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ForeverNever, I’m genuinely curious what fair value you’d put on 888. Current mcap £319m obviously too high for your liking but where would you like the price to be right now, based on all the risk factors you perceive?
Why should it be valued at more than current market cap? £1.8 billion revenue with 20% adjusted ebitda margin. Deduct £170m debt internet payments and you’re valuing it at less than 2x adjusted profit. Maybe you should give up
Hardboy, I have to agree. Interesting though how after the price crashes some speculators take the opportunity to compound investor fear by severely criticising other aspects of the company such as their debt situation, business strategy and exposure to UK regulation.
£305 to £315 million adjusted EBITDA for the full year 2022 according to the trading update from January 13th and liquidity of £320 million, will easily cover this year’s £170m interest on their debt
I bought back in today (last bought at 68p and sold around £1). It’s not as undervalued as 888 but probably less risky for a longterm hold imo
From August 2022 but still relevant I think:
https://www.fitchratings.com/research/corporate-finance/fitch-assigns-888-final-bb-idr-outlook-negative-25-08-2022
I think from the last trading update some of 888’s rating sensitivity factors are actually looking more positive.
Honestly no idea where the price will be at 4.30pm but I’m invested in 888 because I believe it’s a deeply undervalued company. I’m not here just for the recovery play and would urge caution to anyone who is.
A key policy adviser to the government, in his own words “aware of the conflicts surrounding the industry which needed to be changed for the better ahead of the Gambling Review.” Must help a bit, no?
Do you have an opinion on Lord Mendelsohn’s role at 888? His background in politics as Labour’s key policy advisor, with a reputation to maintain and chairman for nearly two years. Surely he’s the right man to be navigating 888 through this crisis?