From the Blue Index blog

Dont bet on Ladbrokes
May 15th, 2009

Shares in bookmaker Ladbrokes (LAD) were looking like a good recovery play up to this morning, having regained over 50% of their value after the October low of 133p last year

But this morning, Ladbrokes reported a 34% slump in profits for the first four months of 2009. Profits from big spending high rollers tumbled to just GBP25m from GBP40m in 2008, with punters enjoying a particularly good Cheltenham Festival in March. These abnormal gross win margin levels, increased free bets and unfavourable cost phasing in eGaming against the previous year resulted in the profits slump, although CEO Chris Bell was at pains to point out the rate of decline is not representative of our expectations for the year, and he said the decline has already given way to more normal trends in May. And overall, added Chris Bell, the general resilience of the business and strong cost controls gives us confidence in the outturn for the full year.

But brokers Noble, Shore Capital and Daniel Stewart all see the results as disappointing and weaker than expected, particularly given that results at rival William Hill are strong and in stark contrast

Full transcript here
http://blog.blueindex.co.uk/2009/05/dont-bet-on-ladbrokes/

ADVFN used to hold the info but stopped last year when the shorting shite hit the fan.

lad will drop a bit more yet imo

Not far off the bottom though, imo. 135p maybe???

that seems about right - 135 to 140

More Ladbrokes shares shorted
Business Financial Newswire
New York-based asset manager Highbridge Capital Management has shorted 0.51% of Ladbrokes shares which are subject to a rights issue.



Story provided by Business Financial Newswire

"Nomura has cut its price target from 185p to 135p, explaining that 28p of the 50p cut is to reflect the dilutive aspect of the one for two rights issue while the rest is due to a lowering of earnings forecasts following last Thursdays statement."

I don't understand price targets such as the one above, if Nomura had a price target of 135p when the price was 185p then ok, but to give a price target whether on the up side or, as in this case the downside when their target price is virtually hit is meaningless, or am I just thick. Reply please on the 20 sheets of A4 supplied, ha!ha!
2517

only 20 sheets or did you mean reams?!! only joshing you are not thick just a lot more enters into the calcs - GL

A bookmaker who's "Profits are down, needs a rights issue, and now paying no final dividend"? sounds like they must have a particularly inept management.. avoid unless things become clearer I would have thought IMHO.

As I actually hold some of these, 95p (the rights issue price) still looks like a good bet (ho ho).

MM - good luck - but the funnymenatls say no!

skinny - yes, I'm having second thoughts. I might pass.

When these turn could be a good bet ... watching for now.

Goldman now got 7%

Hic!

LAD doing well today, WMH is doing even better.
2517

I suspect LAD being dragged up by the reasonable figures from WMH.
Be careful as anyone in profit here on the bounce will exit sharpish, imo.

Shares mag has it as a "high-risk buying opportunity for the brave" at 140.3

Do ya feel lucky?

Trafalgar reduces Ladbokes shorting position

Trafalgar Asset Managers has reduced its short position in Ladbrokes shares.

Having previously held a short position equivalent to 0.46% of the issued share capital of the bookmaking firm, Trafalgar says this was reduced to 0.28% on 21 October 2009.

Starting to look interesting for us mortals!