Rank Share Discussion Threads

[quidnunc] 12/10/2009 09:58

Looks like Rank have outsmarted them and re-invented the way Bingo is played.
More power to them.
However, the possible bid has been on the cards for so long that I'm not sure how much it will put on the share price when it finally crystalises.
Q.

[grizzly bare] 11/10/2009 16:42

Yup a nice little finish to the week ....what will this week bring.

Grizzly xx

[loganair] 10/10/2009 09:25

Well that was a pleasant sudden spike in the share price right at the end of todays play!

[grizzly bare] 09/10/2009 08:40

Grizzly xx

[grizzly bare] 09/10/2009 08:00

Positive article today from ....

The Times
09/10/09

Rank Group

Rank Group and Ladbrokes, both of which updated the stock market yesterday, are two of Britain's most venerable gambling institutions. The former owns Mecca Bingo and Grosvenor Casinos together with an internet betting business, while Ladbrokes, though no longer in casinos, remains Britain's top bookie.

On the face of it, Rank has had the toughest time of it over the past couple of years, what with the smoking ban, the outlawing of lucrative high-jackpot gaming machines, a consumer downturn and a series of punishing tax rises. But Ladbrokes has had to deal with tax and recession-related issues of its own, not to mention a dismal run of results in its core racing and football markets.

Yesterday's numbers suggest the pendulum has swung back the way of Rank. While pressure from the banks to reduce a £1 billion debt mountain and a poor trading outlook has forced Ladbrokes to tap shareholders for £275 million via a rights issue, Rank has quietly gone about stabilising trading and strengthening its balance sheet through a series of less eye-catching but equally effective measures.

While Rank still has plenty of work to do, yesterday's update revealed encouraging progress. Trading at Mecca, for example, has improved since July's interims, while revenues from Rank's regional casinos have maintained their previous strength.

But the overarching appeal lies in the composition of Rank's share register: two Far Eastern groups with big gaming interests, Hong Leong and Genting, are sitting on stakes of 28 per cent and 11 per cent respectively. A bid - at some stage - seems inevitable. At 90p, or 12 times current-year earnings, Rank, a constituent of the Tempus Ten, remains a solid hold.

Grizzly xx

[hyper10] 08/10/2009 19:03

Loganair, you were right about not being shorters. I don't mind things are looking up and maybe I'll make some money

[loganair] 08/10/2009 18:20

Grizzly - I hope and doubt very much we'll be seeing the sub 60p levels again when the double bottom was formed.

Does any one recall when all this started we're were thinking and talking that any bid would be pitched at 125p to 150p level? It looks very much like according to the recommendation that we're likely to reach the 125p level in any bid.

Also we need to remember that Genting brought their 11% stake at around the 90p to 100p level and they would want to make a decent profit, especially as they haven't so far earned a penny from dividends.

Lets get ahead of ourselves a little here. If a bid at a 30% premium comes when the share price is between 90p and 100p we could be looking at a bid of around 130p. Remember there is as much as 50p per share due back from HMG if all goes Ranks way.

May I say I'm very glad that I didn't sell any of my holding when the share price fell through the 60p level. I recall Grizzly that at that point you began to get the jitters and talked about selling-out.

Grizzly - I was wondering who made the recommendation?

[scrapman] 08/10/2009 13:49

well , a bit disappointing in terms of share price , looks like the only good thing thing is earnings are stableising ,

suppose the only things left are the VAT ruling and the bid potential that we have all hoped for what seems like forever

[grizzly bare] 08/10/2009 11:52

Well no reaction this morning to the results in share price until this analysts recommendation came out a short while ago and now we're flying ...........


