Up nearlly 15% today and I beleive there could be more to come.

Evil Knievil has tipped it on EvilCast and has bought in 100,000 worth of stock a notifiable interest. He rates the management very highly and says they are attracting all the big bookmakers to the online casino site including punters the likes of William Hill, Chandler, and Ladbrokes. The company are now running at a profit every month and should break into a yearly profit from the years previous loss very soon. The company also ownes in partnership with a Swiss firm Boss another casino site and by all accounts that is doing well.

Im looking at this one as a momentum play pretty high risk as there are competitors out there but I feel the management will give it the edge.

Please DYOR, and remember you are responsible for your own buying and selling actions.

cheers GF.

This share has had a rough ride over the last few days, but where is the company after the share issue.
We are not yet aware who has stumped up the 10m.
A view is that the share liquidity was very tight, thus the sale by Directors. Comments have been made "nice for them", but is the reason they were forced to sell to provide the liquidity by the providers of the new capital ?
Where are we now ?. The company has 10m cash, why do they need it?.
Developement or acquisition ? Would the existing shareholders have provide 10m from a rights issue?
Something is about to happen here - sit tight fellas, hang onto you hats and let's see, it could be exciting.
Very minority shareholder.
Predateur

Did anyone notice my post No 334 yesterday about ELA on this site. ELA now doing better than GMC, up 160% already this morning.
sd.

Sorry, misprint on Stockwatch following overnight trading in NY: now only 1.6% but perhaps still worht watching.

Got this from the other place. A must read if you hold, especially long term.

Hi,

The Stockmarket Reporter today wrote of Gaming Corporation (GMC)

Shares in Gaming Corporation added 0.88p to 15.75p after it announced that it had conditionally placed 71.5 million new ordinary shares at 14p pence a share to raise approximately 10 million pounds before expenses. It said that due to strong institutional demand and to further increase liquidity in the Company's shares just under 30.5 million ordinary shares are being placed on behalf of existing shareholders, which will reduce management shareholdings by approximately 50%., Jason Drummond and Justin Drummond have now signed lock-in undertakings restricting the
sale of further shares or warrants by themselves for a period of 12 months. UK-Analyst.com is a little confused, however, as many of the supporters of the share have used the fact that the company is so cash generative as one of their main tenet of their arguments. If the company is so cash generate why does it need to pass the hat around? And if the prospects are so bright why are the Drummond's lobbing out so many shares now?
--------------------------------------------------------------------------------------------------

In response to the confusion about Gaming Corporation from The Stockmarket Reporter I thought it worth proving some answers to the questions.

Firstly, Gaming Corporation is looking to strengthen its business through both organic and acquisitive growth. In order to acquire other online gaming operations having a war-chest of cash is a significant advantage. Last year it looked at several potential acquisitions but talks fell through. Now however the company has plenty of cash through which to acquire suitable targets. I think that it is better to raise equity at 14p/share ensuring the company has over 10 million through which to expand the business, than to issue paper for an acquisition.

As a shareholder I would prefer any company to acquire a company through cash, and not paper. Cash is king and will ensure that Gaming Corp is in a stronger position through which to negotiate acquisitions than before. In its announcement today the company iterates this point, saying the cash, amongst other areas, will be used for appropriate acquisitions in the poker and casino areas.

I think that raising 10 million is excellent! Prior to this placing cash, at todays closing price of 15.75p, represented c.4.8% of the companys market capitalisation, equivalent to 0.75p/share. Post placing cash will represent 27% of the market cap, equivalent to 4.28p/share. Therefore, what is better? For cash to represent under 5% of a market cap, or to represent c.27% of a market cap? Simple really. I have been informed that the company is throwing off cash, but even so, with a war-chest of cash it is now in a far better position to be a predator rather than the prey.

Why are the Drummonds lobbing out so many shares now? It is not just the Drummonds who are lobbing shares out now, but all the directors. It is common practice for directors to place their shares with institutions to satisfy demand. In addition it enables an exit point for the Drummonds who have worked exceptionally hard in building this business over the past four years. Furthermore the agreement does not prohibit the Drummonds purchasing shares in the market over the ensuing twelve months, only from selling.

Although UK-Analyst might be a little confused about the decision to strengthen the balance sheet, clearly the institutions are not. They see the vast potential for online gaming, and their commitment to hand over 10 million is a further endorsement of this belief.

So, to conclude, what looks the more attractive investment? Gaming Corporation at 15.75p with cash backing of 0.75p/share, equivalent to c.4.8% of the market cap or Gaming Corporation at 15.75p with cash backing of 4.28p/share equivalent to c.27% of the market cap at todays closing price? Im not in the slightest bit confused as to what is the more attractive investment; in fact, I think its crystal clear!

