Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Here we go , again ..........
.. so company has put itself up for sale... maybe 120-130p perhaps??
These strategic reviews can take anywhere from 3-12 months in my experience. With a healthy bank balance I don't suppose the board will be on a 'hurry' up mission to complete. They say an update on the strategic review and capital structure will accompany the Nov trading update on Nov 9th. How comprehensive this will be we shall see.
Ahead of the 'all options' review being undertaken we have the cash return to shareholders that has been mooted by some at around 30p a share. This would cost c £56m and a retrograde step imo though the bod might be more interested in saving their jobs via a poison pill defence.....giving us the money as opposed to a bidder! The strategic review is a delaying tactic as this should have been undertaken long ago when the for sale sign was up for the Pools and im pretty sure they know where we are headed! The compound case appeal by HMRC has been dealt a blow as the Supreme Court has reserved judgement on the Littlewoods case but said it intended to allow HMRC's appeal or refer to the ECJ which was an unexpected turn of events as this could considerably delay proceedings. We await adjudication probably due in October. The saga continues.
Gambling review next month set to trigger sharp falls in bookies share prices already down some 13%. Worries over the 'crack cocaine' one armed bandits pull stake being limited to £2 a go will have drastic effects on bookies turnover and profits. Sads alone are forecast to lose c £440m in t/o should the £2 limit be introduced. That may not happen most observers feel a cut from £100 to £20 as most likely scenario that the bookies could live with. This would lead to shop closures (no bad thing) and a profits tumble which might whet GVC's interest in returning for another tilt at Sads. With the Treasury keen to keep as much tax income as possible they may decide to raise tax on online gaming should the spin rate be lowered to £2 and a cut to anything under £20 a spin would be very damaging to profits. The cost savings from the merger would be wiped out making the Sads/Coral merger a wasted effort. Thank goodness Penrose sold off the loss making Bet Direct all those years ago. We have no regulatory worries here unlike the big 3 bookies our move to the States being a little masterstroke when we bought Scientific Games.
Ex-Pools owner Spo is for sale and the top two men have suddenly left- but all is going well, insists chairman Richard McGuire. The sports bet business said today that it is starting a "comprehensive review", with "all options under consideration.". Sportech which used to operate the very profitable football pools is now a technology gaming based business with a strong US arm. Possible buyers for the business if a sale is pursued could be either a rival tech player or a consumer betting brand in need of a new back-office kit, say analysts... (Precised from the London Evening. Standard 18/9)....nothing we don't already know...but there's no publicity like bad....
Penrose and wife reduce holdings in Spo by selling 300k @95.291. Ex (to be) CEO Penrose now holds 191k shares. Significantly reduced from last year.
I guess one could find out with a lot of digging and time wasting....having suffered a potential disaster elsewhere I am now completely out of the market & have no interest in returning...ever!! Tbh ABLE I'm not that interested now. Suffice to say with nil cost options etc I guess they cleaned up....unlike you and me! I shall keep an interest here as mentioned in a prev post but that really is about it. There have been too many extremely odd and smelly happenings these last few years that shout insider dealings and various other skullduggery especially in the Aim market. I'm convinced I have been royally 'turned over' just recently....but I may be the only one to think that, so I'll leave it the in-out and day traders and pass away my remaining years with the ponies....a reasonably straight profession.
Good morning to you John Lewis 79! A question that I am often asked is who really benefited from the recent hand out we know that you sold some for free but it would be interesting to see what percentage of the 21 million pounds the directors accounted for and how their shares were acquired?
Morning ABLE...I read the article on line (Alexandra Frane?)but tbh I learnt nothing new. Most of the articles supposition has been discussed ad infinitum on this BB for a long time...US listing & or partnership etc...an outright sale would be preferable given our cash balances but with a new switched on management and our world wide spread the price would have to be half decent. Best to wait and see what transpires.
On page 42 in The Times today Sportech is covered by a very interesting discussion on their future. I would suggest that it is a must read for every shareholder that is interested in their holding instead of reading blogs that are with or without substance.
Sure you have all seen, read the latest rns....kinda what I have been expect'in for yonks. Can't say we're much further along as these strategic reviews take forever and time slips by as the world moves on. That's the bloody problem why have they not appointed a new CEO/CFO? Oh yes...this is SPO...FFS! Still a hold .....just
More waiting ahead for Spo on the US courts ruling on an expanded remit for sports betting being lifted which could be transformational for the industry in the US. Decision not due till next summer. Meanwhile PH expect P/t profits of c £3.5m and a 'heady' 75x forward earnings. Not justified imo and then only if a bid is being mulled over. Further shareholder returns may be on the cards this year prompting holders to stay on board.
