Betfair set float price

Long, short, Bitcoin, forex - Plenty of alternate market disuccsion.
Post Reply
Bet Angel
Bet Angel
Bet Angel
Posts: 3999
Joined: Tue Apr 14, 2009 3:47 pm

http://corporate.betfair.com/media/pres ... 10-07.aspx

The indicative price range of the Offer has been set at between £11.00 and £14.00 per Share, which is equivalent to an equity value for Betfair of between approximately £1.16 billion and £1.48 billion based on its issued share capital2. This indicative price range is expected to make Betfair eligible for inclusion in the FTSE 250 Index in due course.
PeterLe
Posts: 3715
Joined: Wed Apr 15, 2009 3:19 pm

Bet Angel wrote:http://corporate.betfair.com/media/pres ... 10-07.aspx

The indicative price range of the Offer has been set at between £11.00 and £14.00 per Share, which is equivalent to an equity value for Betfair of between approximately £1.16 billion and £1.48 billion based on its issued share capital2. This indicative price range is expected to make Betfair eligible for inclusion in the FTSE 250 Index in due course.
Dont think Softbank will be too pleased if the price is at the lower end...
Dont suppose Bert is that bothered either way...even at £11 he stand's to rake in £280 M ! :o
Bet Angel
Bet Angel
Bet Angel
Posts: 3999
Joined: Tue Apr 14, 2009 3:47 pm

Bet Angel
Bet Angel
Bet Angel
Posts: 3999
Joined: Tue Apr 14, 2009 3:47 pm

Bet Angel
Bet Angel
Bet Angel
Posts: 3999
Joined: Tue Apr 14, 2009 3:47 pm

Trading under the EPIC code : BET
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Mate of mine was out having lunch in London today and saw The Betfair lads out celebrating the float by having lunch, he managed to get this footage of one of them with his wife:

http://www.youtube.com/watch?v=AHo2pXO_XAI
Exacta
Posts: 151
Joined: Wed Aug 25, 2010 2:57 pm

:lol:
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

This opinion piece may be of interest:

http://www.telegraph.co.uk/finance/comm ... f-run.html

Jeff
Bet Angel wrote:Trading under the EPIC code : BET
Bet Angel
Bet Angel
Bet Angel
Posts: 3999
Joined: Tue Apr 14, 2009 3:47 pm

As Buffett said, short term the market is a voting machine, long term a weighing machine. In all my times in the market I've only ever made good investments buying at low prices, which is why I've been negative on Betfair as an investment at these levels. It has served me really well over the years to not buy growth.

There will be lots of hype and interest and the price will fly around all over the place, but Betfair will only be worth this much if they deliver significant growth over the next few years. One slip up and the shares will plunge. As we know core markets are flat, so this growth can only be achieved by charging more or expansion.

I will buy some shares though, as the chance to be a big customer as well as a shareholder and the rights that confers is just to good an opportunity! I will wait for the froth to die down though and it wont be many. Just enough to get on the radar.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Not sure if Paul Roy's role in the buying of shares in the float should be discussed here or in the Levy thread, think I will plump for the Levy thread as it is likely to roll on for a good while yet.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

http://www.ft.com/cms/s/0/6546a196-f86f ... z16PE06LCU

Betfair was targeted by analysts in a quiet London market on Thursday when they said the stock was overvalued by 70 per cent.

“Betfair is approaching maturity in the UK, faces significant regulatory threats elsewhere, and will gain little traction in financials,” said Investec analyst Paul Leyland.

Betfair founders and early backers last month floated the stock at £13 apiece, which valued the sports betting exchange at £1.3bn. This valuation needed “everything to go right”, Investec said. But it argued that growth was becoming tougher to deliver as occasional gamblers were less likely to be attracted by the better odds it offered. Investec also said Betfair’s expansion plans were far from guaranteed.

“Betfair needs a liberal tax and regulatory approach to online gambling in order to operate, let alone to thrive,” Mr Leyland said. “We see this as increasingly unlikely in any major market.”

Moving on to Lmax, Betfair’s spin-off for financial market trading, Investec described it as “a solution without a problem” that did nothing to challenge the existing broker model. “We do not see Betfair’s ‘disruptive technology’ having much to disrupt,” it said.

The broker set a 445p target price on Betfair stock, which closed lower by 0.5 per cent at £14.71.
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

I bet Bert had a private chuckle when he read that, whilst thinking about how much the flotation had made him... ;)

Jeff
Euler wrote:http://www.ft.com/cms/s/0/6546a196-f86f ... z16PE06LCU

Betfair was targeted by analysts in a quiet London market on Thursday when they said the stock was overvalued by 70 per cent.
thehawk009
Posts: 22
Joined: Thu Oct 08, 2009 10:33 am

anyone got a position on this one? fairly aggressive sell off down to 13 now.

http://ftalphaville.ft.com/blog/2010/11 ... ing-heavy/
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

It looks like reality is beginning to dawn on the market...

It will be interesting to see how the price changes in the run up to the levy decision in the New Year.

Jeff
thehawk009 wrote:anyone got a position on this one? fairly aggressive sell off down to 13 now.

http://ftalphaville.ft.com/blog/2010/11 ... ing-heavy/
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I thought the Aus issues would have had an impact but it doesn't seem to have had much.

I think in the wider context, there will be lots of holders who will have waited to cash in. If they see the price falling them may be tempted to sell. There will probably be quite a stock overhang on this one for a while unless real buying pressure is in the market.
Post Reply

Return to “Trading Financial markets”