Best Wishes,

Mr K

LOL

MS

Announcement today:

Gaming Corporation PLC

The Company announces that 1,000,000 new ordinary shares have
been issued and allotted to Lance Leman on 28 February 2005
following the exercise of 1,000,000 warrants on 17 February
2005 at the exercise price of 2p per share.

Contact:
Charles Black
020 7618 9000

Postive write up in IC this week with Results summary - rates the company as a good bet in this sector and a BUY

1 by Christmas!!

MS

1 by Christmas 2024 probably!

Yea, know what you mean.

MS

I wonder if internet sites ever suffer from high roller successes or bad debt,as did Stanley Leisure and London Clubs,last year.Are they protected from bad debts by their membership rules and membership fees?How can they estimate future profits if the calculations are based on gambler's luck?
Not trying to put this down,am seriously interested in buying some of these if I feel sure of certain facts.
I agree with you,Mickeyskint.
Ethel

I was sitting in a library in Chichester having purchased 1 hour of computer time and was busy trying to answer jimmyb's question to me personally about the real value of GMC. It gave me a message that I had 1 minute left which took some getting rid of - in fact, by the time I had got rid of it time was up and my answer was lost! lol!

Back home now, I see there have been some very good questions asked. Super point I read recently that it is more important to ask good questions than give good answers! A successful scientist was asked why he had become a scientist rather than a lawyer, accountant or doctor. He answered that, whereas his friends' parents always asked whether they had answered the questions well, his Mum asked whether he had asked any good questions today! As a result he had become a Scientist. I like that!

wrt GMC, the questions posed can't be answered with any precision, can they? mickeyskint's post was very good: what it does is put forward a proposition which makes sense of the facts available. ethel's question is more factual, i.e. what about bad debt protection?: income is made up of a multiplicity of relatively small stakes and income from 'clicks', so the variance from probability is likely to be negligible. The other question that one can answer with some confidence is 'why did the Drummonds sell'? OK, to create more liquidity is part of their stated justification, but the share issue did that anyway. My answer is that they are gamblers at heart and wanted to cash some of their chips! So Justin realises 1million whilst he has warrants to an equivalent value to keep a significant stake on the table! Jolly sensible and just how I have handled SEO, for instance (didn't get in low enough with GMC, unfortunately). The other question which may be answerable is that relating to MM games. They make decisions based on what we can see, in this case, far more buys and sells, and their own positions: stock in hand and, I suspect significantly, their knowledge of guaranteed postions and large trades (etc.?). Quite reasonable that they should also want to shake the trees. What I observed is that they were more successful in shaking out sales by taking the price off its uptrend than they had been by increasing it in the first place! Sounds eminently sensible tactics, although I would like to know more about the theories they are practising.

The 'unanswerable' questions relate to future sp (when over 20p again?) and real worth of the company. Because it is a gambling-based company they are making gambles with the cash they have called down, e.g. acquisitions. How well will they use their funds? I expect they will be weighing their actions right now. How well are their existing stakes going; the casino site and the new poker portal? What is competition doing? What about the US market now they have a Canadian based advisor. What we can say is that there is now a good support level in place at 14p; that they are generating cash; that they have the top casino portal according to hitwise; that there is institutional demand at 14p. That says to me that they are a sound bet at 15.5p with limited downside and potential of very good upside; moreover Evil K is long in them (he is normally shorting my investments!). Not a 'safe' investment to lock away, but an exciting ride and could be a multi-bagger from here. My stake at 25% of my portfolio (via CFDs) is the highest risk element in my portfolio but I anticipate it will also be the biggest winner (there's a challenge for you, SEO). Hope this helps.

Eric

In for another 9900 pounds at 15.5p now holding 405858 shares at average 15.535p 63 thousand pounds worth
be patient everyone the rise will come .

I hope so.

MS

the moneys in place now just waiting for the ride to start again. 10 million pounds can burn an hole in your pocket aquisition or expansion soon id say

sharewinners

I think they know exactly where the money is going. I wouldn't be surprised if it's not already spent. I could just do with 10 mil. I'd have the rust spots done on the car. Any predictions for the sp say 6 months?

MS

45-55p is my guess in 6 months time but thats conservative my minimum

Now that would be nice.

MS

its not going below 14p the institutions will just snap them up at that price they already have 10 million pounds worth they will want atleast a bagger before they part with any that puts us on 28p with news thrown in aquisition or expansion another 15p+

Institutions paid 110p for BPRG,it didnt stop the share from falling to 60p in a very short period.I hope they do move up from here,there is supposed to be news this week.

Lymington: In case you are from Lymington, the next meeting of the investors club is on Wednesday 16th March at 7:30pm at the community centre. All welcome and you will find at least one other GMC investor there.
sd.