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Ok pardon my message below. So the narrative is, we are seeing industry wide consol and even Vertu is lining up deals in the pipeline. Tony sold 20% stake to Constellation early this year; why has it taken so long for them to acquire this whole thing and sale leaseback land etc? Or were they waiting for a lower base price after the rumors die out and swoop in soon.
Puking of stock seems very risk-off and understandably so. Market was positive re earnings result before puking non stop... unless i missed smt on the fundamental side of things. But populist macro policies aint bolstering the case.
Would really lik to be greedy with this but risk management...
Insiders having been purchasing a lot lately.
Strong balance sheet provides some amount of staying power.
I just don't see how this doesn't work out at some point. Fingers crossed.
Struggles are well known.. valuation is still very low and profit forecast still intact with dividend to be reinstated. Moreover as the previous comment said, online revenues is only a fraction of total sales. Don't understand why Carolyn bought stock when she did though.... or did she not think the market will react this way.
Don't see this addressed ever but how do people reconcile the accounting - Tortilla debiting COGS twice, once at the gross profit level and a second time at the OPEX level. Have a look at the filings notes and youll see it
https://www.baltictimes.com/estonia_s_online_gambling_success_story___the_history_of_playtech/
Not related but fascinating read
https://www.investegate.co.uk/article.aspx?id=20220511152200Z6301
about 1m shares at 494p
This has been one of the most outstanding companies over the last decade and at the forefront of the athleisure trend...
Most fawn over JD.com in China but JD sports has had the better TSR..
Nike has ceased their severance of partnerships with wholesale distributors...
JD now trades at a single digit EBITDA...
Difference between Card and Wrks is that Wrks balance sheet is basically squeaky clean and comps have been great last few Qs/Hs compared to Card. Also impt to note for Wrks is that mgmt used to overexpand stores, think 50 stores per annum but they mentioned in their latest annual report that they're not going to do that anymore...
Capital discipline, clean b/s and value retailers generally being more frequented in inflationary periods- this should not trade here.
But agreed, both wrks and card are good value.
This thing trades at <2x EBITDA with a respectable FCF conversion %. A good print and dividend reinstated should be a nice catalyst for the stock to return to north of 60p and perhaps 70p even... fingers crossed.
That's a nice narrative but i think in a recession, gambling volumes would take a hit regardless - 2008 fin crisis, casinos saw cc 20% revenue declines. But a software provider should be well buffered as it doesnt have the same op leverage as a b&m casino. But maybe with online gambling pervading, the impact is also dampened given the lower frictional costs to gamble i.e. don't have to travel to a casino etc.
In any case, given the current trading update, it seems like even if there is no bid, the downside should be dampened compared to last year before the whole hoo ha took place. We'll see
What's worth noting re this bid is that the headline multiple offered by Aris - 11.4x is woefully understated given that they intended to sever EBITDA streams post business review... multiple more like 13-14x. Could argue that the TTM numbers used were pandemic infected and normalized no. would be higher so multiple deserves to be lower. But in any case, a 10x on TTM numbers ending Dec 31 would still equate to a nice >£7. ..
But i'm sure the bidders all know the value of the B2B and B2C assets...