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PLS, PILBARA MINERALS LIMITED
_DC
post Posted: Sep 23 2007, 10:23 AM
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Online sports betting company Marginbet Ltd has had a disappointing debut on the Australian stock market.

Shares in the Australian Capital Territory-registered company closed three cents, or 15 per cent lower, on the 20-cents-a-share offer price, at 17 cents.

Marginbet's $2 million initial public offer (IPO) was marketed exclusively to members of the recently established investment services website, Prospectus.com.au.

Based on its closing share price, Marginbet has a market capitalisation of about $8.72 million and compares with its pro forma market capitalisation of $10.3 million, based on the offer price of 20 cents per share.

Through its wholly owned subsidiary Portlandbet Pty Ltd, Marginbet operates an international fixed-odds, internet and telephone sports and horse racing bookmaking business.

Marginbet was licensed by the ACT Racing and Gaming Commission to start taking bets in August last year, while Portlandbet began business in January 2005.

Chief executive Stephen Hobbs said there were significant opportunities for growth in the internet gambling market, particularly internationally.

"In the coming year, we plan to introduce a new sports betting medium known as spread betting or index betting," Mr Hobbs said.

"This type of betting is very popular in the UK and Europe."

Marginbet played down Wednesday the effect of equine influenza on its business, saying horse racing turnover comprised less than 2.5 per cent of Portlandbet's total betting turnover in the first eight months of 2007.

"... in light of the fact that it now seems that horse racing meetings will continue to be held in most areas of Australia, the current restrictions are not expected to materially limit ... growth or the 2007/08 net profit after tax of Marginbet Ltd," the company said in a statement.

"Portlandbet does have plans to grow the horse racing area of its business and it is possible that the potential for growth may be affected by current and future racing restrictions."

Director David Gray said Marginbet was not yet profitable.

He said sports betting is not as popular in Australia as it is in the UK, largely because the resources boom had tended to overshadow any other sector in the local market.

"The model is highly contingent on throughput, or volume, or gross gambling turnover as it is also called," Mr Gray said.

"Now the business has its funding, we're seeking to grow the active clients and start achieving the theoretical win ratio that sports betting businesses bank on."

He said sports wagering had a theoretical win ratio of four to six per cent, compared to 1.8 to two per cent for casinos and about 5.5 per cent for Centrebet, while ever popular lottery games had the worst theoretical win ratio.

The Age Sept.19th '07

Just a coment, MRB finished 17c with the options at 3.5c...........so not too far off the pace

 
Paul100
post Posted: Sep 22 2007, 10:42 AM
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In reply to: ShareNovis on Friday 21/09/07 03:28pm

One of the worst IPO's I have seen for a long time. A total rip-off. This company will go broke well before they ever make a profit.

A quick look at the financials tells you it is a worthless company.

Turnover for the first 9 months $4508000

Revenue 22715

That is a win rate of .0048%

A normal win rate would be 3 to 4%

Expenses of 2225846

Assuming a best case scenario where they got the win rate up to 3.5% then turnover would have to rise to at least 100M before they would break even.

So they need to increase turnover 16 times to break even in a optomistic scenario. How many years would that take. They only have enough cash to last 12 months

Given there is huge competition in sports betting there chances of success seem extremely unlikely


 
ShareNovis
post Posted: Sep 21 2007, 03:28 PM
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In reply to: ShareNovis on Friday 21/09/07 11:43am

Checked these shares out and they seem OK. Anyone got any input on them at all? Please share any opinions/news. Thanks. I'm interested in buying some. smile.gif smile.gif

 
ShareNovis
post Posted: Sep 21 2007, 11:43 AM
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In reply to: _DC on Wednesday 19/09/07 04:58pm

The options are not looking good at the current price of $0.135. I would like to know a bit more about this stock. Might check if they have been making money before listing.

 
_DC
post Posted: Sep 19 2007, 04:58 PM
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Worth noting that the Options........MRBO are excercisable to 18th September 2010 at a price of 20c...............now that could be worth a punt

 
_DC
post Posted: Sep 19 2007, 04:53 PM
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Marginbet Ltd (MRB, MRBO) lists following the issue of 10 million shares with free attaching options on a 1 for 2 basis at 20c for 30.22m shares and 5 m options with a right to over subscriptions of a further 2.5 million shares with attaching options. The company was incorportaed on January 10 2005. Subsequently wholly owned subsidiary Portlandbet Pty Ltd applied for a sports bookmaking licence in the ACT, granted on August 18 2005. On August 2 2006 Portlandbet commenced trading as a fixed odds sports bookmaker in the ACT and extended its operations in October 2006 to include offering fixed odds betting on Australian and international horse racing events. Portlandbet has signed up clients from over 40 different countries around the globe and has achieved in excess of $6.5 million gross gambling turnover to the period ending May 31 2007. Non executive chairman John Levy in the covering letter to the prospectus said while the company's core business is gambling, it will do all it can to ensure that luck plays a minimal part in its success or failure. It is the board's aim to put in place strategies that result in the company being professionally and responsibly managed to develop a successful and sustainable business. Marginbet, in a breakdown of global interactive wagering and gaming revenue, said Australians spend more per capita on wagering and gaming than do residents of any other country. Revenue of almost $US12 billion in 2005 is expected to rise by more than 16 pct by 2012 to almost $US14 billion in Australia and New Zealand. Although this rate is lower than the overall global growth rate, it should be reviewed in the context of the more mature Australian market. Directors: John Levy, non exec chair. A commercial lawyer in Adelaide for more than 18 years is currently a partner in the Corporate and Commercial Division of O'Loughlins Lawyers. Robert McKenzie, non exec, has been involved in marketing for 20 years and is currently managing director of Carat Australia Media Services Pty Ltd. David Simon Gray, non exec. Is the founder and managing director of Transparence Group Pty Ltd. He was previously with Macquarie Bank, Commonwealth Bank of Australia and Bell Potter Securities Ltd. Stephen Downer Hobbs, CEO. Mr Hobbs, a commercial lawyer in 1998 commenced employment with Centrebet Pty Ltd, leaving Centrebet in 2002 before it was sold in September 2003 for $46.55 million. He has extensive experience of the fixed odds sports betting industry. Pierre Andrew Van Der Merwe, company secretary. Pierre is a Chartered Accountant with 19 years experience.

 

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post Posted: Jul 17 2007, 11:00 AM
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