Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
As someone who owned shares in Ladbroke from the start in 1967, and whose family have a holding in GVC, I am struggling to see what is happening to value in what has been put together here. Others may have a better understanding of the position.
GVC paid a reduced £3.1bn for Ladbroke Coral (having bid £3.9bn dependent on the slots outcome). Earlier they paid £1bn for Bwin and ££485m for Sportingbet. GVC had a value itself before all those bids. According to FTSE 250 the market cap of the combined business is now around £3.5bn.
The shares have come down from £11 to under £6. What am I missing about GVC, other than their edge on the technical side and the prospect of something unquantified in the US (assuming betting shops are fast become old hat).
You missing the coming increases in divi and costs of synergies .
I mean the reduction in costs due to the synergies .
Reductions in costs and synergies were baked into the rationale for paying £3.1bn for Ladbroke. They have to be radical and far reaching if they are to make any sense out of the bid, which cost them their cash and a large element of debt.
I went into a Coral shop to place a bet on the Open recently while racing was going on and the place was empty. Since what GVC paid for Ladbroke (£3.1bn) is almost all the current value of the combined group (£3.5bn) we have to hope that they can convince the punters who used the betting shops that will close to move to GVC’s on line offering rather than to Paddy Power, Sky etc.
Historically gvc was always good at migrating customers , very careful and never rushed the things , they have done it with Btwin and Sportingbet .
The market cap here now is £3.4b .GVC own Party Gaming which was valued at £6.5b in 2005 when it was high flying in the ftse 100.It also owns now ladbroke/coral.Ladbroke was valued at £2.1b in 2013 this value was not including Coral as that deal had not been completed then,so without Coral this is £8.6b.So is there a lot of hidden value here ? Also has anyone heard anymore about the Adult Gaming Centers or seen what one looks like ? Maybe we just need the sector to come back in favour.
Partygaming valuation of £6.5 bln in the past raises the possibilty that the brand might achieve this value again . Then imagine spinnig it out and float separately . How gvc shareholders would benefit ????
I am not clear how any Partygaming valuation has any relevance for GVC shareholders now? I don’t know where the £6.5bn valuation went - there is no audit trail other than what looks like a company that doesn’t seem to be traded now. Was it integrated into GVC when it was building up the company that took over Ladbroke Coral? There is a lot of interesting history but no evidence of any money/value which would add to the GVC market cap.
The basic fact is that if you put together all the parts that went into making GVC pre the Ladbroke deal and factor in the amount that GVC paid for Ladbroke the pre deal value of GVC has virtually disappeared - the whole shebang is only worth slightly more now than what GVC paid for Ladbroke of £3.1bn. That is my difficulty in understanding why the whole world of the “experts” is pointing to GVC as a massive strong buy. And has had that rating since the bid for Ladbroke. What am I missing?
With my post I indicated that Partygaming might be revived . In fact I do not know how they fare now or even if they do any business .
Bwin Party was taken over by GVC on 1st Feb 16 for 1.1 billion so some value has been extracted from this deal so far. As to where the value of the Ladbrokes Coral deal has gone we will have to wait and see. I guess we just need this whole sector to get a re rating .Maybe when the USA starts to fully open this will help too.
City and British investors tend to see any business listed on Lse very narrowly as British,making money in Britain. Cut to Fobt made them wary that it was the assault on British market.
But as we know this is untrue certainly among ftse 100 concerns a large percentage of which make their money abroad.
He he he exactly and we are not even in ft100 .
What has th st got to do with it in 350 and all share.
We hold the stock and have seen the share price halve from £11 to 548p. The market cap is £3.2bn which is roughly what the company paid for Ladbroke. On that basis everything else is worth nothing.
Interesting to look at the directors sales. It shows sales in the 900p range, and most recently two key directors selling their shares at 666p.
It is easy to say it is going to do an Acado and turn betting shops into an on line giant. I hope it Willburn there is nothing evidence to support what is a falling knife.
The problem is gambling has become a political play now. With talks moving on from “having a flutter” to becoming addicted and ruining people’s lives. Whichever government is in power they will have a mandate to curb gambling. Whether in betting shops or on-line. I5 will be interesting to see how GVC and others like William Hill and PaddyPower can do what the tobacco industry couldn’t , and make betting relatively harmless.
Look at the Flutter Entertainment results today : profit after tax down but overall revenue up , divi maintained and shares nicely up . Profit after tax down due to government taxation .
In the past month the #hare price has risen by 24%, from 548 to 682. And the market cap has increased from £3.2bn to almost £4bn. Which is a hopeful sign in what has been a disastrous fall since the takeover of Ladbroke.