NOT LOOKING GOOD

It's that time of the year again when we should shortly be hearing from Phumelela regarding the company performance.

Despite these matters being supposedly confidential the share price usually anticipates good or bad news. So much for the 'no insider trading' spin that the JSE tries to sell us.

If the share price is, therefore, any indicator as to what can be expected then it's going to be gloomy.

At the ruling price of R7-70 the share has bucked the general overall trend and declined in value by 18% since January 1st. This is in sharp contrast to the ALSI which is 11,69% up over the same period.

The big question is this : If they maintain the dividend then the yield hits an impressive 8% on the current ruling price.

We wait with interest.

Indeed Garrick, I see there is an order for 1 million shares to buy at R 7,20 per share but think it unlikely it will go that low for the time being. High of R 13 a share on 11 Oct 2011 all the way down to R 7,70 at whcih nobody wants to buy the 2000 or so shares available. At this price the historical div yield is about 8,6% taxable at 15%.

For anybody that believes in this company ( it has not so far issued a trading statement update which is required if results will be more than 20% different from the previous year) and rememer it increased its share of Betting World late last year, this should be a no brainer.

So why the fall in the price ?????

our spin doctor titch must be the one who has placed the order at 7,20....

I put the blame squarely at the door of all you terrible punters who support the open bet!

iam not sure the usual market forces influence the price of this share like it does others...because this share is hardly traded and has not been available to purchase for a while...but lets wait and see

Selling off the assets tends to reduce the relative NAV..................lol

reduced NAV = reduced share value = reduced share price !!!

Could be as simple as that.

Share closed at R 7,35 after touching a low of R 7,30 but less than 7 500 shares traded the whole day and only 77 shares traded at day's low and at closing price. I would say the price is more an indictment on management of the company than the shares true long term value. The value of property alone must be close to the share price.

Gajima Wrote:

---

> Share closed at R 7,35 after touching a low of R
> 7,30 but less than 7 500 shares traded the whole
> day and only 77 shares traded at day's low and at
> closing price. I would say the price is more an
> indictment on management of the company than the
> shares true long term value. The value of
> property alone must be close to the share price.


My point exactly............include the present day value of the SOLD properties and the value of the properties may be in line with the old share price(R13)??????

What is does do at this low price is make it a possible take over bid or a possible cheap delisting.

Loser will be the horseracing trust who' share value has been eroded by this long term fall.

Results released today :

Profit Before Tax On International : UP 63%
Profit Before Tax On Local : DOWN 43%

DIVIDEND increased by 12% ( ! ).

This idiot's interpretation of the numbers :

The international market quite likes our product ( the 'picture' ) and betting thereon ( co-mingling ; but that might also be because bookmakers are outlawed in certain jurisdictions so they have no choice ) . The locals clearly don't - maybe because Vodacom, Eskom, transport, food etc., got to them first.

Punters appear to continue to be migrating to sports betting. Racing fans had better start calling sports bettors 'sir' as they are clearly subsidising the soupmeat.

Fixed odds ( Betting World? ) showing improved performance - maybe the CEO might now get the message that some bookmaker products offer better 'deals' than some of the tote product ( eg compare ATC to a fixed odds multiple ) and cancel the proposed wailing session with the authorities.

Dividend now amongst the best on the JSE.

I would have guessed that ,bearing in mind who the majority shareholders are,and those who would have decided the dividend,that this is the reason few shares are traded .........it is an earner!

The nett dividend is in line with previous....I haven't seen the report but the increase probably represents the transfer of the savings in secondary company tax ,to the dividend, to offset dividend tax.

Many listed companies have adopted the strategy

how is the dividend paid versus the stakes pot compare?