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Hi,
I rarely comment on this website, but when I do I typically warn investors that have their judgement clouded.
So initially, my knee jerk reaction was 'Great, this profit increased, this share price will rocket'. However after reading the slides, it does not look good, everything is slowly down, debt has increased(due to pension contributions which they will continue to make for a number of years) but the thing which really shook me was the dividend payments, it so foolish to pay out such high dividends when the business needs the money and can invest elsewhere, service debt, pension, upgrade, offers to attract customers etc etc. But this continued dividend payment will only lead this company in one direction, which is down. Until BT cuts it's dividend payments and starts investing in the company it's not worth investing and is better to stay on the sidelines.
p.s I neither own or short this stock.
GLA.
I do own Tobacco shares as a defensive stock, but on your point that Governments earn a lot of taxation from Tobacco, maybe some perspective is required. I agree they do earn a lot on tax from Tobbacco shares, however they spend a lot. more money on treating illnesses related to tobacco products, and this outweights the tax they gain.
The price is fair now, it shouldn't drop further, and if it does it will not be because of fobt.
Current price reflects profits £100mil lower than last year, maybe it doesn't take into consideration America, so it may push up a little from here, but taper your expectations, won't be near £3 soon, but long term will have to see how America plays out.
As an ex centrica holder, I decided to sell because when I moved house to a new area and had I set up a new energy supplier I went on uswitch and found that E-on was the cheapest for us, I will keep changing every 12 months, no doubt sometimes centrica might be a supplier, even my mum is wising up and leaving British Gas, and she doesn’t even know how to use the internet. The point I’m making is that Centrica has no competitive edge, none what so ever and the consumers on the variable rate will continue to dwindle until they aren’t any, the only edge in this market is price, it is highly competitive and that will continue to pressure margins. so ask you why are you invested in British Gas?
I think we're putting too much emphasis on America, yes it's a huge market, potentially the 2nd biggest gambling market after China. The complexity between the states will differ greatly, it won't be a walk in the park, and America 100% will favour they own companies to take the larfest slice of the pie, rather than international companies like william hill.
They will make very difficult for Will Hill to be the main player there.
Hi,
I intially had this as a buy after legalisation of gambling in America,however looking at everything this overvalued.
£2 on fobt is going to knock 100mil of the profits, Imo anything more than 2.25 is overvalued.
Hold it out, it will get that low eventually.
gla.
You also said it will tank, still waiting for that to happen..
This is a long time buy, American market is huge, way bigger than Europe, and as every state deregulates, the potential profits should increase. However, short term we may see a decline depending on the outcome of FOBT, I do not think it will be set at �2, because the knock on effects will be disastrous, job losses, loss of taxes revenue etc, but there will likely be limited to about �30 max per spin, making them roughly in line with other gaming machines. If it is set at �30, it will likely shave about �30m-�50m from the profits annually, this gives us a P/E of 12-13 at today's price, which IMO makes this share undervalued. Given the growth prospects in America this should be at a P/E around 20, giving it a price target of close to �5 long term. Paddypower are trading at a P/E of 30.
That's already been priced in, long term this will rise further due to legalisation of sports betting markets in America.
https://www.usatoday.com/story/sports/2018/05/14/supreme-court-sports-betting-paspa-law-new-jersey/440710002/ Very exciting times, long time buy. Will Hill stands to gain the most from deregulation of the American Market.
Thanks for clearing it up, I think I may have misunderstood the whole RI.
With the complete irrationality shown with this share today, everybody should jump on AA, they're very likely to have a rights issue too. Fair play to everybody who made money shorting or longing, but it is completely illogical, RI is set in 300's but share price is trading over 1000, go figure!
I've never seen anything like this, reminds me of the dotcom era, where share prices behaved so illogically, that they would go up regardless of the news.
Is that correct? The RI price is in the 300's?
haha i'm not invested in this company, I owned some last year but sold when things got messy. Mr Market is confusing me on this share, so i'm staying out until it makes sense to me :-) The rights issue price, has that been released? usually the rights issue price is lower no?
Hi Can somebody please explain to me why the share price is rising? The results aren't great and they want rights issue? Why has it increased by over 75%?
Comcast just offered £12.5 per share! This can get very interesting with fox bidding as well, bidding war!!!