Betfair share price.

it got down to nearly 750p last week....

back up to 835p this mornin--nearly 5%

back up to 835p this mornin--nearly 5%

Thats about £6.68 once you take the Premium Charge out

Looking at the TA for Betfair , I think that we could see a mini collapse of the share price[835]

Betfair share price has now dropped to 733 , I hope that you took the advice of my original post [;)]

Is there a "sensible" price target based on p/e? Or in other words when does it become a buy?

I'd consider a speculative buy if it went much below £5 (as that would be an accurate price). Seems unlikely to happen for the forseeable future due to mugs still keeping it high and refusing to accept a massive loss.

Through the 700 barrier.

Looks like this is heading South.....lol It must be people realising that this tax will cost Betfair more than they will make. The Purple sites numbers have increased quite steady over the last 10 days or so.

Going towards fiver

Good.....robbing *&^%$£"

cant understand why anyone would touch betfair shares with a bargepole, horrible charts and lets face it, the primary reason they floated was to let existing shareholders cash in. they certainly didnt need any money so were purely trying to get the best price possible for shareholders exit(imo). still on a ridiculous p/e and ambitious to say the least growth forecasts. i suspect betfair will grow profits but their problem is that they need to grow them too much to get that p/e down before people realise its not the growth industry they were "hyped" to believe. even at these lowly levels they are a sell imo.

it s clearly going one direction at the moment, but a couple of pts

dont look at the pe only, if the company has 200million in cash, it means the 1st 2 pound of its share price are just the value of cash. you ll realize their pe is down to low 10s after this exercise.

they just announced they re going to spend 50mill of this cash to buy back shares from the market, for cancellation. i give you a clue, the main sharehlders ( wray, black ) are still tied in and couldnt sell more than 10pct of their holding. someone was calculating that only 15mill shares were actually sold on ipo, which means that at these prices betfair is about to collapse the amount of shares in circulation ( in other words, they re taking it semi private again ), so watch out for the short squeeze.

3 days ago the chairman just bought 1.2mion pound worth of stock. the argument they wanted just to cash in doesnt really make sense then.
the only reason they floated was -allegedly- to get a better profile in america for when they need to apply for licenses overthere.

having said that, they could do with some more investments in products ( poker and financials for exmaple seem to go nowhere ) if they want to deliver strong results.

At last an informed comment by somebody who understands market mechanics.
I wouldn't buy into this share, simply because it is being too manipulated by controlling vested interests, into which I have no privileged entree.

johhnie,

some well made points there, albeit the share price continues to tumble, down about 12% or so since my last post. the one thing that i'd query about your post is the (seemingly to me anyway) contradiction about them floating to get a better profile for their attempt to break into the US whilst now they are buying back with a view on taking the company "semi private" again. i may be slightly sceptical about the reasons they floated but lets face it, its not just about wray and black, there were plenty other guys chipped in with their £25k's at the beginning, and of course softbank as well. they all needed to get some cash back out of it some way or other.