Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
CONTINUED:
ven a minor whiff of a betting scandal in the US, for example, could set that market back years, as anti-wagering campaigners would doubtless press for new laws as they evoked memories of the 1919 baseball World Series, thrown by the Chicago White Sox in exchange for cash.
However, momentum in the US is building and Hills’ prime spot here could well merit a higher valuation over time for the shares.
Questor says: hold
Ticker: WMH
Share price at close: 214.4p
Sell your losers and run your winners is a strategy preached by many a successful professional money manager, and this column must admit that it can sometimes be too forgiving when the share price of one of its selections starts to slide.
However, patience can be rewarded, provided that the company’s competitive position remains strong, its financial resources sufficient to see it through any near-term difficulty, and the valuation low enough to offer both protection from falls and the potential for gains.
Down at 37p in March, a loss of nearly 90pc on bookmaker William Hill was staring this column in the face. But our decision not to sell has paid off, at least so far.
Helped by a timely waiver of the covenants on its debt in May, a programme designed to cut costs and preserve cash, and June’s £224m fundraising at 128p a share, William Hill’s borrowings look much less onerous, especially as those covenants will not be tested now until next year and the firm has £672m in cash on hand, according to first-half results released last month.
The resumption of sporting activity around the globe is a further positive development, to give punters a chance to back their opinions with their stakes.
Trading has been sufficiently strong in the early stages of the second half to permit Hills to return the £24.5m in furlough cash it received from the Government, thanks in part to further advances in online revenues, an area where the company has traditionally been seen as a bit of a laggard relative to GVC, Flutter and others.
Best of all, William Hill continues to make progress in America, which remains a market of huge potential following the repeal in 2018 of the Professional & Amateur Sports Protection Act and the legalisation of sports wagering, albeit at the discretion of individual state legislatures.
Hills was already well-placed in America, as it was the leading regulated player in Nevada and had a relationship with New Jersey’s Monmouth Park racetrack before the law changed. It has since built on that position via exclusive partnerships with CBS Sports and the casino group Eldorado.
The latter has since acquired Caesars Entertainment to create America’s largest casino group and the newly created entity has just struck a deal with the US sports broadcaster ESPN, greatly enhancing William Hill’s reach both online and across 170 retail sites in 13 different states.
As a result, Hills continues to cement its strong position in the burgeoning US market and is doing so with little additional marketing spending, as it leverages existing relationships and technologies.
The gambling industry will not appeal to all investors, not least on ethical grounds, and key risks remain, notably any further cancellation of major sports because of a second wave, higher taxes and ongoing regulatory scrutiny.
Even a minor whiff of a betting scandal in the US, for example, could set that market back years, as anti-wagering campaigners would d