Betfair IPO

[pokerdapyx]

So what do you think of Betfair IPO?
Is it a good investment?

More info here:
Betfair IPO values company at up to £1.5 billion | Reuters

[SoCal]

I think they would have been if you had jumped on them when they IPO'd. It's a pretty steady company that can only get bigger if the US opens up.

[MJ]

I meant to try and get in on that, def a good buy imo - especially with BetFair starting to work in the US on horse racing.

What do you guys think of the Harrahs rebrand to Caesars and IPO?

[TheGooner]

Usually when the public get in on a company buying it from private equity the deal is a bad one for the public - as the shares are usually very fully priced with the owners maximising their cash-out.

When founders and owners are cashing out - it's usually not a good time to be buying in - this IPO is how they get their money out - before moving onto new things.

Note that new shares were not created - the owners sold part of their holdings directly. So they've decided that THEIR money is better to be cashed out of the business - rather than retained within.

The share debuted highly at 15.42 (compared to 13.00 IPO price) and got as high as 16.10 but is currently at 14.59

Does anyone have numbers for Betfair's projected EPS or dividends? I've read somewhere that the P/E for IPO was around 25 which is highish unless you thing that Betfair is going to grow significantly.

Perhaps the US horse racing market ?

[MJ]

If I had purchased I'd be basing my purchase soley on their involvement in the US horse racing market, but I don't know how big of an expansion that is by the numbers - the trump card is obviously if US opens their doors to other things.

But.....yea, I don't a thing about a thing when it comes to stocks - plus I don't see why some of you guys bother with traditional investments when returns on investments in gaming can be xxx% pretty easily.

If I had a lot of cash I'd be buying up earners left and right, especially if I had better deals than the people selling.

[Josh]

I meant to try and get in on that, def a good buy imo - especially with BetFair starting to work in the US on horse racing.

What do you guys think of the Harrahs rebrand to Caesars and IPO?

Just read that they are backing out of it:

Harrah's folds on IPO and puts spotlight on PE | Reuters

[fantozzi]

Yea but if US opens its doors to online gambling, you would be definitely win a lot more by building websites and investing into websites compared to online gambling shares, which tend to be risky and passive investment.

[Pokeraddict]

Yea but if US opens its doors to online gambling, you would be definitely win a lot more by building websites and investing into websites compared to online gambling shares, which tend to be risky and passive investment.

If the U.S. moves towards regulation one of the issues that is certain to come up if Betfair applies is the millions they owe players and all of the allegations of fraud floating around out there surrounding the botched Happy Hour promotion. I have to wonder if that is part of why Betfair's stock price has collapsed.

U.S failed to regulate in 2010 + botched promo that will come back to haunt = lack of growth potential for Betfair.

[MJ]

If the U.S. moves towards regulation one of the issues that is certain to come up if Betfair applies is the millions they owe players and all of the allegations of fraud floating around out there surrounding the botched Happy Hour promotion. I have to wonder if that is part of why Betfair's stock price has collapsed.

U.S failed to regulate in 2010 + botched promo that will come back to haunt = lack of growth potential for Betfair.

The irony of this statement is that BetFair already does operate legally in the United States in the horse racing arena - I wish a company licensed in the UK and other areas, and even operating in the US, would have to face someone over their seizing of player funds - on the outside seems like regulation so far offers players very little protection.

[Pokeraddict]

The irony of this statement is that BetFair already does operate legally in the United States in the horse racing arena - I wish a company licensed in the UK and other areas, and even operating in the US, would have to face someone over their seizing of player funds - on the outside seems like regulation so far offers players very little protection.

I know this but they will be under a much deeper magnifying glass if they want to enter the gaming market if there ever is one. They bought their way into the horse rcing business before the scandal although I have suggested to people who got cheated to complain to US regulators as well as it may tarnish their ability to maintain their current licensing.