BUY. Our buy recommendation is based on our belief that Rank
will get taken-over. Hong Leong and Genting hold 38% of the equity. In
the meantime trading is improving modestly – Rank had its own private
recession in 2008 and is now recovering, the one cloud remains, as
always, potential tax hikes from a government desperate for income.
DETAILS – Trading continues 'in line with management expectations' and
we leave our forecasts unchanged. The Casino division is the best
performing business with +2% provincial and flat London L4L sales. The
+16% visits in the provincial estate is a strong indicator that the new 'G'
format is working and has bags of potential. L4L Bingo revenue is +1%
with visits down 3% and spend per head +4%. Elsewhere, Spain and
Interactive remain poor as expected.
VALUATION AND RECOMMENDATION – We reiterate our Buy rating
and 120p price target. The business is packed with potential not reflected
in the short-term multiples. This will either come through organically or be
crystallised by a bid.

Grizzly xx

[grizzly bare] 08/10/2009 07:46

Well todays interim report doesnt reveal anything new that the half years report didnt reveal. Trading about the same.

Much hope for the Gcasino operation model for the future as before and testing new FullHouse bingo model.

Not gonna see the share price on fire on these figures alone!

But a nice little float-off of Bingo at some stage if FullHouse works would leave a Gcasino operation with a lot of potential when all clubs are fully converted .........or relocated into the Thistle/Guoman Hotels!

The brand "G" sits very nicely with G for Guoco.....wont have to rebrand!

Grizzly xx

[grizzly bare] 07/10/2009 17:35

Quid - well it was!

What will the morrow bring? Let's hope its tidings of comfort and joy.

Grizzly xx

[quidnunc] 07/10/2009 11:51

The market seems optimistic about it!

[grizzly bare] 07/10/2009 08:42

Just a reminder ......tomorrow.

"The Rank Group Plc will release its interim management statement for the 40
weeks to 4 October 2009 at 7am on Thursday, 8 October 2009."

Grizzly xx

[grizzly bare] 04/10/2009 08:41

Not sure if we posted these at the time or not....





and today this ......;



Grizzly xx

[grizzly bare] 02/10/2009 16:46

Chartwise looks like we are heading for magenta .....




Grizzly xx

[scrapman] 01/10/2009 14:26

thanks griz ,

Lousy volumes today again , seems to be Fridays and Wednesdays when the vols spike

btw , were you ok with the storms ?

[grizzly bare] 01/10/2009 11:03

Logan - not sure that the Bingo side is what either Guoco or Genting would want to keep long term, but who knows.

Whatever, with the Bingo being cleaned up and modernised and taken out of the old cinemas, it starts to have value again and phoenix-like may arise from the ashes, (maybe of ex-cigarette ashtrays), to be worth keeping or floated off.

A nice IPO of Mecca Bingo as a standalone should bring in quite a few quid, particularly if they can get rid of the Gordan Brown 22% bingo tax and simply be taxed at 15% as would be fair.

With all the share combinations you mention you can be sure of one thing .... that Goldman Sachs have had their sticky little fingers in the pie from the beginning and know where most of the pie is at the moment and where its going to be in the future and at what price!


Grizzly xx

[grizzly bare] 30/9/2009 20:16

My own view has always been that Guoco, who slowly took control and ultimately ownership of Thistle Hotels,(.... and The Clermont Club casino from Rank,) want to do the same with Rank and gain control and ultimately ownership of the casinos and licences.

They can then move the casinos into their Thistle (Guoman) Hotels as circumstances allow and add value to the hotel group. The bingo side can be floated off if it does not fit with the Groups identity. They can also pick up nice windfall VAT repayments.Maybe end up with what they want to keep for free.

I am sure they already have in place agreements with third party Rank shareholders to buy their shares at pre-determined prices when the share price hits those prices. eg Genting. Their Accounts state this is something that frequently do.

I would not be suprised if they do not already "unoffcially* have 51 per cent control via their dealings with Goldman (the fires tomorrow) Sachs.

Grizzly xx

[loganair] 30/9/2009 17:26

quidnunc - Guoco could not have taken-over Rank for 30p cheaper due to the stakes of the other notifiable share holders at that time being more than 50% of the share issue of Rank.