GIG - Min vurdering av GIG til nåværende prising.


Late November and during December, the share price did rise from around 5 SEK to 9 SEK due to several aspects. Since then the share has falled back to around 6 SEK. Main reason to the rise in shareprice was probably that the company said it was doing a strategic review, including looking into the possibility to divest assets. GIG Games was closed and next in line would be to divest the B2C division or/and some media assets and reduce cost in the GIG Sports with a possible JV. In addition it looks like a lot of cost savings will be done going forward with a positive effect on the bottom line.

Share price 6 Sek looks like a good entry.

If one believe the reaction in share price from 5 to 9 SEK is somewhat representative for the share value and MC post divesting a division, logically then now should be a good entry. One could say that since we are closing in on the bond deadline in March, one should discount some for a default. That said, the strategic review and possible divesting process, was as far as I know, intiated 6 months ago, with the deadline in Mars in the backhead. Assets always have a price, and they have probably used the time to be sure they get a best possible marketprice. Since the bond deadline comes up early in March, and they highly probably want a buffer to that deadline, I feel pretty confident we will get some news, with a possible SPA (or LOI) around this, inside the next 6-7 trading days from now, before or on the Q4 report day.

Cost savings going forward.

Repaying all the bond will save ca 2 meur a year, closing of GIG games will save 3 meur a year, a reduced tech staff will (others than related to b2C), as I understand it, save around 1,5 meur a year and a gradually move to the new platform will save probably above 1meur a year. In addition will the Higroller payout be 1,75 meur a year for the next four years. Both the EBIT margin and the EPS will have an accelerating improvement, as the amortizations of the acquisitions will decrease rapidly during H1 2020. As we know, GIG has due to the Norwegian "Finanstilsynet", had a much more aggressive amor. than many of their competitors on these type of assets. This will now bear fruits, in terms of a positive impact on the EPS and EBIT from now on and gradually the next 2 quarters going forward (3 years amor. is ending)

What are the SOTP valuation for GIG assets? Its not easy to tell in today`s marked, but here are the average of Redeye and SEB verdict:

GIG B2C : 62 meur
GIG Media : 109,4 meur
GIG Core : 41,3 meur
GIG Sports : 3,9 meur
TOTAL: 216,6 MEUR

Net Debt is - 60 meur

A debt free GIG could then be valued at 156,6 meur ref Redeye and SEB. If you compare that to the marketcap today of 52 meur, GIG is only valued at 1/3.

We all know that there is a conglomerate discount in companies like GIG. That is Fair. What I think is interesting , is that we now are so close to possible divestments and still has this 1/3 valued MC to a debtfree SOTP. Even if we reduce the debtfree analyst predicted value from 156.6 to 100 meur, by reducing the valuation for Media and Core to get a buffer, we have a nearly 100% upside at todays levels.

What sorts of deals can be made?

Here I see particular one interesting type of deal, which can combine GIG B2C and GIG Sports. What is interesting is that GIG sports is one of only a few companies with a B2B sports service licence in USA. Their B2C divison also have licenses in a number of interesting countries including Germany, Spain and Croatia etc. A possible taker would than be a company that want to penetrate this and get a geographical footprint in this new growing markets, both B2C and possible sports B2B. You can say what you want about the GIG sports product (I would personally have done a reamp on the frontend to improve UX), but the licenses and structure they have set, with a couple of respectable clients, have value. A deal, which included that the B2C stayed on the core platform for a certain years and a joint venture/takeover of the sports division, could create the best synergies, both for the takers and for GIG.

Who is the possible takers?

That would be some with a room for it on the balance sheet and who would want to expand their geographical footprint. GVC has been interested in Scandinavian companies earlier and had at one point 15% ownershipan in Betit and an option to buy them before GIG did it. Willhill did buy MrGreen and infact MrGreen is already on GIG sports for some markets, and one could suspect they could expand their cooperation even more with a deal here. On paper they are perhaps the buyer that could create the best possible synergies.

I also see Betsson as a possible taker. They have said more than once that they search for possible M&A objects, they can expand their footprint into US and other new european contries. There is also a history between some of the biggest owners of GIG and CEO Pontus Lindwall (Betsafe was bought by Betsson and some of the biggest GIG owners worked in leading positions during the next year), so one must assume the negotiation climate is good.

