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.

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.

Yes he has. Interims out soon.

MS

bought back a chunk today--hope there's good news soon!!

Bought more a few days ago so upwards and onwards. Got to get going soon

MS

Mention in business on line - target 24p in 12 months.
/www.thebusinessonline.com/Stories.aspx?StoryId=2D6E19C6-CAF4-4734-B2CB-9266FF706E6D&page=0

After the tip over the weekend - here come the buyers

From the other side. Up nearly 10% today. Lets hope we can hold on to the gains.

snaptastic - 24 Apr'06 - 08:08 - 19173 of 19195


http://www.thebusinessonline.com/Stories.aspx?Aim%20Investor&StoryID=2D6E19C6-CAF4-4734-B2CB-9266FF706E6D&SectionID=9A21BE85-0186-496A-9DFF-7C2F0883CFC3

GAMING stocks may not be as hot as they were last summer but Gaming Corporation is, at 10.5p, genuinely cheap on fundamentals. Its shares should rise whether the market falls in love with gaming stocks again or not.

Not only does this gaming marketing specialist have great growth prospects in a number of areas, but it is also a highly cash generative business with a cracking balance sheet to boot. Gaming Corporation squeezes the cash out from every possible avenue. Aside from running its own profitable online casino operation, it draws considerable revenues from pay-per-click, white label offerings, online poker, skill gaming and online marketing. A mobile gaming division with Orange as its main customer is another feather in a cap where revenue and profit growth are key. Stripping out the cash, the shares are trading on a current year earnings multiple of just 9.1, falling to 5.8. For a growth stock that is far too low.

Gaming Corporations speciality is in the acquisition of online gaming customers. The company maintains an impressive portfolio of easily recognisable internet domain names and its web portals therefore occupy attractive internet real estate. With no barriers to entry, there is no shortage of gaming operators queuing up to post banners and web links on the Gaming Corporations various web portals, paying an average of 2.50 per click-through.

The financials are far from unimpressive. For the year to 30 September 2005, the company reported pre-tax profits of 700,000 on revenues of 19m. Earnings of 0.2p per share were reported. For the current year I expect to see pre-tax profits of 3.7m, which should equate to earnings of circa 1p per share. This will grow to around 1.6p for 2007. But the reality is that Gaming Corporation could do much better. Its unique strategy of extracting every possible penny out of punters, gaming firms and any other avenue will see it continue to deliver exciting levels of growth.

This is a business with a solid balance sheet, supported by cash of around 4m and a host of highly cash-generative enterprises. Attaching a forward price earnings of 15 does not go nearly far enough to fully discount the remarkable opportunity that this business has for continued revenue and profits growth. Strip out the cash and the shares trade on a current year enterprise to earnings multiple of 9.1, falling to 5.7. At 10.5p, the shares are a buy with a 12-month price target of 24p.

great to have some positive news after such a long time-results soon?

mickey have you looked at BTX? it's doing well but I'm in as I feel it's got a long way to rise-early days yet.

I does look like their could be some more upside....unlikley to return to the 10p level in the short term imo
Very strong support down there

the coming break of 12p will make it more highprofile
then volumes should pick up a bit

This really has picked up the last couple of days on the back some good news flow.
Mickey is the wife still holding these?

Yes she is but still a long way to go to put a smile on her face, and mine. Good news today and with the interims out soon I think we are at long last on our way. I think broker forecast is 21-25 in 12 months.

LOL
MS

I don`t think i will be hanging around in these to much longer even though i do believe in the prospects of GMC. The wife wants to go abroad on holiday so i have got to release some funds from somewhere,i`m sure she thinks i`ve got a bloody money tree a the bottom of the garden!!
DB66

Me and my big mouth,Yarmouth here we come.

This is such a frustrating share to hold. Tree shake me thinks. Don't you just luv those MM's.

MS