Member Info for CJ39

It was never ramping, it was what we all believed. I can’t understand what has happened to this share price. Brokers were raising all of their targets to the 200p mark. I have been so pleased with all the news coming from WMH, I honestly thought this would be at pre Covid levels just like the other betting companies by now given the trading updates and other news but clearly I was wrong. I still believe in WMH 100% but I have no idea where the share price is heading, I’m stumped.

We’ve seen three weeks of constant decline from 163p to 122p, I know people are demoralised and now worried about the share price here.
But we have a strong business in a market that always does so well. It’s been a transition for WMH following the end of the £2 limit on the gaming machines and 700 shops closing. WMH are now focused online and growing the company overseas. The board have been making really good difficult decisions to maximise efficiency and build for the future.
We are having an excellent year despite the pandemic that has crippled many businesses and put sport on hold for 10 weeks. It could have been far worse when the first estimates were that hundreds of thousands would die and could put life on standstill for a year. Football and horse racing is back. PGA golf is back. F1 comes back next week. Revenue has only decreased by 33% in the first 23 weeks but a huge drop in cost of sales makes up for that. Add to that the £200m VAT refund and £230m brought in from the share placing, we are in a really strong position going forwards. The Covid vaccines are now being tested on people, it could be just 3 months away before people can be vaccinated against coronavirus and the future for normal life will be return to normality.
I have huge confidence in WMH and this share. Don’t let 3 weeks of decline put doubt into your minds about how good a company we are invested in.

And just for clarification of those figures. The market cap now is £500m down on Feb 12th but the company has £284m in capital raised from the share placing and £200m extra from the VAT refund. Which means WMH’s value as a company is deemed £1bn less in 4 months.

I accept your reasons as being correct but I would counter it with the following. WMH did suffer with a drop in revenue but shop staff, rates rebates and overheads (cost of sales reduced). 888 wouldn’t have had such a drop in cost of sales.
WMH revenue was down 33% over the first 23 weeks of this accounting year but cost of sales were down considerable. On Feb 12th WMH’s market cap was £1.92 * 900,725,706 shares = £1.72bn. As of this evening given that we had a share placing that raised £284m in capital and we had a VAT refund coming if £200m, WMH’s market cap is £1.24bn. So has the company really lost £1bn in value since Feb 12th? No way ever.

Based on share prices on Feb 12th, GVC’s share price this evening is 81% of what it was on Feb 12th. Flutter’s Share price today is 126% compared to the share price on Feb 12th. 888’s share price today is 123% compared to the share price on Feb 12th.
William Hill’s share price today is 62% of the share price it was on Feb 12th.
Answers on a postcard why WMH’s share price is so massively lower than our competitors in the same market?

I agree with your reasons behind each fall. But let’s not forget we saw the share price rise sharply to 112p a while back only for it to fall back to 90p. It went up from there to 123p after the Dunn brothers bought shares only for it to fall to 103p. We then reached 145p and it fell back to 131p. This is the biggest drop of all from 163p to 122p but the share price is volatile as we’ve seen. None of this is really any reflection of WMH. But it does go to show again that it’s impossible to second guess this share price short term.
I am not too unhappy it’s fallen to these levels, pay day next week to buy more shares and we need some solid forward momentum to get this rising again.

Madfist - I’m feeling the same as you. I don’t claim to be an expert but I thought I understood the sports betting market and WMH share. I look at Flutter and they are trading at their highest ever share price so the markets have not effected them. I expected us to be close to pre Covid levels now sport is back and the latest trading statement but we are massively down on pre Covid levels. I don’t understand why. We were 33% down in revenue over the first 23 weeks of the financial year. But saved so much on wages, rates rebates, overheads. We are going to receive a £200m VAT refund which was unexpected and makes us massively up this first 6 months. Football and horse racing is back in Europe. Sport is slow to come back in America but PGA golf is back in America and I am sure keen punters in America will be betting on sports in Europe. I know there are fears about coronavirus coming back to Europe but a vaccine isn’t far away, word is that 2-4 months it may be available. Just hold firm and try not to get demoralised. We’ve seen in the last 3 months the share price go from 190p to 28p, back to 163p. These are huge swings. We’ve had non stop downward momentum since the 163p high, once momentum changes we will soon see this back to levels we believe it’s worth.

We were higher than this 4 weeks ago on 26th May. At that date no sport in UK had been resumed. We were not sure football would definitely return. Covid deaths have since decreased further and a vaccine is now closer to being created. Add to that the VAT refund originally was announced to be 125m -150m but we were told last week it would be more like £200m. Add to that the trading update last week was excellent and that revenue was down nowhere near as bad as first thought. Add also to that the share placement has created huge capital reserves to strengthen the company’s finances and give us far more opportunities to grow the company. But we are down in share price. Just stupid. It’s no wonder a lot of people don’t have confidence in shares. We are 60p down from pre Covid levels and yet we all know we are in a far stronger position now. I’m going to find a small fella and have a fight.

