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The most obvious reason why the former GVC/Entain executives Kenny Alexander and Shay Segev have taken a very big stake in 888 is because they can obviously see how hugely undervalued 888 is in revenue terms
That is also the most obvious reason why investors like Parvus Asset Management and HG Vora Capital have recently bought very large stakes in 888
All of the other publicly listed gambling companies trade at a valuation of at least 1.5x Revenue
The largest listed gambling company is Flutter, and it trades at about 3x Revenue
The second largest Entain trades at about 2x Revenue
And other large listed gambling companies such as Kindred and Betsson trade at about 1.5x Revenue
But the third largest listed gambling company 888 trades at only 0.3x Revenue, and that is even after the recent big rise in the share price.
So if 888 was to trade at a similar valuation to Kindred or Betsson, the 888 share price would need to be about £6
And if 888 was to trade at a similar valuation to Entain, the 888 share price would need to be about £8
And if 888 was to trade at a similar valuation to Flutter, the 888 share price would need to be about £12
So that is why so many of those who know the gambling industry very well are buying big stakes in 888
They know how undervalued it is and that eventually the 888 share price will trade at similar valuations to all of the other listed gambling companies
The most obvious reason why the former GVC/Entain executives Kenny Alexander and Shay Segev have taken a very big stake in 888 is because they can obviously see how hugely undervalued 888 is in revenue terms
That is also the most obvious reason why investors like Parvus Asset Management and HG Vora Capital have recently bought very large stakes in 888
All of the other publicly listed gambling companies trade at a valuation of at least 1.5x Revenue
The largest listed gambling company is Flutter, and it trades at about 3x Revenue
The second largest Entain trades at about 2x Revenue
And other large listed gambling companies such as Kindred and Betsson trade at about 1.5x Revenue
But the third largest listed gambling company 888 trades at only 0.3x Revenue, and that is even after the recent big rise in the share price.
So if 888 was to trade at a similar valuation to Kindred or Betsson, the 888 share price would need to be about £6
And if 888 was to trade at a similar valuation to Entain, the 888 share price would need to be about £8
And if 888 was to trade at a similar valuation to Flutter, the 888 share price would need to be about £12
So that is why so many of those who know the gambling industry very well are buying big stakes in 888
They know how undervalued it is and that eventually the 888 share price will trade at similar valuations to all of the other listed gambling companies
Thanks
I can understand why there is a 25% Withholding Tax on dividends as it is an Irish company
But why is there 1% stamp duty to buy the shares?
The stamp duty for purchases on the Irish stock exchange is 1%
But the company is trading on the LSE
So should the stamp duty not be 0.5% ?
Has anyone bought these shares recently?
Did you have to pay 0.5% stamp duty?
I have bought 888 recently with two brokers and one broker charged 0.5% stamp duty and the other broker did not charge stamp duty
Which one is correct?
888 is not a UK company and so I do not think there should be any stamp duty Has anyone bought these shares recently?
Did you have to pay 0.5% stamp duty?
I have bought 888 recently with two brokers and one broker charged 0.5% stamp duty and the other broker did not charge stamp duty
Which one is correct?
888 is not a UK company and so I do not think there should be any stamp duty
Is there Withholding Tax on dividends here?
And is there no stamp duty on purchases?
The debt should be quite easily manageable for 888
Interest rates are near the peak now and will soon be falling again
Entain has about £3 billion of debt, and it is valued at about 2x Revenue
Flutter has about £5 billion of debt, and it is valued at about 3x Revenue
888 is currently valued at about 0.15x Revenue
If 888 was valued the same as Entain, the 888 share price would be between about £8 and £10
If 888 was valued the same as Flutter, the 888 share price would be between about £12 and £15
It will probably take a few years for 888 to trade at similar levels but a valuation of 1x Revenue for 888 would seem to be reasonable
This would give a fair valuation for 888 of about £5
888 have also forecast over 35p eps for 2025, and assuming a PE of about 14, this also gives a fair valuation for 888 of about £5
The largest publicly listed betting and gambling company is Flutter, and it trades at about 3x Revenue
The second largest Entain trades at about 2x Revenue
And the third largest 888 trades at about 0.15x Revenue
So if 888 was to trade at a similar valuation to Entain, then the 888 share price would be well over £8
And if 888 was to trade at a similar valuation to Flutter, then the 888 share price would be well over £12