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‘The holy grail in licences’…Do you get the feeling the market doesn’t agree.
One of the only betting firms I know that fails to make a profit year after year.
The reality is that the hoped for opening up of California disappeared with the failure of the proposal and it looks like the earliest date is 2026.
I am still fascinated by the valuation of £75m for the licences. There is a lot of wishful thinking there.
We need to sell up as soon as possible as we consistently lose money. There is value in the business and of course the licences but as a business looking for a buyer rather than being approached directly investor should temper their ambitions.
However, any gossip, rumours, information on interested parties has been thin on the ground to say the least.
Tumbleweed…..
Aka Entain are in talks to sell off numerous licences that they bought Into including the Netherlands as they grapple with affordability checks in uk and sluggish turnover and they said they want to concentrate on there fastest growing market the USA Webis have the holy grail in licences imo surely someone with gambling foresight has to step in here even a private equity fund to set up then list company on Nasdaq surely a no brainier or am I missing something read Entain news today if you like and correct me accordingly blistering cheap imo buy dyor
That's a pay day little bit for me here. Due a silly rise day !!!!
I'm close to adding more / averaging down here too...
I openly jump in and out of this one and the difficulty here is that it stays flat for so long whilst money made elsewhere . GST and HE1 for me just now are 2 exciting plays. Think it might perhaps be time for a little dabble back in here though.
Taser, I slightly respect your cynical approach, and get your reasoning behind it. However, in previous posts including the one you mention, they say they are open to discussion to M and A etc, but now they have instructed the key executive to formally accelerate this process, I think the dialogue can be interpreted in a far more positive way than you are suggesting.
Let’s see what the next few weeks bring 😊😊
Feb 2023 - We are aware that we are probably in the middle of the pack, and we remain open to all discussions with credible licensed operators throughout the world in relation to merger and acquisition opportunities at an operating business level, providing they operate in a licensed and regulated environment and pass due diligence.
Playing devil’s advocate it was the same message last year. However, like everyone else I live in hope but the reality is another 6 months of silence. Let’s see.
Exactly and your £75 Million figure is probably under valuing the licences, considerably. The most recent RNS confirmed a takeover deal would be considered if the price was right / would benefit the shareholders. Xophe13 correctly points out that the major shareholder (check out the individuals concerned) would need a "substantial offer" to make it worth their while.....
"We are very aware that strategic interest in USA regulated gaming, including horseracing, is very strong at present and will continue to be for several years. The larger operators, and also new entrants to the market, are looking for stable operations to either merge with or to acquire outright. This is exactly what WatchandWager offers, and the key Executive has been instructed by the Board to pursue these opportunities, if they are of benefit to shareholders. We will keep shareholders fully informed of any developments in this area".
Good luck, Brighty
As Galloway own approx 65% of Web it’s going to take a substantial offer to tempt them to sell.
Yes I agree, it is very hard to value a stock
Like this and to value the licences that Webis hold. However, with the intention seemingly of the BOD to look for M and A or a tie up or merger, any news would send the price soaring. I bought a few more yesterday, as this price is massively undervalued, you might have to wait a few weeks or months to see a substantial paper profit, but trust me it will come.
Thanks for the reply but there are no metrics to get to a £75 million valuation, 15 times current market cap. However, I am not trying to be obtuse. I can’t find a way to value the licences. I would of thought they would of been intangible assets on the balance sheet but they are not.
My feel is that’s wishful thinking. We currently have all the licenses and can’t make a profit. I am not sure that until the Californian legislation to legalise gambling is a bit closer that anyone would pay close to that amount. Very happy to be proved wrong.
