Member Info for WolfofWarks

Hexam - an equity rises at current SP is out if the question. The dilution would be horrendous. Made sense over 150p. The shares would become confetti.

Correct Hexam, as usual you get it. I’d sell a minimum of 25%-50% depending on the relative value of btc at any point in time. Then when the halvings happen you would have dry powder to top up as well as meeting cash requirements without raising the debt, dilution, or at least at reduced levels. This would have worked quite nicely over the last twelve months at the high and low points.

What is happening at the moment is equivalent to spending all your wages on btc and meeting all your mortgage and bills with a credit, high interest loans and borrowing off family (us).

Yes but the debt keeps piling on. I still think the business model here has to change and there should be a commitment to selling a decent chunk of the btc mined each month in order to de-risk and strengthen the balance sheet. You cannot spend money on tick perpetually, especially when underpinned by a volatile asset, and expect it not to come back and bite you in the ass. It leaves the company extremely vulnerable.

It’s pretty basic business sense. There’s a reason this is at 63p and it isn’t showing any sign of shifting up anytime soon. In the current economic conditions btc should by thriving but instead everyone is hedging by buying commodities and gold.

1) not yet
2) the £500m equity is for the purchase along with £2.1bn debt. See RNS

“ Financing the Acquisition and capital structure

· Under the terms of the Sale and Purchase Agreement, the Acquisition has an enterprise value of £2.2 billion, which includes £0.7 billion relating to the assumption of existing WHI bonds, and £0.1 billion of IFRS-16 capitalised leases.

· In order to fund the Acquisition, 888 has obtained fully committed debt financing from J.P. Morgan, Morgan Stanley and Mediobanca of approximately £2.1 billion, which includes approximately £1.6 billion (equivalent) of term loans and approximately £500m (equivalent) of bridge loans/senior secured notes. 888 has also obtained a fully committed revolving credit facility of £150m.

· To create a more beneficial long-term capital structure, 888 expects to raise approximately £500 million of gross proceeds by issuing new equity via a capital raise ("Capital Raise") to be undertaken at an appropriate time, such that pro forma net leverage ratio is under 4x.

· The board of directors of the Company (the "Board") currently expects no changes to 888's existing dividend policy (50% of adjusted net profits) following Completion, underpinned by the future prospects of the Enlarged Group.

· The Board believes that this funding structure and dividend policy will result in an appropriate balance between delivering shareholder returns, enabling the Enlarged Group to invest in further growth and enabling the Enlarged Group to achieve an appropriate deleveraging profile.

· The Board expects the group to de-lever significantly in the medium to long-term, with a medium term target net leverage ratio of below 3x.”

3) confirmed in the analyst call that no dividend will be paid due to the acquisition

4) this acquisition will result in a much larger company - they’ve identified £100m of cost saving synergies and I believe William Hill is a world leader in the tech side so they are in the process of integrating the two platforms currently. How long this takes to pull through to the SP is any bodies guess.

Bailie Gifford US growth was the fund that had the big stake in Tesla iirc.

I think he might have multiple personality disorder.

I brought it as a long term EV play in June.

I’m 60% up already!

That’ll teach him for buying her a Primark bath bomb for Xmas.

Glencore is my biggest position at the moment.

Absolutely flying.

Bit of half decent news and he’s done one. Or has he been redeployed to another board?

Maybe after seeing his beloved ABF fall through the floor like a growth stock he’s decided to buy some premium bonds?

Yes but what about the HODL policy?

Where is the cash going to come from to make all these ever increasing debt and finance repayments?

The current SP makes dilution pretty much impossible without obliterating existing shareholders.

The market had definitely prices in disaster.

It’s important what it does from here now though.

If it starts resuming the downward trend then we are nowhere near the bottom.

I don’t think the macro downtrend is anywhere near done yet.

Squid.

That’s why investors focus on EBITDA and cash flow rather than net profit and non cash costs though right?

They can’t ‘figure out the supply chain’.

It is what it is unless we have a way of magicing up a factory or stock to the USA.

They said in the last update that they were looking to expedite the US NDC but it wasn’t a pledge of any sort.

Many where predicting a cash raise remember!!

In the grand scheme of things. The problem area around Xmas was the uncertainty on ROW sales which have gone back into growth. Not B2C though but through wholesale channels. Which means there is further recovery in the pipeline.

Blows Dan and Kallu’s thesis out if the water.

UK business remains the engine and is robust.

It’ll be interesting to see how this goes today and whether we might start seeing a bottom developing soon. It’s going to be a tough six months for H1 though.

The only problem with the US market is the eye watering cost of customer acquisition.

Companies like Draftkings are spending so much money on marketing they are struggling to actually make any money.

I'm holding for now until more details around the William Hill acquisition are released.

I was mulling over adding during the dip and am kicking myself now!

For me outside the commodities this is one of the safest places to be in at the minute.

I dont think the trading update will affect the SP.

Ted Baker had a good update - up then straight back down.

Russia is the main factor in SP movements across all stocks at the moment.

Kallu’s view has largely been validated by the macro conditions and the war rather than him actually being right with his thesis. The trading results this week will tell a lot, although I don’t expect much from them until the supply constraints ease.

If you look at last weeks action most of the value stocks have been battered. ABF is 20% off it’s recent ALT and 32% off it’s 12 month high.

I’ve actually exited out of most of my growth stocks for the time being and gone defensive. Too much uncertainty out there at the minute for them to recover. When this all turns round though there’s going to be some decent bargains about.