General Betting
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Noticed the share price has continued to fall since listing, now down to 938p a fall of nearly 40% since going public. Hope nobody was foolish enough to buy in at the vastly over inflated market valuation with all money going to buy out existing shareholders !!!. With their current cost base I think the future could be very difficult for Betfair and it will be interesting to see if there is any large sale of shares in the next few months.
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It' very worrying indeed tbf. I read a ort of an excuse article. Somebody partially blaimed it on the cancelled races ince the floating ffs. And as far as I remember, they did look healthy from the invetor info they presented.
Serves Betfair right for introducing the Premium Charge.
Serves betfair right for charging parasitic pc payers less than real liquidity providers.
My original post ...did anybody else go short on the spread !
[;)]
I think the valuation at £1.5b is a total joke, this company's true valuation in my opinion is significantly lower than this maybe closer to the £300m mark and that is only because they have about £150m cash in the bag. Consider the fact that their core business is still illegal in many parts of the world and their payroll is close to 2,000. Also there seems to be a big drive away from the core business of an exchange which would indicate to me that they are worried about obtaining new exchange customers.
In any event this flotation is only to allow existing shareholders to cash out...!!!! with no new shares being issued, hence no money goes into the Company. Is there some internal pressure here I wonder !!. Why would they not do a part trade sale to buy out existing shareholders rather than the listing with all the headaches that will bring in the future re reporting etc. Maybe they tried that but got no takers.
In any event anybody buying out existing equity at this type of valuation, in my opinion needs their heads examined...so as the old adage goes..BUYER BEWARE !
[;)]I think the valuation at £1.5b is a total joke, this company's true valuation in my opinion is significantly lower than this maybe closer to the £300m mark and that is only because they have about £150m cash in the bag. Consider the fact that their core business is still illegal in many parts of the world and their payroll is close to 2,000. Also there seems to be a big drive away from the core business of an exchange which would indicate to me that they are worried about obtaining new exchange customers.
In any event this flotation is only to allow existing shareholders to cash out...!!!! with no new shares being issued, hence no money goes into the Company. Is there some internal pressure here I wonder !!. Why would they not do a part trade sale to buy out existing shareholders rather than the listing with all the headaches that will bring in the future re reporting etc. Maybe they tried that but got no takers.
In any event anybody buying out existing equity at this type of valuation, in my opinion needs their heads examined...so as the old adage goes..BUYER BEWARE !
I don't get how a bit of bad weather can be cited as one of the main reasons for a share price collapse...
If that really was one of the main reasons, it would be an indication that now is the time to load up. I don't believe investors as a group could possibly be that short sighted.
The real reason is more likely to be that it is just now entering into the public consciousness that the P/E ratio wasn't justified. Betfair have certainly engaged in one or two activities aiming to keep up the impression of fast growth with short term measures, that will lead to some long term benefit, but far less than the figures suggest.
Taking PC as an example, it rakes in huge amounts, and it's good business. However, to think that this is going to continue like this is folly. Many people are moving to offset these costs. Others are moving some of their business elsewhere. It will still add to profits, but the benefits for Betfair will dwindle over time.
An interesting question: What would be the result of an increase of PC to 50%?
If that really was one of the main reasons, it would be an indication that now is the time to load up. I don't believe investors as a group could possibly be that short sighted.
The real reason is more likely to be that it is just now entering into the public consciousness that the P/E ratio wasn't justified. Betfair have certainly engaged in one or two activities aiming to keep up the impression of fast growth with short term measures, that will lead to some long term benefit, but far less than the figures suggest.
Taking PC as an example, it rakes in huge amounts, and it's good business. However, to think that this is going to continue like this is folly. Many people are moving to offset these costs. Others are moving some of their business elsewhere. It will still add to profits, but the benefits for Betfair will dwindle over time.
An interesting question: What would be the result of an increase of PC to 50%?
The result will be minimal moneywise but the damage on the image, that's something else.
Betfair should have done something about their poker client ages ago. I think that they floated just before the Senate said "fu poker". That would be another bad thing but I'm too lazy to compare this with Partygaming in order to see the realistic loss.
I genuinely believe that someone knew something that was not in the figures at the time of the float.
Betfair should have done something about their poker client ages ago. I think that they floated just before the Senate said "fu poker". That would be another bad thing but I'm too lazy to compare this with Partygaming in order to see the realistic loss.
I genuinely believe that someone knew something that was not in the figures at the time of the float.
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