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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
888 seems to offer much better value now than Flutter or Entain
Flutter trades at about 3x Revenue
Entain trades at about 2x Revenue
And 888 is only trading at about 0.25x Revenue
And a forecast PE of only 3
So the 888 share price could easily rise by about 300% without looking expensive
888 seems to offer much better value now than Flutter or Entain
Flutter trades at about 3x Revenue
Entain trades at about 2x Revenue
And 888 is only trading at about 0.25x Revenue
And a forecast PE of only 3
So the 888 share price could easily rise by about 300% without looking expensive
888 seems to offer much better value now than Flutter or Entain
Flutter trades at about 3x Revenue
Entain trades at about 2x Revenue
And 888 is only trading at about 0.25x Revenue
And a forecast PE of only 3
So the 888 share price could easily rise by about 300% without looking expensive
The review is not a problem as 888 have not done anything wrong
FS Gaming bought a big stake in 888 and they wanted the CEO job but 888 has now broken off all negotiations with them
What more could 888 have done?
They cannot stop people from buying their undervalued shares on the stock market can they?
So the review is just a formality now and so we can expect to see another 50p rise in the 888 share price when they get the all clear
New CEO in place
On target for 35p eps in 2025
On target for 1x Revenue valuation
On target for £4 share price within the next two years
And in the longer term we are still confident of an industry average 2x Revenue valuation for a share price of £8
888 acquires BetLion
Africa is going to be a huge growth market in the next few years and it looks like 888 are going to be one of the leading players
On target results to be released in the next few days
On target for eps of 35p in 2025
Share price will eventually reach £4 for a very low valuation of 1x Revenue
hxxps://www.marketscreener.com/quote/stock/888-HOLDINGS-PLC-4005509/news/888-888AFRICA-acquires-BetLion-to-continue-expansion-across-the-continent-44482056/
So if there is no stamp duty on purchases of 888 then why have I and many other investors been charged 0.5% stamp duty by very well known UK brokers when buying 888 shares in recent weeks?
Do you think it is a scam?
Finance Magic
That is not correct
Stamp duty has nothing to do with where the person lives. It does not matter whether they live in the UK or some other place. If the company is registered outside of the UK then there should be no stamp duty. Just as there is no stamp duty for purchases of companies registered in the Channel Islands
888 is registered in Gibraltar and so there should be no stamp duty on purchases of 888 shares
So does anyone know the real reason why many investors have been charged stamp duty when buying 888 shares recently?
Stamp duty was never charged when buying 888 shares before this year
888 is basically trading at a discount of about 90% 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 0.2x Revenue
The 888 share price is therefore trading at a discount of about 90% to Entain, Kindred, and Betsson
It is 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 of about £8
And even a very low valuation of 1x Revenue would give a share price of £4
Also, does anyone know why brokers have recently started charging 0.5% stamp duty on purchases of 888 shares ?
There was no stamp duty on purchases last year and now there is
Very strange
888 is registered in Gibraltar and so purchases of the shares should be exempt from stamp duty
Eventually these very undervalued 888 shares will be trading at 1x Revenue or £4
Flutter trades at 3x Revenue
Entain trades at 2x Revenue
Kindred and Betsson also trade at 2x Revenue
And 888 trades at 0.2x Revenue
The 888 share price is therefore trading at a 90% discount to Entain, Kindred, and Betsson
The very low valuation of these world class assets William Hill and 888 are absurd in comparison to the other main gambling companies
The new CEO for 888 will be announced very soon and earnings are on track.
So, as Investec has said there is reason why the share price cannot recover significantly and move towards £2 within the next few weeks and months
There is also zero possibility that the UK licence will be revoked as 888 have now walked away from the discussions with FS Gaming
So 888 has done everything that UKGC wanted them to do, and so there is no possibility of any licence being revoked
The UKGC is also not going to make over 10,000 William Hill employees unemployed for no reason
So, eventually the 888 share price goes to £4 under the new CEO, or it will eventually be taken over for a very cheeky price of about £2 by another big player like Kindred or by a private equity group like Apollo
The wording of the Gambling Act appears to be complete nonsense.
So any investor is free to take a 20% stake in a UK betting company at a potential cost of hundreds of millions, but if the UK Gambling Commission decides later that they don’t like the look of the person they can just take away the UK licence and effectively make a £10 billion company completely worthless?
Is this correct? If so the legislation is absurd.
So Donald Trump could buy 20% of Entain tomorrow, and this would trigger some UKGC rule that could see Entain become worthless because the Gambling Commission did not “approve” of Donald Trump as a person?
Absurd.
Investec analyst Roberta Ciaccia said :
“With the company still fully operating in the UK, a new CEO expected to be announced soon, and what we regard as a clear and reasonable relaunch plan laid out, we see no reason why the 888 share price should not recover significantly once this situation becomes clearer.”
The announcement today said that a new CEO would be appointed very soon, and that 2023 results were on track
So 888 are still on track for 35p eps in 2025 and a low PE valuation of about 10 would suggest a fair target price of £3.50 for the shares
And a low valuation of 1x Revenue or £1.8 billion would suggest a fair target price of £4 for the shares
In response to the news, a spokesman for FS Gaming said: "We were completely surprised by 888's statement and perplexed by how the company has orchestrated this as we remain relatively small public shareholders with no access to any non-public information and we were engaged in dialogue regarding the best strategy to maximise the value of these world-class assets. We will continue those efforts."
