rimmy2000

up 1.6% again and now at 1 year high. A move above 320p would be a very encouraging.

JamesIG wrote: Hi - so there are minimum levels which you can invest. What specifically are you looking at trading on and via which account type? For example if this is a stockbroking deal then you'd be looking at a minimum of £8 to buy (and then £8 to sell) so therefore at a total cost of £16, you'd need a £50 investment to increase by at least 32% to even break even. The restrictions are there to stop this happening. ^ this. For £50 I'd struggle to make the case. I don't see that as economical, unless it is some kind of monthly regular order. Its probably worth you sharing the stock you are interested in. £50 stake will have you struggling to sell with any viable or meaningful gain.

I've a fairly strong conviction this could soon break out upwards. I note it was also tipped at the weekend in IC as 'clearly undervalued' I've got more info which will be posted in due course. NAI. Rgds

I get to roughly £3.90 / share for WMH on similar metrics, suggesting at least 30% upside. I think it well could come in nearer £4.50. no advice intended, do your own research etc.

News out today which lifted the price further. Now 22% gain. https://www.investegate.co.uk/william-hill-plc--wmh-/rns/agreement-on-nyx/201712070701076617Y/ On April 4th 16, WMH announced a ten-year commercial agreement with NYX Gaming, including the building of a new back-end platform for William Hill over the next three years, and an investment to support NYX's acquisition of OpenBet. This transaction is on track to be completed shortly. Scientific Games Corporation (NASDAQ: SGMS) then sought to acquire NYX. In turn, this led to threats of litigation in the US and UK. Today's RNS sonfirms that 'Scientific Games has agreed to acquire William Hill's ordinary shares and convertible preference shares in NYX with William Hill receiving CAN$2.40 a share for the 6.8 million ordinary shares it owns in NYX and circa GBP87m for its convertible preference shares.' Price has responded encouragingly to this news. EDIT 21.15pm, closed up over 8% on day. Been out all day but just seen LCL up 29% on day due to RNS. Snippet: The board of Ladbrokes Coral and the board of GVC (the "Boards") announce that they are in detailed discussions regarding the possible combination of the two businesses, following the receipt by Ladbrokes Coral of a non-binding proposal from GVC regarding a possible offer for the entire issued and to be issued share capital of Ladbrokes Coral (the "Possible Offer"). In my opinion, this increases the likelihood and almost certainty that WMH will be taken out later this year. It won't be a lone sitting duck. I'll look into the valuation proposed with GVC and LCL and infer what this means for WMH

This appears to have been a good call, and in the subsequent days the move has been validated. I remain long.

Hi Oilfxpro thanks for reading it. I also use technicals but like to ensure there is an underlying fundamental argument first, then then can use charts to time my buy an improve the pricing I obtain. However too much talk of indicators alone makes for very bland reading and I find it marginally unconvincing. Obviously on some asset classes like FX it is imperative.

Thanks Dsou, this is not a 'follow me' recommendation, but is my attempt to put together a case and then allow others to provide constructive criticism. I am glad you found it useful. I have a bit of free time so may elaborate further. Good luck on your investing journey