I'd like to clarify my position here. I am out now owing to problems elsewhere. However I have several family members in here on my advice, so will be speaking for them. I do not personally intend to invest owing to the fore mentioned but will post as if their shares were mine. I mention this because I find it wholly inappropriate to comment on shares one has no holding / interest in which seems to happen on a lot of BBs
I cannot fault your logic vis a vis Spo wholeheartedly agree! However you lost me on the 'energy stuff' mind you electric cars and fuelling them that's a nightmare! I do want to see some action/progress.. blimey they (Penrose) has had long enough to think about where Spo sees it's future prosperity. A sense of urgency is required, there's many a Co in the US that would complement our activities if not even bid for our worldwide presence in horse racing and leisure related divisions. I cannot fault Penrose there he now needs to sweat the assets!
Good morning to you too! You have highlighted the plight of the gambling industry at present correctly and that is why before it is too late they must attempt to acquire attractive prospects and, if you recall there was once a headlong dash to get positioned in the American gambling market with disastrous consequences, at least Sportech followed legal procedures and appear to be gaining traction which makes them an attractive proposition to the right company. The real growth stories comes from the fledgling industries especially energy related to transport where petrol and diesel become obsolete. In principal you have a choice between electric and hydrogen fuel power, which do you think will win out? for my money it will hydrogen fuel power and the reason being that the heavy vehicle market will be problem free as companies will have there own refuelling stations. With the electric vehicles there does not appear to be any cohesive plan and as the market expands so will the problems. The dragging of the heels in the car market is because the company wants to get it right and with Shell in the back ground who is willing to bet against them?
Morning ABLE... what misleading statements of fantasy have I posted? I'm unaware of doing so and that's the first time I've ever been told to get real! As I'm sure your aware anything I post on this BB is just one man's opinion to be taken with a pinch of salt. You may agree with my light hearted side swipes at Penrose & Co or not. I do not take offence if you disagree with everything I post...I mostly do it myself! Anyway despite your observations I am most likely the longest or one of the longest serving holders of Spo stock on the register so you will no doubt gather that I must have the interests of the Co close to my heart. However I reserve the right to disagree with Co policy and the management now and again. For instance look at the top line these past 10 years v the All Share. As ever healthy debate is to be encouraged...ultimately we all want the best, just disagree as to how we get there.
I think you should get real and understand what is happening in the real world instead of coming up with misleading statements of fantasy. You will recall that I suggested some time ago that there would likely be a special dividend and you told me it was pie in the sky. Well it has happened and, most likely it is to do with the general situation business wise in the world and I happen to be all for what is in the best interest of all concerned.
luckyjohn....I like your moni(c)ker! After a recent disaster in one of my stocks I'd be name changing to unluckyjohn! I might go with that should I sign up elsewhere....
Penrose should tell those pressuring him to pay out a substantial divi to get lost! Use the money to grow the business not for pis to ipss up the wall (as I would). Why the sudden largesse with our money jeez if we were netting £50m a year fair enough.... but we ain't! Of course you may think they will waste the money anyway and the cash would be safer in your pocket Well its a thought!
Ask yourself ABLE apart from the ridiculous attempted bid from those losers in Canada why has no major UK company bid for Spo? GVC a very well run outfit has eyes on Coral/Sads....why? Given the increased regs and a potentially catastrophic hit to profits if the one armed bandits are limited to a couple of quid a spin, increased estate charges, increased redundancy costs, the closing down of betting shops, Sads had 4 in the space of 2 miles along my high st not long ago....now none! I don't rate our management as high as GVC's or rather didn't until they put feelers out for Sads....bad move. Could be a blind as they prepare a stealth attack on cash rich Spo? Will it happen? No! Why? Too bloody obvious! I thought the logical move would be a tie up with Betfred...again too bloody obvious. Maybe Spo does not tick the right boxes but us or Sads, WH and PP where would you invest....too bloody obvious!
I wonder how much they are talking about when they mention substantial dividend....
The company has given a most valid reason for quitting the UK due to the headwinds facing all gambling companies in favour of investing abroad and, anyone with the slightest knowledge of investing will realise that the move is in the companies interest. From my perspective it reinforces the company's growth perspective and now strengthens the likely hood of a takeover. The logic is; just look at the other major companies struggling to just stand still with the increased threatened legislation hanging around their necks how are they going to achieve growth? The answer is quite simple they will target the most attractive proposition. Which of you can oblige with a crystal ball to help me out?
I am very glad that the company have announced a substantial special dividend if approved. My first post on this subject was removed and I would like to know the reason why? When investors realise that this company is no longer in a moribund state I believe the shares will take off according to the markets perceived outlook.
I have never been very keen on dividends preferring the money to be used for the longer term benefit of holders. I know this is a minority point of view but....heh ho...Results were about par as always. A better H2 looks likely with more news to come from the Playwin partnership, could be a big driver of rev's in the years ahead. As ever with Spo they promise much....