Member Info for asartara

Why would anyone buy Entain on a forecast PE of 15 when they can buy 888 William Hill on a forecast PE of 3 ?

According to a person familiar with Playtech’s thinking, the idea would be to combine 888’s brands with Snaitech and divest the business-to-business unit.

In addition, Playtech is thought to have identified up to £170 million of cost savings.

Jefferies, which has a buy rating on 888, estimates the potential cost savings would add more than 20% to the combined companies’ EBITDA (earnings before interest, tax, depreciation, and amortisation).

Using Jefferies current EBITDA estimates implies a combined circa £780m for fiscal 2024 estimates comprised of £392 million for 888 and around £391 million for Playtech.

‘Note our estimates show net debt to EBITDA falling from 5.6x at the end of FY23E to 3.5x by the end of FY25E, mainly due to the growth of EBITDA associated with the benefits of the William Hill acquisition and integration,’ Jefferies added.

Following the profit warning on 28 September, 888 maintained its target of more than £2 billion of revenue in 2025 and earnings per share of 25p while reducing net debt to EBITDA to under 3.5 times.

An offer of just over £1.50 or £700 million was a bit insulting for William Hill which is perhaps the most famous name in gambling

Any bidder for 888 and William Hill will have to offer a minimum of 1x Revenue or £4 per share

With no news the sellers are in control here

There was no resistance at 60p and there will probably be no resistance at 50p

And now it has been thrown out of the FTSE 250 and so investors will continue to sell

Next stop 50p

This will likely be 50p within the next few days or weeks and then no resistance to 40p

Selling pressure will just continue from all of the Institutions and investors that only hold FTSE 100 and FTSE 250 companies

Testacle

You only post on this site about 888 and you only post negative comments about 888

What is the point?

Most of the brokers and analysts who follow 888 and who do a lot of research on 888 do not share your negative views

Berenberg has a recent BUY rating for 888 and a Target Price of £1.90

And JP Morgan has a recent BUY rating for 888 and a Target Price of £1.50

Market Screener also has a forecast PE of 3 for 888

The Investors Chronicle has also recently pointed out that 888 is far less expensive than Entain

So no reason for you to keep posting the same nonsense

Growth or no growth

888 is extremely undervalued when compared to other gambling companies

And Fair value for 888 is well over £1.50

What will happen to the price of oil and JOG if there is a world recession?

What happens if there is another pandemic?

Oil price went below $20 during covid

Same thing will happen in the next pandemic that they keep telling us will happen soon

What will happen to the JOG price then?

It could easily fall to 50p or less

Most of their business is in Nigeria

What could possibly go wrong?

The whole thing looks like a Nigerian scam

https://www.ft.com/content/f07153bf-c4b3-4ff2-8dbe-93c0cc0ebad7

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/

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/

Fair value for CABP is probably about 40p

The eps estimate for this year is about 10p and if major banks like Barclays and NatWest are trading on a PE of only 4 then there is no reason why a bank that makes most of its revenue from Africa should be any higher than a PE of 4

And there is also a very large risk that these earnings of 10p are not even stable in future years

If competitors like Wise or any of the other big players were to enter the Africa market in a big way then these earnings of 10p would probably disappear

Fair value 40p

Would not be surprised to see Draftkings make a takeover bid here at about £3

They would be getting two of the leading brands in the gambling world for a very low price

Forecast eps for 888 is about 30p so it would still be a great bargain for Draftkings to get the William Hill and the 888 brands for only £3

a bid from draftkings would likely be a share for ************** at a huge premium to the current 888 price

draftkings is still making losses in the us and so they will be keen to use their very expensive shares to buy up very inexpensive and highly profitable gambling assets in the uk and europe

draftkings shares are over £25 now

i would not be surprised to see a future bid at 1 draftkings share for 5 shares in 888

that would value any future draftkings bid for 888 at about £5

Testaccount

You keep saying that 888 has no growth but William Hill is the second largest bookmaker in the UK by Revenue and the share price is on a forecast PE of about 2 or 3

The share price is therefore hugely undervalued and so it could easily rise to £2 and it would still be very undervalued

If a share is trading on a forecast PE of 2 or 3 then it is undervalued

And even if it has low growth or no growth the share price can still rise by 200% or 300%

Has CAB given any guidance for eps in 2023 and 2024 ?

And what guidance are brokers giving for eps in 2023 and 2024 ?

How does the eps and PE valuation for CAB compare with other Fintech Payment companies such as Worldline or Nexi ?

How does the eps and PE valuation for CAB compare with other UK Fintech companies such as Wise and Equals ?

And is CAB comparable to these 4 other Fintech companies or should CAB be valued in a different way ?

Does anyone know ?

Has CAB given any guidance for eps in 2023 and 2024 ?

And what guidance are brokers giving for eps in 2023 and 2024 ?

How does the eps and PE valuation for CAB compare with other Fintech Payment companies such as Worldline or Nexi ?

How does the eps and PE valuation for CAB compare with other UK Fintech companies such as Wise and Equals ?

And is CAB comparable to these 4 other Fintech companies or should CAB be valued in a different way ?

Most of the posts here are from share rampers who only bought CAB after the share price had collapsed

There were very good reasons for the CAB share price collapse and the market is usually right

Profit warnings usually come in three and so there may be another soon

CAB is clearly overbought now and it looks like some big short positions know that the next direction is down

Time to take the small profits before CAB again tests the previous lows at 50p

Very overbought now

Time to take profits here on various technical levels

The rise of over 50% in recent days is absurd so expect a fall back now to 50p or less

The talk here about growth in Africa also assumes that CAB is the only Payments company in the world that can do FX or send money ! Lol

Lol

There are hundreds of Fintech companies that can enter the Africa market or any other emerging market next week or next month

CAB is just one of many hundreds of companies that will be operating and any excess profits will disappear through competition

When Wise or Revolut or any of the big US Fintechs enter these emerging markets then CAB will probably see all of its profits disappear

Time to take profits here before it tests the lows again

Very overbought now

Time to take profits here on various technical levels

The rise of over 50% in recent days is absurd so expect a fall back now to 50p or less

The talk here about growth in Africa also assumes that CAB is the only Payments company in the world that can do FX or send money ! Lol

Lol

There are hundreds of Fintech companies that can enter the Africa market or any other emerging market next week or next month

CAB is just one of many hundreds of companies that will be operating and any excess profits will disappear through competition

When Wise or Revolut or any of the big US Fintechs enter these emerging markets then CAB will probably see all of its profits disappear

Time to take profits here before it tests the lows again

The main UK banks are on about the same PE as CAB

So why would anyone buy CAB ?

You also get a big dividend with the main UK banks

Dividend with CAB is zero

Fair Value for CAB is about 30p