Member Info for Myfairlady

Well good luck. I'm in the industry and haven't heard it but doesn't mean you're not correct - it's always seemed odd to me that Teddy Sagi, one of the most acquisitive guys in the industry has owned almost a third of the business and yet never bought it outright. As I say for me it depends on how their H1s are looking as most small gaming companies are struggling a bit with POCT.

Sunshine - the results were in April, and doubt the interims will be out for some time unless you know differently. You imply that you have heard that results will be good - the big question for Netplay and other small gaming companies is how they deal with the 15% POCT which would have wiped out last year's EBITDA. What have you heard? It's a good sign that the NED bought but I am really interested to know how they've done in H1 as I know other larger gaming companies have kept their marketing spend up and soaked up the POCT themselves. NPT will struggle to do the same. I agree that the cash balance is a strength. As far as M&A is concerned, 50p is totally unrealistic!

I'm presuming people will still be able to trade on ASX though and the deal price looks ok when compared to current market cap.

Selling asset and trading on ASX only

No comment on the after hours announcement of cancellation from AIM?

Wow - an emergency placing at 14p as they ran out of cash to repay the lender - surprised it has only dropped 14%!

Interesting AGM tomorrow - anyone going? Issue now is that unless renewals and new contracts are announced tomorrow or imminently, they're going to need to raise a few hundred grand to keep going just like last year but at what price - 0.15 or 0.1 - difficult to get away much higher as not easy to forward sell at a profit otherwise and that's the only people they'll be able to raise money from. Maybe today's 3m sell was someone planning ahead? They need some positive news tomorrow to lift share price somehow otherwise difficult times (and significant dilution) ahead

Fair enough smudgedan - my investment strategy is slightly more risk - averse, although only slightly as this is AIM after all. For the moment I'm going to sit on the sidelines so may miss out slightly but I have decided to invest a small amount elsewhere in a stock that it seems you míght be invested in as well from the look of the board - BOX

Oh I see, yes the write off of the debt creates an accounting gain. Am going to follow closely as any positive noises about the refinancing or the operational performance will be a reason to buy here although not much downside at this level in any event

I'm doing a bit of research here as an £83 rev business with such a low mc could be an opportunity Smudge - I think the position in 2014 is now largely irrelevant particularly as AIB have just taken a £3m haircut on their loan. I think there is upside here if they can get their finance sorted particularly if they can do it without resorting to equity but raising £9m new debt won't be straightforward as they seem to be stressing the fact that the US business may not be as profitable this year. The tax credit is potentially significant though - where did you see reference to that?

....and then the CFO resigns!

Not sure if you mean me but if you look through my posts here on this share, I think there is opportunity here. Looks like this will be a profitable business in a growth area so depends on execution and appetite of those at the top. Don't see it doubling overnight but if they can continue to grow revenues at the same rate at reasonable margins, the sp will look after itself. A bit different now to some other aim investments in my view.

Steveho - agreed - it was 2 when I started drafting the response but has dropped since. I was taking issue with the 0.11 in old money point though

Preemo - 2 divided by 11 is about 0.18 not 0.11 so no drop. Kabaa - I was surprised by the significant margin fall here. I sense Tintin has a better grasp of the business model here than me so interested in his thoughts. Nevertheless, it makes profit and it's all about growth from here so will be interested in GIS quarterly updates, if they continue but they will have to cover a bit of additional Aim cost in the short term so any bottom line growth would be good in the next 6 months. The dividend is odd. Not that many aim investors are looking for yield but want capital gain instead. I would rather they spend the cash on growing this to a £100m revenue business not worrying about a distribution. It will inevitable end up being a stick that some people want to hit them with.

Think it looks very good - nice analysis. A refreshing change for these bulletin boards! A couple of comments. I would prefer to use future growth than historic for the PEG but with the growth coming in the last two quarters, this doesn't look over-optimistic. Assuming your year-end profit is right, I make the PE slightly lower as the combined business does have some other assets / investments too, although less than £2m, which I would deduct from the market cap before calculating the PE relevant to GIS which would make the PEG higher and therefore the potential target sp higher. The one thing I don't quite get here is why the GIS shareholders have gone down this RTO route and given such a chunk of value away to OCT shareholders so I remain cagey for the moment pending the next couple of quarters announcements but nevertheless I think it is a buy at the current price

Tintin, I saw this the other day and the profit looks sensible; I actually thought it might be slightly higher but how did you get to 0.34p share price - do you mind sharing the calc?

Flashy - placing price is 2p or 0.1818 pre-consolidation Madchatter - consolidation isn't that relevant - at 0.18, market cap will be £11m so depends on your view of value of GIS and sundry other small investments

Well that's one way of looking at it but it over complicates matters and ignores the impact of the new placing shares. Simpler just to look at the new number of shares and divide that into £11.2m

No - the £11.2m MC is based on 2p new money or 0.1818p in old money

To be clear I'm not saying that the positive evaluations are unlikely just the fact of the contracts starting immediately!