There could of course also be other possible takers, but if I should try to guessimate the most possible ones, I would give Willhill 30%, Betsson 30%, GVC 10% and others 30%.

I expect some news inside the next 7 trading days (before or on the GIG Q4 report) regarding divestment(s). It could be interesting to note the respective q4 reporting days : Betsson ( 13 feb.), GIG (18 feb.) and Willhill (27 feb.)

Regarding the strategic review and the statement that has been made, you can read between the lines that both the B2C and probably a part of the media company is for sale. My view, which is supported by some colleagues in the industry, is that GIG will sell off the B2C now in february and do a JV with the sportsbook. What I believe will happen next, is that GIG will sell some of their media assets, but keep their Copenhagen paid marketing department. What we have left then later in 2020, is a company that will be a more pure service and SAAS datadriven company. A company that not only will focus on helping landbased/ media to go online, but also start focusing outside of igaming with their "GIG DATA" product.

I see a good r/r at this levels, since my view is that the MC should not be at a 1/3 of (estimated SOTP value - debt), this close to a highly possible divestment(s). They will cut cost and probably present a clean balancesheet in the near future. That said, to keep the momentum after this is done, they have to deliver. They have to show they can build shareholder value going forward, this to rebuild trust. By unlocking shareholder value with divestments, cut cost and focus more on CORE (values), I think they will get a good start rebuilding that trust.

I focus the most on my own startups theese days and SPEQTA , so I am sure others are more updated on GIG than me. Please fill in.

Disclaimer: I own GIG shares.
Redigert 12.02.2020 kl 17:22 Du må logge inn for å svare
VIC20
20.02.2020 kl 15:39 5222

Kjøpte lodd, vant, og innkasserte pene 6 % Synd jeg ikke kjøpte allerede i går.

Gull Hare :) går for long!

Glimrende tidspunkt for innside kjøp, med pålagt innsider meldeplikt eter handel - fornemmes søkt....

Henrik Persson Ekdahl, board member and primary insider of Gaming Innovation Group Inc. ("GiG") has today purchased 200,000 GiG shares at an average share price of SEK 5,47. After this transaction, Henrik Persson Ekdahl owns 4,896,125 shares in GiG. This information is information that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 15:15 CET on 20 February 2019. About Gaming Innovation Group (GiG) Gaming Innovation Group Inc. is a technology company providing products and services throughout the entire value chain in the iGaming industry. Founded in 2012, Gaming Innovation Group's vision is 'To open up iGaming and make it fair and fun for all'. Through its ecosystem of products and services, it is connecting operators, suppliers and users, to create the best iGaming experiences in the world. GiG operates out of Malta and is dual-listed on the Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com

https://finansavisen.no/nyheter/spill/2020/02/20/7499838/gig-innsider-kjoper-aksjer
Redigert 20.02.2020 kl 16:20 Du må logge inn for å svare
Krilan
20.02.2020 kl 16:30 5121

Kastet ikke du posten din a, Innertier? 😂
Jaqar
20.02.2020 kl 16:51 5073

Han gjorde en fantastisk trade. Solgte gig på 4.50 og kjøpte QEC. Deretter baisset han GIG men så kom det dessverre (for han) et innsidekjøp istedet.
Warom
20.02.2020 kl 17:17 5029

Var det en ting jeg i dag var ganske så sikker på, så var det en teknisk kursøkning(ligger en del om det i gig-kanalen på XI). Det andre jeg ble ganske sikker på når jeg fulgte med på kjøpspostene i dag, så var det at det ville komme ett insidekjøp.

Ja. Krilan.
Vært sjelden, men ok GIG trading i år. Solgte long posten for 9+ i fjor, etter periodevis nedsnitting over tid fra 28 - 8,70. Det var vel spennende - tålmodigheten ble testet grundig :)
Kluet er å få til å handle på tidligere dagers historiske topper og bunner, når man skal time inngang og utgang.
Strategien er å kjøpe på vei oppover, for så å sette stop loss rundt bunnen fra tidligere dager.
Det funker godt på det jevne. Spesielt om man mestrer disiplinert stop loss strategien ;) Ikke helt enkelt, men det er bare å drille den til - så sitter den - etter hvert!


