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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
That 20% growth is already faltering and it will likely disappear completely when new entrants appear
Do you really think the other thousands of Fintech Payment companies are just going to sit back and leave the whole of Africa to CAB ?
Any of the big US Fintech Payment companies will eat CAB for lunch
There is no big moat here or even a small moat
A thousand companies can enter the Africa market tomorrow or whenever they want
CAB profits and growth will then disappear
As I said
Why invest in CAB when you can invest in major UK banks on a PE of 4 and a dividend of over 7% ?
Far too much risk here with CAB when the major banks are just as cheap
Why invest in CAB when you can invest in major UK banks on a PE of 4 and a dividend of over 7% ?
Far too much risk here when major banks are just as cheap
What is the actual value here of all of these unlisted investments?
Nobody really knows because they are not listed on any stock market
Graphcore and all of the other investments do not even make any profits
So it is quite possible that the total actual value here is near to zero
What is the actual value here of all of these unlisted investments?
Nobody really knows because they are not listed on any stock market
Graphcore and all of the other investments do not even make any profits
So it is quite possible that the total actual value here is near to zero
Time to take profits
Many negatives here for the share price going forward
Very low visibility on earnings
Will there be another profit warning and then another?
Profit warnings usually come in three
Earnings are also very low quality here as there are many thousands of other Payments companies that can easily take away market share
Very low moat here for competitors to take market share and destroy any profits
Why are management not buying the shares?
What are they not telling us?
Anything connected with Africa usually ends in disaster
Price here is absurd
PE of just over 2 v industry average PE of 12
Entain PE is 16
A normal PE of 12 gives a share price for 888 of over £4
Debt situation for 888 is also easily manageable
Ebitda is about £400 million and annual debt payments are about £150 million
Fair value is about £4 or £5
Takeover bid or Private Equity bid is also very possible at a price of about £3
So nobody seems to have a clue what this Caliplay “option” actually means
Can anyone explain exactly what this legal action is about?
The press reports are not very clear
Caliplay holds an option to redeem the service fee
What does this even mean?
Does it mean Caliplay can refuse to pay the €34 million?
What does the option allow Caliplay to do?
Does it allow Caliplay to pay zero or to pay less than €34 million?
And why would Playtech have agreed to such an unclear agreement that has now ended up in a Mexican court and is likely to end the JV at a great cost to Playtech?
Nobody is trying to compare 888 with Flutter
Flutter has a Market Cap of about £25 billion
And 888 has a Market Cap of about £500 million
So Flutter is worth about 50x the value of 888
Those who can see the value in 888 are saying that 888 is undervalued on the following basis
Most gambling companies are valued at a multiple of more than 1x Revenue
A very low valuation of 1x Revenue for 888 gives a share price of about £4
The EPS forecast for 888 in 2025 is 35p
This gives a PE of about 3 at the current share price
A normal PE of 12 would give a share price for 888 of over £4
888 is trading on only 4x EBITDA for 2024
So it is not difficult to see the value in 888
If the forecasts are met over the next two years then there is no reason why the 888 share price should not rise to over £4
It is difficult to see the Flutter share price rising by 300% to a Market Cap of £100 billion in the next two years
But it is not difficult to see the 888 share price rising by 300% to a Market Cap of £2 billion and a share price of over £4
A price of £4 gives a very low valuation of 1x Revenue
EPS forecast for 2025 is 35p for a PE of about 3
A normal PE of 12 gives a price of over £4
Trading now on only 4x EBITDA for 2024
https://www.sharecast.com/news/broker-recommendations/berenberg-on-888--14488760.html
It is probably just a matter of time before 888 trades at a similar valuation to all of the other companies in the gambling sector
That is about 2x Revenue
This would give a fair value share price for 888 of 2x Revenue or about £8
Target price perhaps £8.88 ? 🙂
A target price of about £7 or £8 is actually quite reasonable for 888 within the next few years
The forecast EPS is 35p for 2025 and so a very low PE of 10 gives a share price of £3.50 and a PE of 20 gives a share price of £7
Entain has a PE of about 20
And Flutter has a PE of about 70
888 is basically trading at a discount of about 85% to the rest of the gambling sector
There is no actual reason for this huge discount
Flutter trades at 3x Revenue
Entain trades at 2x Revenue
Kindred trades at 2x Revenue
Betsson trades at 2x Revenue
And 888 trades at 0.3x Revenue !
Yes, you read that correctly, 888 trades at 0.3x Revenue !
The 888 share price is therefore trading at a discount of about 85% to Entain, Kindred, and Betsson
And a discount of about 90% to Flutter
So something has to change to correct these extreme differences in valuation
Either Flutter and the rest have to fall a long way which is unlikely
Or the 888 share price has to rise a long way
So it is probably just a matter of time before 888 trades at a similar valuation to these other companies in the gambling sector
This would give a fair value share price for 888 of 2x Revenue or about £8
Interesting to compare the forecasts for Vanquis and IPF on Market Screener
They both look very undervalued
hxxps://www.marketscreener.com/quote/stock/INTERNATIONAL-PERSONAL-FI-4007183/finances/
It shows forecast eps for IPF of 18p in 2023, 21p in 2024, 28p in 2025
And forecast dividend of 10p, 11p, and 12p in 2025
The forecast eps for Vanquis is 42p in 2025
And the forecast dividend for Vanquis is 18p in 2025
hxxps://www.marketscreener.com/quote/stock/VANQUIS-BANKING-GROUP-PLC-9590111/finances/
So with the Vanquis share price now lower than IPF, Vanquis seems to offer a far better investment with a forecast PE of 2.5 in 2025, and a forecast dividend of nearly 17% in 2025
The forecast PE for IPF is over 4 in 2025, and a forecast dividend of 10% in 2025
So they both look like that they may be good investments, but Vanquis looks much better value than IPF now