Member Info for Splice

I can't help but think that the mass riots and 'wave 2' are related. It's going to be hard to convince people to social distance after that

This is s high beta stock. Beta of 1 moves with the UK index.
Below 1 moves inverse to the index, above 1 moves with the index but it's more volatile. This stock is 1.77 beta. It is correlated to the FTSE but moves with more volatility. Down moves and up moves are accentuated. The good news is that any positivity will be reflected in wmh was a bigger upside move also.

Chart:
https://finance.yahoo.com/chart/WMH.L#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%3D

It isn't 128m in bets.

It's: 2.3b in bets from memory
128m in revenue (wmh winnings)
1m in profit (wmh winnings minus expenses. I haven't looked this up will take your figure)

The profit includes their fixed and variable costs. As they scale more bets and revenue the profit margin rises because the fixed costs stay the same. Its a growth business, I would ignore the profit figure and look for top line revenue growth in the USA. They can drive down costs later, it's a land rush scenario right now and they just need to maintain market share and build the brand in the USA. Will be nice to see them operating in 50 Caesars locations in the near future (el Dorado/ Caesars deal closes in July I suspect). Covid19 is a problem in the USA right now, but it won't be forever. Watch for news of phase III vaccine trials taking place in Brazil in july, I can think of three off the top of my head.

They are saying that out of 2.6b bet, wmh 'won' 126m. Only wmh's winnings are revenue. From an accounting perspective the amount wagered isn't really reported in financial reports as far as I can see, but they do seem to report customer deposits.

Think of the wmh winnings as revenue and then take out all the other costs to get profit.

Regulatory delays in Indiana have pushed back the merger date, at least until late July.

With earlier meetings canceled due to the COVID-19 pandemic, the Indiana Gaming Commission just said they have chosen July 10 as the date when the proposed merger will be considered. The deal currently can't close until the Indiana Gaming Commission, the gaming commissions of New Jersey and Nevada, and the Federal Trade Commission (FTC) all provide their approval.

From what I've read, the market expects the deal to happen. Typically if one of the group's listed above doesn't like a part of the deal (usually to to competition issues), the acquirer will agree to divest some of the assets to get it through. I believe this deal happens with no changes in July after approval by all regulatory bodies.

You could argue that no sports betting in California is bullish for WMH operations in Nevada. This is where they are strongest and have been since 2011. Californian sports betting could have detracted from this.

Some people who bit into the capital raise wanted a fast profit and will be selling into any strength. I expect this to last a week. Fundamentals etc won't change this until those short term holders are cleared out.

I just want to see high volumes and a slowly rising share price here. Once the overhang is gone, the share can resume it's trend

Looks like the price drop here down to 129 is people taking profits after getting their share placement. 224m shares issued. Average total volume of wmh traded daily is 9m. Hard to say how long it lasts but if a quarter of the buyers are short term scalpers, could be two weeks to see them off at average volume.

SPD, do they havean rns about it on the Lloyds site? Maybe hadn't updated here

The 'placement of scares' will hit accounts today and tomorrow. Share price is still holding up. Some of those will sell and take a quick profit I guess. I'll re-evaluate at 180-200, I've sold out too early on and uptrend and left money on the table before. I really want to see a transaction here with bet Fred that makes that decision for me.

Doing great, nobody likes desperation shilling

Can you stop shilling webis, this is the wrong forum for that.

Fred, was that you mate?

It rallied to 142.5 today. Probably short term trading around the capital raising

200p Overweight

JP Morgan, in a note, highlighted that the placing took advantage of a share price recovery from the March low of 37p.

The funds will allow the company to meet investment requirements in the US and cures its leverage problem ahead of looming regulatory threats, in the UK.

“In our view, the £224m of gross proceeds from this week’s placing relax the constraints on William Hill’s ability to chase the US sports betting (and gaming) opportunity, and bring down the uncomfortably high leverage,” analyst Ted Nyhan said.

“We believe the new capital structure is capable of absorbing a possible regulatory shock (e.g. the potential imposition of £2 online slots stake limits from April 2021) and weakness in the UK Retail estate.”

JP Morgan upgraded its rating to ‘overweight’ from ‘neutral’ and lifted its price target to 200p, from 160p.

Other ratings:
Cannacord 110p
Deutsche Bank 120p
HSBC 230p
Berenberg 150p
Jeffries 305p

We aren't the people you need to convince on this, I suggest you share this with your local MP

Cannacord 110p based on speculation that the USA implementation will not go well (they've been in Vegas since 2012 I believe) and also new harsher laws on UK gambling.

In April cannacord had 88p

Other ratings:
Deutsche Bank 120p
HSBC 230p
Berenberg 150p
Jeffries 305p

LUFC, I really think the bookies are collectively doing a good job getting out in front of this and making an effort to police themselves as much as possible. No idea what happens here or what the impact will be. I've laid out my understanding of impact on revenue. Imagine banning gambling ads and the impact on sports teams

Can you post a link?

This possible change to £2 bet limits affects only online casino revenue in the UK. Online is 47% of revenue. Casino is 58% of online revenue. Online revenue splits 65% to the UK Vs rest of world.

I see online casino UK revenue as about 17% of revenue in 2019. If that legislation gets through forcing £2 limits it will obviously affect that 17%. How much it impacts online casino is hard to tell. Keep in mind that UK online casino will shrink as a portion of total revenue as wmh becomes increasingly focused on the USA market.

Have a look at 888 holdings, they are heavily reliant on online casino and are trading above January levels.