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.

Some big buys going through today a lot of activity.

MS

Some big sells aswell !!!!

Looks like we could be on our way. 23p here we come. Some of he big sells yesterday were buys.

MS

Back to square one than, LOL!

Well done Mickey for keeping everyone updated. Phew this has to be the most frustrating share ever but I still feel it will be worth the wait in end..lots of patience needed but the price has to rocket eventually IMHO DYOR etc.
Di

I agree Di. I've been tempted to bail out several times but hung on in. Our patience will be rewarded I'm sure. It's also worth remembering even at todays price this share is a 5 bagger in 1 year and did hit 22p making it a 10 bagger.

LOL

MS

That's great Mickeyskint but I got in at 14p and 22p is no good unless you sold at that price. I am just glad I didn't get in at 22p ...I just couldn't see it going further so waited for it to go down to get in....now I would like some upside as I have waited quite some time now.
Di

Di

I talked my wife into buying at 19p well you can just imagine what my life's been like for the past few months. I think there is something going on behind the scene and I'm sure that the Drummond Bros won't let this go cheap. Rumour has it that PRTY are having a look, we'll just have to wait and see.

LOL

MS

Updated forecasts from the other side:

Broker Forecasts (pre-tax 2006 / 2007):
- Dawnay Day Townsley 06-03-06 - 3.20m / 6.00m
- Canaccord (house broker) 24-02-06 - 3.20m / 6.27m
- Teather & Greenwood 29-11-05 - 3.70m / 4.90m
- Arbuthnot Securities 20-10-05 - 3.14m / 6.23m

Well at least the forcasts are moving in the right direction. It's a pity the sp isn't, but I'm sure it will.

LOL

MS

Yes, one day. I think the Teather forecast for 2007 is after tax, whilst the others are all pre-tax. I'm not totally sure, but I think they are all very similar in 2007. That is, they all are looking at about 6 million pre-tax and 5 million after tax. If they do that well then the company could easily be 40p plus in two years time.

From the oyher side. A must read.

scotty1 - 8 Mar'06 - 08:48 - 18408 of 18410


From uk analyst this morn.

Buy Gaming Corp at 11p
Says Luke Heron of WatsHot.com
Click here to see a NEW LOOK WatsHot.com

Gaming Corp released a very positive trading statement indeed on . The group, which owns the leading portals, gambling.com and casino.co.uk, said that the first quarter of 2006 had seen continued strong trading across the group, generating first quarter pre-tax profits materially ahead of those reported for the whole of the year to 30th September - i.e. more than 700,000 pounds. Not shabby at all. Management has intimated its confidence in, at least, meeting full year targets.

The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Watshot.com is owned by t1ps.com Ltd which is authorised and regulated by the FSA and can be contacted at 49 Rivington St, London EC2A 3QB or on 0207 033 9389

Gambling.com has continued to make a strong contribution to group profitability and during the first quarter there has been continued upward pressure on the cost per click advertising rates. The advertising base has continued to grow with over 1,000 casino and poker sites now listed on the Gambling.com search network. Search syndication where the gambling.com search technology is imbedded in 3rd party gambling portals is starting to gain traction and this should be an area of considerable growth during 2006. Casino.co.uk has experienced further quarter on quarter growth and has benefited from additional search based revenue through a search syndication deal with Gambling.com.

Meanwhile, Eyeconomy, the online media sales division continues to perform strongly and has assisted the group in growing the portal network and existing gaming operations through targeted advertising campaigns and strategic advice. The mobile gaming division launched with Orange UK continues to gain traction having signed up over 7,000 registered customers during the initial launch phase. As Orange UK intensifies their marketing effort I imagine that we will see further growth in this division. Elsewhere, there are advanced negotiations with a number of network operators in the UK and Europe with a view to replicating the success it has experienced with Orange in the UK. Gaming Corp has continued to make significant progress since the start of the 2006 financial year. The business is now experiencing profitable growth and generates significant levels of free cash flow. With cash of circa 4 million pounds in the kitty and no debt, this profitable gaming operation remains considerably undervalued at 11p. "Buy".

This piece is an extract from Luke's Daily Offering on Watshot.com. To access the entire tip and read a detailed analysis on Gaming Corp, sign up to Watshot.com by clicking here.



Key Data

EPIC: GMC
Price: 10.75 - 11.25p
Market : AIM

Luke Heron edits the small cap share trading site www.WatsHot.com. It costs as little as 73 pounds a year to access tips from Luke Heron on the site. For more details click here.

Another interesting post from the other side.

shaz247 - 8 Mar'06 - 16:21 - 18427 of 18428


Whilst many people focus on gambling.com as GMC's money machine and the fact that it now lists over 1000 different brands i would like to point out that casino.co.uk and findpoker.com seem to be firing on all cylinders at the moment. It was mentioned in the trading statement that casino.co.uk has experienced growth from the same period last year but i believe growth could be even more significant.

Casino.co.uk and Findpoker.com now advertise more brands than at any time before in their history and because this space is considered so lucrative and the fact that only so many brands can be displayed at any one time i am of the belief that pay per click rates, currently 2.50, are due for an upward revision to say 3.50.