Yes, a couple of points to factor in here re our value. Webis has renewed all of its licences, some with options to 2030 (California). A very smart move. There is significant value attached to the licences. e.g. as a snap shot, back in 2020 it was being proposed that new entrants in California would have to pay $10 million dollars as a fee for a licence where as existing operators (such as Webis) would have their fees halved. Why pay $10 million for a licence when you can buy a ready made business, such as Webis. The start up costs etc would make Webis attractive in the £75 million range re a takeover. i.e. The WEB share price & Mcap is tiny when compared to the value of all of our licences in North Dakota, California, Maryland, Colorado, Minnesota, New York, Washington and Kentucky. I don't think people understand the magnitude of these licences and how much it would cost a new entrant to start up a similar business. Hence why M&A activity for WEB by a big player will happen here at some stage. Also, as an aside when the WEB share price moves here it moves quickly and has gone from 1p to 8p in a few days before. The other point to flag up is that in this space share price movements can be quite stunning. In March 2021 B90's share price rose from 4.58p to 38p in a few days.
Are you able to breakdown that fair value of £75m? If only.
£75 Million would be the minimum fair value sale price based on the asset worth of the licences, all of which have been renewed. i.e. Webis has its ducks in a row. What good timing for M&A activity / discussions! I have been buying this over the last 3 months from 1.15p with a minimum x 10 in mind of 15p a share as my exit price / £75 Million approx. California debt / USA Presidential elections and a recognition that CA will follow other US states re betting (eventually) should see this re-rate in 2024/2025. £75 Million, by the way, is a cheap entry point for a major player.
The real value here is a JV or take over and I'll always hold a position here in anticipation of that..
The RNS today says that's a big focus of the web.l Board too.
Improving trading somewhat could see this go back to 3 or 4 p into 2025 granted ....but the right JV/TO double that or more imho..
It is only ‘adverse conditions’ if abnormal. It was the same last year.
This is a loss making business year after year supported by company loans from a connected party. The Californian path to legalisation of gambling has not been a fast as hoped.
There is a huge difference between an unsolicited offer and planting a for sale sign. However, we are where we are. Get it done.
Firstly, it’s a little disappointing that the turnover and profit are down a fraction but if it’s down to adverse conditions of the racetrack to an extent that is understandable.
However, on a more positive note, I am staggered that the share price is currently down in trading today, the board seem to be angling towards selling out or a merger/ tie up with a much bigger group. This has to be a compelling reason for the share price to increase significantly as we are starting to see some end game of this stock even without the main prize of California having to wait for at least 2026 before gambling is legalised. This should be a buying opportunity not a reason to sell
In demand I'd say 8-10p per share is true value.
But if key shareholders are now pressuring management to pursue an 'exit' then more likely 4-5p.
Question is what would it be worth per share !! It is easy to sell up but harder to get true value. What are people’s expectations?
About time.
They’ve had more than long enough to grow a meaningful and profitable business. It’s time to create some share holder value by selling up.
There's a very interesting line coming out of WEBIS today that a merger or takeover of WatchandWager is being persued by the BOD of WEBIS. See below:
"We are very aware that strategic interest in USA regulated gaming, including horseracing, is very strong at present and will continue to be for several years. The larger operators, and also new entrants to the market, are looking for stable operations to either merge with or to acquire outright. This is exactly what WatchandWager offers, and the key Executive has been instructed by the Board to pursue these opportunities, if they are of benefit to shareholders. We will keep shareholders fully informed of any developments in this area". - Denham Eke, Chair Webis Plc 26 February 2024.
This could, at last, get very interesting if a takeover or merger occurs. It's always been about our licences and what a major player would pay to gain entry in to this market. It looks as though the game is on.
Watch this space....
Good luck, Brighty
From the RNS dated 30/11 the planned software development work should be completed soon and the B2C marketing campaign starting next month. Hopefully we will find out how this has gone so far with some profit forecasts for 2024.
This company drives me nuts. It behaves like a private company and seems to lack any strategic direction or plans for growth. Investor engagement is zero and they seem content to loss money each year and sit in hope for legislation change that is not coming this year.
Probably like many others trapped in at this price.
There has been some consistent 100k sells over last few weeks. Interims due any day now.
Yes, the prediction. Was 23.1billion dollars, up from 16 billion last year, a massive increase in betting turnover. Most important statistic is only 1.5 billion from legal betting, which goes to show they really do need to crack on and legalise in more states asap