I first tweeted about this share in November, when press speculation caused a spree of buying and very interesting price action. I think this is the precursor for continued share price strength into December and the triennial review next year (http://www.telegraph.co.uk/business/2017/09/20/market-report-ladbrokes-rallies-hopes-benign-triennial-review/) WMH’s share price collapsed from its 2013 high of 484p to a 2017 low 239p in August 217. William Hill is the age-old bookies, founded 1934, that accounts for 27% of OTC and retail bets placed. e.g. one in three bets placed on the high street are taken with WMH. I have bought into WMH in the past for its reliable dividend, which has increased y-o-y since 2010, as we picked up from the 2008/9 FC. At the time, this offered a respectable 3% through 2012-15, and now stands at 4% covered almost 2x I re-bought most recently August this year, buying again in September and October as the price appeared to bottom out and stall. It was then, and is now, -appearing very attractive. The market cap stands at £2.4bn of which c£200m (eg 10%) is held as cash, WMH has an EV of £2.9bn owing to holding a bit of long term debt – which is nothing new to the company and is being paid down, amounting to around 3x PTP so nowt to lose sleep over. Factors in its favour a) Previous sector consolidation (Ladbrokes & Coral http://www.bbc.co.uk/news/business-33647635 ; 888 & Rank http://www.bbc.co.uk/news/business-37124207 ; ) William Hill has previously shaken off a £3bn takeover offer from Rank Group. (£3.50 p/s) b) Industry M&A activity as recognised by WMH in their Annual Report ( https://www.williamhillplc.com/media/11250/wh-final-rev1-printall_2017-03-01_181358.pdf pg 14) ‘Consolidation and scale…is becoming increasingly important, with companies investing millions in marketing and technology as well as paying gambling duties. This, combined with the potential for substantial cost synergies, is driving sector consolidation’c) c) Previous rebuffed merger proposals (Amaya http://www.bbc.co.uk/news/business-37600887) d) Treasury pressure and increasing likelihood the Gambling Commission stake review being far less imposing than “worst-case scenarios” suggest. e) International expansion. WMH is a UK heritage company, but also a global brand, and can be found in the US and Australia. In fact, most recently there is talk that is could be selling its AUS business to Crown Bet (https://www.ft.com/content/fbb79e7c-d0ea-11e7-9dbb-291a884dd8c6 ) this segment worth 7% of turnover or £114m. On a fc PE of 12, this being the cheapest WMH has been since 2011, mostly owing to caution around the government review, is my suspicion. More typically, this trades on a PER multiple of 16x which seems far more befitting for a well-established high street brand with the heritage and pricing power that WMH commands. Looking at next years’ profit forecasts then, of 25.4p and averaging the company’s prior 3yr PER gives an implied value of £4.06p. Let’s call it £4 and that is scope for 38% upside.. yet a merger deal could take it a lot higher than that. For those with patience, who don’t mind a flutter on the outcome of the commission’s review and looking for somewhere to earn 4% on their capital I think there are far worse things you can do with your money right now. The price continues to climb since my initial tweet, and the moving averages (for those into technical) are starting to align steady. There is a lot to play for. Thoughts?

Norcros PLC manufactures and markets showers, taps, bathroom accessories, tiles, and adhesives. You will know it from its range of Triton showers, and you may well know Johnson Tiles, too. It is today capped at £145m, with 79.9m ord’ shares in issue. It currently swaps on a PE of 6.3 based on this years’ full forecast of 28.7p. Shares offer at £1.81, and I think in the next 6 months are likely to hit £2.25, offering realistic upside of 24%. Below I outline why. NXR has been steadily increasing its revenues, and this far booked 10.6p of earnings, and historically always returns a greater portion of sales in the second-half. I’d say it will achieve 21p earning in the next half-year, based on history, giving a full year EPS of 31p, around 10% above broker estimates. To aid this growth, NXR has been buying complimentary services, most recently Merlyn Industries Ltd per its RNS 02/Nov/17. This was part-funded with placing new shares at £1.72, which were 55.7% taken up by existing shareholders, demonstrating a strong confidence and loyalty of its shareholders. NXR has a strategy to drive sales to the £420m mark by 2018, and this target is looking increasingly achievable. Two brokers have BUY rated this outfit, with a target price of £3.07p (69% upside) so considerably higher than my own mid-term target of £2.25p If NXR achieved FY18’s earnings estimate of 30.1p (and this seems highly likely on this years performance) and moved back to its three-year-average PER of 7.5 this gives an inferred price target of £2.25. Further, if it remains on track to produce revenues of £420m by EOY 2018, and can maintain its Operating margin of 7%, it could bring home PTP of £29.4m or 37p earnings, translating to £2.77 share price based on a three year average PER. This could be further notched to the upside by stripping out cash (£17m) The shares have been creeping up since April this year, and previously reached £2.25p in 06/15. NXR has been a notoriously boring and ‘slow’ company, and each share price rise has relented as stale holders have scaled down and sold their positions. That said, it is quite a thinly-traded stock, with an EMS of only 1,500 shares, so £2.5k roughly is all your quote is good for. I think the increasing earnings opportunities from the bolt-ons, the stable and steady sales growth and profit margins and its small market cap all collude to offer an increasing chance of NXR shares breaking out and heading back to previous highs. I note significant buying from the BoD with CEO spending £405k this month and major stake increases from Canaccord (9.65m held) and Hambro Capital Management (6.86m held). NXR are also held by Artemis – the same Artemis that have been stake building in RBG group. They seem adept at spotting undervalued small cap stocks See the recently rejected Stonegate offer, and Artemis' stake increases, esp since the offer was rejected). I am long of this stock, and whilst holding I reap 4.1% dividend, covered 3.8 times. This stock is for those who are happy to play the waiting game for an eventual shift in focus once acquisition earnings kick-in, or a potential take out with the company trading at less than 10x EBIT. These are my thoughts, happy for any sensible and informed dialog. rimmy.