That would indeed have a huge upward effect on profits at GMC...

the analyst - 8 Mar'06 - 16:27 - 18428 of 18428


I agree shaz. From the trading statement it looks like advertisers can now bid for space on casino.co.uk which is likely to really improve the cash flow. I've noticed when clicking on a banner on casino.co.uk it does now go through a gambling.com link first. This is a big step forward in my opinion and I wonder what these big sites will bid for prime spots on the page?

In light of todays news I thought this might be of interest. From the other side.

KeithFagan - 9 Mar'06 - 09:17 - 18449 of 18449


Stungry. The laws governing Gambling advertising are so vague when it comes to the on-line world I have no doubt this is designed to circumvent them. As it is a private members only publication it falls under the same rules as that for Casinos. In this a Casino is allowed to advertise itself to its members but not allowed to have marketing materials that are aimed at obtaining new players from outside of this network.

The rules pertaining to advertising per se for any casino are also vague. Whereas you can "Sponsor" as a site (just look at 888.com) you cannot advertise the games or "Entice people to gamble" in a direct manner. Also you can advertise if the Casino/Site is not in this country but, again, only as an enticement to visit as an entertainment. The major sites have stretched the rules to breaking point and due to the slow implementation of the new Gambling Bill the controlling bodies are in a state of confusion.

There is still a huge issue over this and DCMS are reviewing all the advertising rules over the next 6 months to produce more definitive guidelines.

High Rollers are the cream of the business and Casinos of any type will pay good money to entice them to their tables. In this I view the introduction of this magazine as incredibly innovative and will try and obtain a copy to see what it looks like.

I wonder if this can hold on to todays gains for a change?

Would be nice DB but if track record has anything to do with it then I doubt it. But we can hope, remember this is no longer a blue sky play and profits are coming in. So we should be heading for the level the institutions came in at which was 14p. We might have to wait untill may when the interims should be out, which I feel sure will show a substantial hike in profits.

LOL
MS

These are excellent posts, a must read. This boy is good.

the analyst - 27 Mar'06 - 23:30 - 18683 of 18698


OK, so heres summary part 1.

Firstly, read through the accounts in a bit more detail. Noted that Justin Drummond earned 182,000 in salary/bonus in 2004 and 219,000 last year, whilst reducing his holdings down from over 8,000,000 shares to 250,000 shares since the beginning of 2005, getting 14p per share for those he sold. Wow!

I guess the directors need to complete another deal before year end or they may not be able to award themselves astronomical bonuses again this year!

Also noted that gambling.com made $1.2m net profit in the five months after acquisition from May Sept 2005 (although a mistake in the accounts makes it look like 2004, it is in fact the 2005 figures). That compares with $558k net profit in the four months before acquisition from Jan April 2005. Gives some idea of the progress that has been made there. Really very impressive imo.

Jason Drummond was not present at the AGM as he was recovering from an operation, so was included via a speaker-phone in the middle of the table. Tea lady provided something wet and warm on arrival for those wishing to dunk their hobnobs. A real mix of people in the meeting, a couple of the private investors were city boys, which is interesting. One or two investors were not even aware of the recent announcement as the company had not sent it out to those on the register.

All votes went through. Nothing out of the ordinary was voted on, just re-elections. No new shares were issued which is not surprising as there are currently over 500 million 1p ords authorized but not allotted as compared to 30 million authorized but not allotted in 2004. Thus, it seems the company might be able to raise 50-60m without too much trouble (i.e without issuing more shares) as it stands just by allotting the already issued shares in a placing.

Will post about the meeting content itself in the next post....


the analyst - 27 Mar'06 - 23:53 - 18684 of 18698


Part 2

Anyone else that went to the AGM please fill in any gaps, or add things I missed out (Ive missed a lot out I know) and correct any mistakes Ive made. I can then re-post a corrected version with a link to it in the header for anyone that would like an update on the AGM discussion.

Current trading:
They said they were conifdent of meeting broker estimates of 3.3m for the year. I got the impression that they are hopeful that they will exceed forecasts. They stated again that the company is highly cash-generative and has cash in the bank. They stated that they might do something with the cash, but that point was not expanded upon.

Gambling laws
The new laws regarding advertising content was discussed. Justin knew of the new laws and he thought that it would not adversely affect GMC. In fact, he thought that if anything, it could be good for business, as it would create a level playing field. Basically, the law affects the wording that can be used in the adverts in the UK. It will be interesting to see if/how adverts change on the portals and magazine in the future.

Mobile Gambling
Mobile gambling was questioned a few times. They mentioned that there has been a recent uplift in registrations over the last month and a figure of 7000 was initially given, as had been stated in the accounts. Jason then gave newer figures of 8000 customers, then changed his mind and upgraded that figure to over 9000, then between 9 and 10 thousand. They didnt seem to know the exact figures, but it looks good. Justin mentioned that Orange had now started to promote the casino more actively. He then went on to say how initially they had a problem with Orange not promoting it, but now they have proved the model and so the network is more comfortable with the product. The back-end system is the main reason for this, especially the age identification, but also payments and security. Justin stated that they take 50% of net revenue from the deal and that they thought the profit coming through was now significant for the business. Each player was spending 50pm at the beginning of the year, but they had no figures for more recent times. Revenue per customer was far outstripping estimates and was more in-line with online gambling. They said this had come as an unexpected and welcome surprise.

