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/

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!

Now 123P ish. I noticed a 112p TP by 1 analyst.
2517

Business Financial Newswire 26.10.09
"Bookmaking group. Ladbrokes says that the 5% rump of shares not taken up in the rights issue have been placed at 136p per share.

In the open market this morning, the shares were trading at a mid-market price of 138.0p, up 0.6p since the market open."

How things have changed!!! Currently 123p.

ladbrokes caught my eye today as it seems to have so many TA positives going for it bar the market as a whole in general but in time Im sure we will see a recovery here.

The inverse head and shoulders is also covering a floor on the stock and if we go with normal TA rules the pattern would lead to approx a 30 point gain from breakout.

Ive bought today, one to keep an eye on.

ditto wm hill

Will have a look cheers cyners.

Added a few more here, way too cheap imho.

Missed this is must have come out late that day....

2009 2010
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Daniel Stewart
07-12-09 BUY 170.40 18.83 3.50 161.30 14.45 7.00

Results tomorrow.

Final Results.

Financial Results



Group net revenue(1) of 963.7 million (2008: 1,052.9 million)

Group operating profit(1)(2) of 168.5 million (2008: 250.7 million)

High Rollers operating profit of 66.9 million (2008: 80.1 million)

Interest(3) of 44.1 million with blended interest rate of 4.9%

Profit before tax(3) of 191.3 million (2008: 265.6 million)

Effective tax rate(3) of 15%

Earnings per share(3) of 21.7 pence (2008: 32.2 pence(4))

Cash generated by operations was 226.0 million

Group net debt was 694.2 million at 31 December 2009 (31 December 2008: 987.1 million) with undrawn committed bank facilities of 428.1 million

As announced at the rights issue, the Group will not be paying a final dividend, giving a total dividend for 2009 of 3.5 pence per share.(5)