So the news about FS Gaming does not really change anything
FS Gaming knew that the 888 share price was hugely undervalued and that has not changed
The 888 share price was still undervalued whether or not Kenny Alexander was appointed the new CEO
As Investec says, 888 will appoint a new CEO very soon and the share price should recover significantly
888 is obviously hugely undervalued in comparison to its competitors and the share price will probably soon reach £3.50 or £4 whether Kenny Alexander or someone else is the new CEO
Gewillia
Thanks
Yes I understand Flutter is very big in the US but 888 is still hugely undervalued against Entain, Kindred, and Betsson
New CEO soon
Most likely Kenny Alexander
On track for Adjusted EPS of 20p for 2023
On track for £2.50 to £3 share price
The huge difference in the valuation between 888 and Flutter can also be seen by looking at the Adjusted EPS for FY 2022
888 had an Adjusted EPS of about 15p in FY 2022 (PE of less than 7)
And Flutter had an Adjusted EPS of about £1.90 in FY 2022 (PE of over 80!)
So, on this earnings valuation, Flutter is over 10x more expensive than 888
And the same absurd difference in valuation can be shown by Price/Revenue ratio
888 has a Revenue of £1.8 billion and a Market Cap of £450 million (0.25x Revenue)
And Flutter has a Revenue of £7.7 billion and a Market Cap of £27 billion! (3.5x Revenue)
So, on this Revenue valuation, Flutter is about 14x more expensive than 888
There is no good or satisfactory reason for these huge extremes in the valuation between the largest gambling company Flutter, and the third largest gambling company 888
FS Gaming, and Kenny Alexander, and activist investor HG Vora, must have seen and calculated that 888 is hugely undervalued
If 888 was trading at a similar valuation to Flutter, the 888 share price would be somewhere between £10 and £14
TerryMC
You are just talking nonsense
888 has said they will only resume dividends when debt is down to 3x earnings and they expect that to happen in 2025
Revenue is not an unreasonable valuation metric for gambling companies but it should of course only be used in addition to all of the other valuation metrics. Bookmakers or gambling companies like 888, Flutter, and Entain, have a fairly simple business model. Punters put on their bets and on average they only get about 90% or 95% of their money back in winnings. So the higher the turnover the higher the profits will be for the bookmaker. And it is not just Flutter that trades at 3x Revenue, or Entain at 2x Revenue. Take a look at some of the other large listed gambling companies like Kindred or Betsson. They also trade at about 1.5x Revenue or higher.
So 888 is the exception in comparison to all of the others as it is only trading at 0.25x Revenue. There is not really any good reason for this huge undervaluation and presumably FS Gaming and the others who have taken big stakes have also seen this.
Yes the market may be worried about the debt but take a look at Flutter and all of the other gambling companies. They also have large debt but that is how these companies grow in this industry. They take over other companies and they have to take on debt to do this.
888 can easily manage the debt as it is easily covered by profits and cash flow, and so I am quite confident that 888 can reach their target of 35p eps and 3.5x debt in 2025. And when they do reach these targets the share price will probably be over £4.
TerryMC
Get a life
Analysts are forecasting eps of 10p for 2023
And eps of 20p for 2024
And eps of 30p for 2025
And the company are forecasting eps of over 35p for 2025
And a debt to ebitda ratio of less than 3.5 in 2025
The new CEO will probably be announced very soon and it will most likely be Kenny Alexander and his team from Entain
After the announcement the 888 share price will probably be over £2
And when the eps is 30p the 888 share price will probably be over £4
Telegraph article says FS Gaming and Kenny Alexander are close to taking control of 888
Would not be surprised to see the 888 share price at £2 if this news is confirmed
Kenny Alexander is the man who built GVC from a £30 million AIM share in to Entain, a multi billion pound FTSE 100 company
And expected earnings per share of over 35p in two years should bring the 888 share price to over £4
And even £4 is only 1x Revenue for 888
Entain trades at 2x Revenue, and Flutter trades at 3x Revenue
So it would be quite possible to see a 888 share price of £8 within two years
It is certainly looking very good for shareholders of 888
https://www.telegraph.co.uk/business/2023/06/24/kenny-alexander-gambling-king-take-control-888/
These will eventually be priced in a similar way to their two main competitors Flutter and Entain
Flutter trades at 3x Revenue and Entain trades at 2x Revenue
2x Revenue valuation for 888 gives a price of £8
3x Revenue valuation for 888 gives a price of £12
The debt here is easily manageable and the other main competitors Flutter and Entain also have very large debts but no one seems concerned about them
Kenny Alexander prepares for coup at 888
https://www.telegraph.co.uk/business/2023/06/18/kenny-alexander-888-takeover-william-hill/
Kenny Alexander prepares for coup at 888
https://www.telegraph.co.uk/business/2023/06/18/kenny-alexander-888-takeover-william-hill/