How do Morbox. I don’t personally see the placement of shares as a dilution. There is an extra £284m of capital into the company - if Betfred wanted to buy us out they would need to pay an extra £284m for the business. The share placement adds so much value to WMH, we can compete for far more licences in America, it makes the company far stronger to deal with any uncertainty.
The trading update last week shows that revenue was only down 33% for the first 23 weeks of the financial year. But we gained an unexpected £200m from the VAT refund to be paid in the months ahead. Wages have been massively reduced thanks to the government’s 80% furlough scheme. Rates rebates and lower overhead costs means that we are better off than a normal 23 weeks of trading.
Given that Flutter’s SP is higher now than pre covid (and they too had a huge share placement in past 2 months) and that WMH SP was 190p pre Covid, there is no way this 130p share price is fair or correct.
Definitely buy at this price.

Whilst we are over 5% down. What’s going on? It seems harsh for the share price to be down because of California’s sports betting being put on the shelf, it was a tough challenge to pass a vote on this. There is no way that should have been incorporated into the share price. WMH have great capital resources to grow the company in other states of America.
This is still going to rocket, this share price is a joke. A vaccine for coronavirus will be developed this year. WMH is in a far stronger position now than pre Covid 19 when the share price was at 190p. Great trading updates, amazing about the £200m VAT refund, football and horse racing back in Europe now. This share price should be around the 180p mark right now. I’m writing to my MP about this.

They are a funny lot in America. I can’t believe that people cannot bet on sports... whilst they can go and purchase a gun on the high street. There are plenty more states in America that WMH can try to secure licences for.

It’s easy to get caught up believe the current trend of the share price is going to be the new norm - just like when the SP went from 131p to 163p recently and people claimed they could see it reaching 180p, £2, etc. Now we have suffered this prolonged down trend one may think this is where the share price will now settle.
It’s not. This is going to rocket like a North Korea missile, reaching heights you will be over the moon by.
I don’t know when the MMs will press the launch button, but it will be soon and will not stop rising to around the 190p Mark very soon. You mark my words.

I truly believe a fair current share price for WMH right now should be 180p. I won’t write an essay as to why I believe this, I have written it in my post titled ‘WMH v Flutter share price in 2020’.
What do others believe is a fair share price right now given everything we now know?

I’m sure many of you who have been following this share closely in recent months have realised that this share is a real momentum share. It doesn’t have a good day then a bad day followed by a good day, then a bad day. It either has fantastic upward momentum and does not stop rising or it has a long downward momentum and is prolonged. It has been falling for about two weeks now to a stupidly low level. Once this gains momentum which must be soon, I think it could reach 180p. There is nothing to stop this now reaching pre covid 19 levels, the trading update shows we are stronger now than pre covid at 190p. You mark my words, this is about to rocket very soon to 170 minimum. I bought in today for another £2200. Huge rises are coming.

Flutter’s share price was approx £90 a share per Covina 19. It plummeted to a low of £50.04 on March 16th. It recovered quickly to £91 a share on April 17th. On May 29th they did a share placing to raise more capital. The share price pre-placing was £106. It dropped to £103 following the placing but since then it rises steadily to £114 and now lies at £107.
Compare that to WMH. We were £1.90 and plummeted to 29p. We’ve also seen a big recovery reaching a high of £1.63 recently. The trading statement on Tuesday was excellent, only a 33% drop in revenue for the first 23 weeks of the accounting year. But given that costs were vastly reduced due to 80% of wages covered, rates rebates, overheads reduced in shops, a £200m vat refund that we had not been aware of, it’s been extremely positive. The placement of scares is also a huge positive as it enables WMH to continue its ambitions to grow.
The point I am making is that Flutter is 10-20% higher now than they were pre covid 19. We are some 30% lower than where we were pre covid. I don’t see why we are. We should be back to pre covid levels. WMH are in a far stronger position now than 3 months ago. The international growth is exciting. Cost cutting has been effectively managed. WMH is being run so well and the share price is nothing short of a joke.

I don’t agree with this at all. Fair price has to be 150p minimum.

I’m putting my neck on the line but I’m expecting the share price to open up at 150p tomorrow. The reason why being the trading statement is very positive and encouraging. The trading statement shows a big loss in retail revenue but we will have saved on all retail costs.
The £203m bond has been paid off and the VAT refund is expected to be around this amount which is far higher than first estimated.
The issuing of shares to raise capital is not really a dilution, it adds a lot more capital to the company and the board are ambitious wanting to use that money to grow the business. I like all of this news and think the share price will rise from this news.

Ok, I’ll end my posts here. I wish you all well. But think about investing in WMH, I’ll be on the message boards if you want any advice. It is a steal at the current price.

Each morning I have a read of the RNS’ of company’s releasing trading updates or interim/final results. I read the RNS dated 22/05/20 - I’m sure that would be the date I first posted here. I wrote originally to say that this share reminds me of 2 I invested in many years ago and to cut your losses. You may have to write off a big loss but it’s better to get shot and put it down to experience. But it seems many people here do not like or appreciate such advice.

I’ve never owned shares here. I came here to help people like you. Usually I only do that on comic relief by donating a few quid. I’m wasting my breath on the likes of you and vauch.