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?

My view
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.

6 thoughts on “Share tips”

  1. I shouldn’t worry: just because you know what you mean it doesn’t mean that anyone else does 🙂

  2. But, Tim, the reason for the bid is that MGM Resorts thinks that Entain is significantly undervalued …. (and that the anti-trust lawyers wouldn’t wipe out quite all of the synergies from the acquisition if the deal went through).
    So your reasoning isn’t all wrong: basic argument OK, price jump lucky.

  3. “Events that you don’t predict don’t make your prediction right.”

    Adopt the Spud approach.

    Day 1 – The sun will rise in the North tomorrow.
    Day 2 – Entirely as I predicted, the sun rose in the East this morning.
    Day 3 – As I was first to note, the sun always rises in the East.

  4. A pal of mine was CEO ( or something) of an Irish company around 2000/1 whose software was supposed to be able to predict stock market trends. Needless to say it crashed and burned, but only after I punctured his enthusiasm by asking if he could predict the Derby winner and after 9/11 which they completely failed to foresee.

    Algortihm science has improved since then but it still has to conform to the only immutable law in computing: GIGO.

  5. I work doing admin for business rates and the number of people that work as psychics, tarot readers, mediums who are surrendering their tenancies is incredible.
    Well it surprises me, but then again I didn’t see it coming.

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