Asked whether players that originally signed-up had stayed with the casino, they said they are the only company in the UK so customers are in effect forced to stay with them. Im not sure if that answered the question. I think they probably mean that they are the only company to have a deal with a network rather than the only company in the UK. A potential deal with a European network was mentioned although it was not possible to determine how advanced the negotiations were. They thought they would get more revenue share from this potential deal than the 50% with Orange UK. They also mentioned that they have a lot of success in expanding the game range and importantly, the number of phones supported (each game must be able to work on over 80 phones). The mobile business was in development for 2.5 years before coming to market apparently. They talked at some length about the mobile offering although that is all I can recall at the moment. I think the emphasis given to mobile gaming reflects their enthusiasm for the product.

Share price
Share price was asked about on a number of occasions. Many were very concerned about the share price. Others were more interested in the progress of the company. As would be expected, Jason said he was thought it was very much undervalued. Mentioned that there are 5 brokers following GMC and they have buy notes out. Said that they valued GMC at 20p or more. They were obviously disappointed with the price performance. Jason said that from his experience you cant keep a share price down forever if it is performing well and thinks that news in the next few months or perhaps over the next year will see a re-rating of the stock. When asked about potential bids, he said they would consider them. He did not say he would prefer to grow the company himself as many directors often do when given the same question.

Director buys
Why are directors were not buying? They did not really answer the question. They stated that both Julian and Justin were major shareholders and implied that they could not buy because they are so close to new deals being made - i.e. that they know too much to be able to buy without breaking LSE trading laws. Imo the answer was weak. Last time the directors did buy, Justin purchased 180,000 (May 2005). He now owns 250,000. Major shareholder?

Institutional buying
They mentioned that in the past couple of months there have been a few large funds buying significant quantities of stock and seemed pleased with that aspect.

Location of business
On being asked if they intend to stay UK based, or perhaps move to Gibraltar (for example). They stated that they have a company in Jersey (gambling.com) and had investigated the tax in detail. As the tax laws stand they do not envisage paying more than 10% tax overall at any point in the future.

Gambling.com
Jason said that gambling.com had outperformed even their greatest expectations. I get the feeling that a lot of resources that would otherwise have gone into the portals, casino.ie etc. had gone into gambling.com (and rightly so I guess).

Domain names
The new eu domain name was discussed. They have applications for the .eu domains gambling.eu, casino.eu and others. They said that they have strong claims to them, but that only time will tell.

Online poker/casino
No information was given on the performance of the new casino and poker offerings. No questions asked about them either.

the analyst - 28 Mar'06 - 10:22 - 18697 of 18698

Just before I go, want to look at the gambling.com net profit figures in a bit more detail.

The four months before aquisition up to April 2005 they made $558k overall, which is approx 82k per month. We were also later told that in May that had risen to 105k net profit. The annual report stated that in the five months from May to September they made $1.27m net profit, which is approx 710k. Take off the 105k for May and we have 605k for the period June-September - that's and average of approx 151k per month.

So,

Jan - April 82k per month
May - 105k per month
June - September 151k per month

Just trying to get a hold of the June-September figures, it must be that the net profit at the end of that period is much higher than at the beginning, having risen from 105k in May. Trying to model the growth, if net profit had gone up to 120k in June and using basic growth of 20k per month, it would fit around that average nicely and would be looking at something like June - 120k, July - 140k, August - 160k, Sept - 180k.

That is very impressive in my opinion. I see no reason why gambling.com shouldn't now be making well over 200k net profit per month, given that they stated it has grown again since year end in September and revenue per click is still growing. Throw in extra revenue in H2 from the syndication technology they have developed and that should go even higher.

If the syndication system does catch on then there is no reason why the net profit shouldn't go up to 300 / 350k per month from gambling.com. It's a very easy way for a website owner to get a 'top list' of sites onto their portal / gaming site and earning money quickly with almost no programming required and much easier than having to check the links every day. Potentially, I think we will see 4m net profit from gambling.com alone next year if they can market the system successfully. The potential is certainly there imo.

(all based on UK/US exchange rate of 1.7)

maybe this is why EK has bought back in again heavily. must admit I have got very bored by the lack of interest and dull sp-so reduced my holding. hopefully the holding I still have will pay off soon. thanks for the find Mickey.

Gaming Corporation PLC


Gaming Corporation Plc (The 'Company')

HOLDING IN COMPANY

The Company was notified on 3 April 2006 by Herald Investment Trust (HIT), that
it had acquired an interest in shares that resulted in it holding a total of
8,500,000 ordinary shares of 1p each in the Company, being approximately 3.08
per cent of the issued share capital of the Company.

3 April 2006

Plenty of buying this morning and the share price drops.
EK rumoured to have bought another 750000 shares.