Byttet fra GIG til REC.
Trade GIG igjen etter hvert - ble usikker - mistet rythmen og tok time out.
---
Edit:
OEC ble tatt med i Tier portefølje på long basis i desember - inngang 1,17 - 1,20 og påfyll onsdag d.u. 1,70. Tenker 2/3 - 3/3 nedsalg tett på 2,50 eller 3,00.
Går det vurderes evt ny inngang etter "blanke ark" evaluering FA/TA

Planlegger time out aktivitet fra børsene primo april til ultimo august. Ti års planlagt lang ferie - bare nyte - uten budsjett og stressende reisemål - begynner med et par tre uker bare hjemme :D. Bli hjemmevant dagtid ;)




Krilan
20.02.2020 kl 19:26 4859

Ta deg en ny long post og nyt ferien InnterTier, det hørtes helt nydelig ut! Men å gå hjemme i 2-3 uker er forbeholdt de over 50. Ingen anelse om alderen din, men med tanke på all fråtsingen av bamsemums, så tipper en barnslig lav 40!
NY-I-GIG
20.02.2020 kl 19:38 4836

Absolutt en GIG dag det lukter svidd av 👍
Tar med meg denne gledens dag, og tar noe godt i koppen i kveld.
Kjenner jeg er spent på utviklingen i morgen, og kommende uke.
Har vi satt en bunn, eller blir det opp i dag og ned fremover.
Ikke helt enkelt å begripe seg på denne aksjen.
Exp3rten
20.02.2020 kl 19:39 4833

Du må ikke tro på alt du leser, Krilan.

PS! Er det ikke vanlig at de fleste selger på topp og kjøper på bunn?
Warom
20.02.2020 kl 20:14 4783

Nei, ikke for min del i alle fall Exp3rten, men jeg prøver jo å treffe noe som kan ligne en lav kurs og prøver å selge de samme på en høyere :)
NY-I-GIG
21.02.2020 kl 00:53 4580

GiG partners with GroupVery increasing personalisation for clients

20 February 2020
Gaming Innovation Group (GiG) are pleased to announce a new partnership with GroupVery, a UK based tech consulting company, which supplies specialist tech teams to customise frontends. GroupVery will be handling the frontend development for our Platform Services customers with specific requirements. This means they will be the perfect partner for our own in-house industry leading tech teams, allowing them to focus and concentrate on developing our own building blocks for Magic and Wand, speeding up the delivery time and enriching the frontend experience for our customers.

GroupVery are betting industry specialists. They currently have partnerships with a number of tier one operators including Paddy Power BetFair, and also work with B2B startups – providing high impact technical teams to work round the clock on specialist deliverables.

There are a number of markets which have specific requirements where GiG’s current products would require timely and costly specialist frontend development, limiting GiG’s ability to bid on tenders. However with GroupVery’s fast and cost efficient complementary frontend development, GiG can now enter such markets, increasing the potential growth of the business.

GroupVery can take GiG’s total solution, personalise it to match the requirements of a specific market, enabling GiG’s solution to operate in a previously ruled out market, in a flexible, agile and scalable way.

Chris Armes, GiG’s chief information officer, explains: “We will continue to build and offer total end to end solutions for our clients, and GroupVery will complement this service by providing particular specialist components, further personalising and speeding up the service provided to our clients.”

Christophe Bajc, GroupVery’s chief executive officer, comments: “We are thrilled of this new partnership with a technology company at the forefront of iGaming Operations, and to contribute to their and their customers success by complementing their existing skills and experience in customising their frontend projects.”



About Gaming Innovation Group (GiG):

Gaming Innovation Group Inc. is a technology company providing products and services throughout the entire value chain in the iGaming industry. Founded in 2012, Gaming Innovation Group’s vision is ‘To open up iGaming and make it fair and fun for all’. Through its ecosystem of products and services, it is connecting operators, suppliers and users, to create the best iGaming experiences in the world. GiG operates out of Malta and is dual-listed on the Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com

To find out more contact pr@gig.com.

