Seven Aces Limited - Ordinary Shares ACEXF

Any Thoughts?

[JayG613]

On how this is something that will help the company, or not?

[lscfa]

"The directors of the Corporation believe that the proposed Consolidation better positions the Corporation going forward from a trading and financial reporting perspective." if the co. is about to record a quarterly eps of <$0.005 it will get rounded to zero, so 1:3 rollback raises the qtrly eps to at least $0.01..... $0.01 annualized is $0.04 and p/e multiple of 15x => $0.60

[JayG613]

thanks ISCFA-- I mean at .26 thats a nice jump I would like to see it gets there.

[Wonderwon]

would love to know how you get 15x P/E when Quantum bought Lucky Bucks for what 3x P/E?...you will be lucky if someone values this at 3x revenue (see Innova)

[lscfa]

What a dumbass example...Innova's operating income is < 5% of sales vs. 75% for Lucky....more profitable co.s get a higher sales multiple......

[Wonderwon]

Again, why did Anil sell his stake for 3x P/E?

[lscfa]

Pursuant  to  the  Agreement,  the  Issuer  indirectly  acquired  a  controlling  interest  in  Lucky Bucks,  LLC  (the  "Controlling  Interest").  As  partial  consideration  for  the  Controlling Interest,  Mr. Nail Damani and  a  person acting jointly  or

[Wonderwon]

Anil got ~$15mm for 51% which = $29.4mm for 100% LBI had earnings of $7.6 million = 3.86x P/E..a far cry from your industry standard 15x p/e

[Patrice440]

trade halt....hummmmmm

[lscfa]

Moron.....$13.5 mil US paid for 51% of $5.7 mil ebitda (not net earnings) => 4.64 x ebitda multiple....p/e multiples are always higher than ebitda multiples..... EBITDA of US$5,718,289 

[Wonderwon]

haha show me an example of 15x p/e for a comparative. I showed you Innova which is a comparative, they received an offer for about 1.5x sales which is the same multiple Quantum paid Anil

[lscfa]

RECOMMENDATION AND VALUATION - We maintain our BUY recommendation and C$6.00 Target Price. IGG currently trades at a C2016 (our estimates) EV/Sales of 0.5x and an EV/EBITDA of 2.2x vs its Global Gaming/Lottery comparables at an average of 3.4x and 11.6x, respectively.  https://www.cantorcanada.com/pdfFiles/20160316IGG.pdf

[Wonderwon]

It is a lot easier to make investing decisions when you do your own analysis instead of relying on some unverified report from Cantor.  I have cited two examples of arm's length transactions (Anil/Quantum, and Innova/Pollard) where the actual multiples are much lower than what you and Cantor cited.  By the way, still looking for the 15x multiple that began this topic.

[lscfa]

How f'ing stupid are you?....lucky had no taxes and no interest expense but QIC does....ebitda multiples are higher than p/e multiples because eps numbers are after taxes and interest expense...analysts compare co.s on ebitda multiples to factor out differences in leverage between co.s....I gave 2 alternative valuations of QIC with lucky and the 2 newest acquisitions, one using a ebitda

[Wonderwon]

Ok LBI has no interest and taxes which means earnings is the same as EBITDA, so the multiple was still 3-4x for either number...they just did another deal for $6mm, does this mean the net earnings or EBITDA on this company was $400k to get a multiple of 15x?  No one is using the 15x multiple..this isnt an SP500 company as much as you are hoping it is... You have to crawl before you ball