not yet. It could well be part of the mix before then. But the US market in particular still has a lot of room to grow and in the short term I think we would be better off focusing on that.
A divi at some point over the next 4 years if and when growth slows to single digits sounds fine. I can't see growth slowing to single digits any time soon though, certainly not within the next 2 years. Currently only around 13% of Americans can legally access an online casino(according to eilers and Krejcik), a number that will continue to grow as more states legalise. From the same report the market grew 30% in 2023, so 25% growth rate for GMR over the next 4 years doesn't seem crazy to me. From Gaming realms 2022 annual report North American Rev grew 122%, and 2021 North American Rev was more than all previous years combined. We are waiting to go live in Virginia this year as well as Greece (and probably more I'm forgetting) so 2024 already has some growth guaranteed. Not to mention the new partners we've gone live with in jurisdictions we are already up and running in or new games we have added to existing partners.
It is a lot of cash to be sitting on, and that cash pile will only grow if they have nothing else to spend it on so a divi in April could well be what they decide. But my guess is that is still a year or 2 away. But it's just my guess.