Venter med long post til GIG bunner ut. Enslig innsidekjøp, som traff meldeplikt planken samtidig som GIG brenn peng holder ikke for meg. Noen GIG aksjonærer er lettere påvirkelig enn hva sunt er - omsetningen var ikke all verden i går, men …. tradere som høstet skal ha kred - godt jobba.
Tapte 70 øre på siste traden 20`, stop loss salg 5,80 i første timen 18.feb - heldigvis. SL er GULL, ok anvendt - uten jabbing og endringer.
Mener kursen fremdeles er i synk modus, selv om Tigergutt (katta) ypper seg på kommando.

BamseMoms praktiseres ikke bokstavelig. Kun trim/ lett trening og vann nok, før og til mat og annen drikke. Utfordring å ta vare på kroppen i denne bransjen.

God fredag og helg etter hvert, når den tid kommer!

Edit: Siste meldinga blir ikke å avleire positiv DB for GIG i 2020. Vært mye hastverk og lastverk aktivitet i selskapet. Den takten må elimineres.
Redigert 21.02.2020 kl 08:48 Du må logge inn for å svare

Vi får ta med oss det positive som er selv om kursen ikke er all verden for øyeblikket. Er det noe som ikke blir berørt på et fundamentalt nivå av virusfrykt, så er det dataspill og online gambling. Når folk må holde seg inne, blir det heller mer av det.

Godt poeng. I GIG svinger det såpass mye selv uten virusfrykt, så dette preller av som vann på gåsa. Kunne hatt samme utvikling i dag om børsen var grønn.
Dealsen
27.02.2020 kl 14:12 3223

Si det til aksjekursen - hehe!

Prøver ;) Men alt faller jo nå uansett hva selskapene driver med. Men fundamentalt vil ikke en pandemi skade gamingaksjer slik det vil i mange andre sektorer. Kanskje vil de tjene mer enn normalt.
Redigert 27.02.2020 kl 14:24 Du må logge inn for å svare

Situasjonen vi nå er oppe i må da være gode tider for spillbransjen? Folk sitter inne verden over. Alle idrettsarrangementer, konserter, eventer osv avlyses. Restauranter og utelivet ellers stenger. Hjemme skal vi sitte å se på fotball på tv.. ehh nei, ingenting der heller. Ingenting å spille på oddsen selvsagt, men vil ikke det føre til en betydlig økning i casino-omsetningen? Noen som har gjort seg noen tanker?
Gutten
16.03.2020 kl 14:10 1791

Den som lever får se!
Än så länge syns inga tendenser som lutar åt att folk sitter hemma och spelar i större utsträckning än tidigare. Det kanske kommer framöver om dom allmänna effekterna av virusfrossan håller i sig.
Exp3rten
16.03.2020 kl 16:13 1729

Det interessante er at Evo, som er en live-casino-leverandør, er opp ca 10 % YTD. Nesten uberørt av CORONA. Alle tidligere observasjoner peker mot at nettspill øker i "krisetider". Dette kommer fra bransjen selv. Nå sitter i tillegg folk hjemme.

Husk på at GiG først og fremst er en casino-leverandør, noe som betyr at kanselleringer av idrettsarrangement ikke skal påvirke negativt.
BIF78
17.03.2020 kl 16:00 1443

Det er vel en fin opdatering
Exp3rten
17.03.2020 kl 16:06 1436

De opprettholder guidingen som ble gitt sist.... I tillegg....

... In these times of turmoil GiG has so far proven that our technology is robust, staff agile and that there is a increased demand for our services across of different verticals.”
BIF78
17.03.2020 kl 16:09 1426

Ja, det ser lovende ud og viser, at det er en aktie, som ikke burde være faldet 4 kr på grund af covid-19. Jeg købte i 2.60, det tror jeg, at jeg vil være glad for om 3-4 måneder

De står fast på tidligere guiding og i det perspektivet er mcap på et par hundre mill helt på trynet. Det er mange billige selskaper på børsen for tiden, men mon tro om ikke GIG er blant de billigste. I hvert fall sett i lys av at det er business as usual og de har falt mer enn de aller fleste andre.
Far-far
17.03.2020 kl 18:46 1309

Det er sikkert mye som kan gå Gigs vei, men når aksjen er i en langvarig nedadgående trend så hjelper det lite å pisse i buksa for å holde varmen.
Markedet bestemmer. Kanskje lurt å kjøpe Gig nå og satse på at øvrige markedsaktører tar feil, dette har over lang tid vist seg riktig å ikke gripe en fallende kniv.