With the sale of gambling.com imminent, the next few weeks could be a big rise in MDC's share price. Now with a current market cap of only £8m the company has seen record growth through 2010 and at the start of 2011. John Drummond seems confident objectives have been met and is very optimistic. The drop in share price from 3.7p at the end of 2011 to now 2.5p should provide plenty of potential for MDC to reach over 4-5p short term and over 10p later in the year! The share is undervalued, especially if the £9m target price for www.gambling.com is achieved. It could go for even higher. We are due news next week on this sale and other objectives. The growth of the purple lounge and the advertising business are also very encouraging. Huge companies such as Playtech and bet365 could pay a premium for MDC. At 2.5p the share price is over 75% less than its target price and is a defo good time to buy here.
January's trading update was very positive
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10775056
plus the business update from December was also very positive
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10748928
http://www.online-casinos.com/news/news2110516.asp
looks like there is going to be more pressure to legalise online gambling again in the USA. It makes me believe that there have been some hefty bids for www.gambling.com by some big companies in the business who can hold the asset until legalisation occurs and use googles number 1 ranked gambling site to regain its value as a domain/business. Remember the market cap of MDC is only £8m at the moment. If it is true that gambling.com can achieve around £9m from being sold then this share price will double instantly, not even including the already £2m cash they have in the bank plus the growth of eyeconomy and purple lounge and a nuber of other assets they have. News on the sale is expected before the end of the month and this will move very quickly on good news. I think 2.4p currently is a no brainer and an absolute steal and potential multibagger on a big scale.
