So, got this one entirely wrong then:
Ladbrokes owner Entain has rejected a takeover offer from US casino giant MGM Resorts worth around £8.1bn, saying the proposal “significantly undervalues” the FTSE 100 gambler and its prospects.
Shares soared by more than a quarter to £14.29 in early trading, valuing the gambling behemoth at £8.4bn.
I did tip it, back on the 18th of Dec.
GVC Is Now Named Entain, And Is An Undervalued Buy
The thing is, I got the reason wrong. So, it doesn’t count, does it?
I’m bullish on the whole American betting market. It’s never been difficult to bet even if it has often been ever so slightly not entirely legal. The new legality I expect to lead to a booming market.
I rate the British bookies as likely candidates to do very well in it. Yes, certainly, it’s a different market and different culture but running a book is also running a book.
Finally, Entain looks undervalued compared to its peers. I’m a bull.
The investor view
I believe it’s worth picking up some Entain to hold for the medium term haul. I expect the undervaluation against peers to narrow and there’s always that chance of a full US listing to unlock further value.
This is more than a speculation yet less than a significant core holding.
Events that you don’t predict don’t make your prediction right.