Australian (ASX) Stock Market Forum

TAH - Tabcorp Holdings

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It's Snake Pliskin said:
I got ripped up on the big nasty open gap with TAH. Any profit I had on Wednesday was gone by Thursday. Now out.
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Hi, what do you think about the likelihood of unwinding of some positions on account of latest earnings reports and the outlook being quite uncertain for now with TAH? Is there great potential for shorts on this market or does the stock sit to reflect all this already? Interested in your opinions, it seems to have several important factors against it at the moment...
earnings down.

- outlook uncertain
- margins reduced
- government regulation problems, upcoming license costs.

Interested in thoughts.
 
Call me crazy, reckless, catcher of falling knives ... but I've placed a buy order where I thought support might be sitting. Just got filled at $6.67.
Next Tuesday, August 10th, TAH will go ex 25cFF dividend. That'll possibly cause it to drop even lower, but usually, dividends are quickly regained and forgotten. RBS Morgans, while lowering their target to $8.09, still seem to be quite Bullish on TAH - especially considering the high yield. Even 55c annual dividend, grossed up to 79c, beats term deposit rates by a mile.

TAH n 06-08-10.gif
 
pixel said:
Call me crazy, reckless, catcher of falling knives ... but I've placed a buy order where I thought support might be sitting. Just got filled at $6.67.
Next Tuesday, August 10th, TAH will go ex 25cFF dividend. That'll possibly cause it to drop even lower, but usually, dividends are quickly regained and forgotten. RBS Morgans, while lowering their target to $8.09, still seem to be quite Bullish on TAH - especially considering the high yield. Even 55c annual dividend, grossed up to 79c, beats term deposit rates by a mile.

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I like fib level retracement / reversal trades but not so much when the fall was swift and caused by fundamental news.

On the dividend play - sometimes buying in after (say 1 week) the dividend is paid might actually get you in at a cheaper price. That has been the case with most of the recent utilities (APA, DUE etc) going ex-div.

On the positive side, TAH is probably still considered a true bluechip with good yield + potential takeover target by some.

Good luck with the trade.
 
mr. jeff said:
Hi, what do you think about the likelihood of unwinding of some positions on account of latest earnings reports and the outlook being quite uncertain for now with TAH? Is there great potential for shorts on this market or does the stock sit to reflect all this already? Interested in your opinions, it seems to have several important factors against it at the moment...
earnings down.

- outlook uncertain
- margins reduced
- government regulation problems, upcoming license costs.

Interested in thoughts.
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mr. jeff, I have no idea. The gap open destroyed my original intentions.
I'll be watching the technicals.
 
Gambling giant Tabcorp (TAH.AX: Quote) has taken steps to placate the concerns of its key shareholders by announcing a plan to separate its casino and wagering businesses. Tabcorp chief executive Elmer Funke Kupper on Monday said the board had been considering the split for more than two years. Tabcorp's casino business will be split from its wagering, gaming and Keno businesses, which will continue trading as Tabcorp Holdings. Page 1.


http://www.finnewsnetwork.com.au/archives/finance_news_network16041.html
 
Does anyone know if there are plans for dividends given that they will be spending hundreds of millions on renovations?

Also, what's everyone's opinion on a fair SP of TAH after it spins off the casinos?
 
No one watching this? For every TAH share you own, you'll get one share in Echo Entertainment (the casinos after the de-merger), probably why the SP has been rising steadily recently.
 
Tyler Durden said:
No one watching this? For every TAH share you own, you'll get one share in Echo Entertainment (the casinos after the de-merger), probably why the SP has been rising steadily recently.
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After the demerger the share price of TAH will drop by that amount (all else being equal), although the market usually mark up the demerged companies.

Look at Fosters yesterday for example.
 
skc said:
After the demerger the share price of TAH will drop by that amount (all else being equal), although the market usually mark up the demerged companies.

Look at Fosters yesterday for example.
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Yes but still seems like a good deal. Just sell the TAH shares immediately after the cutoff date if you don't want long term.
 
Tyler Durden said:
Yes but still seems like a good deal. Just sell the TAH shares immediately after the cutoff date if you don't want long term.
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When is that cut-off date please TD? I hold TAH but have been slack following this deal...

Thanks

Rick
 
Tyler Durden said:
10 June 2011 :)
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Thanks TD. given that the demerger has already been announced why would the TAH share price go down? Wouldn't the demerger influence already be factored in?

Someone told me, for what it's worth, that the Stock Radar newsletter considers TAH good value.

Rick
 
Muschu said:
Thanks TD. given that the demerger has already been announced why would the TAH share price go down? Wouldn't the demerger influence already be factored in?

Someone told me, for what it's worth, that the Stock Radar newsletter considers TAH good value.

Rick
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The way I see it, people want it on 10 June 2011 so that they can get the Echo shares - after that they'll dump it. The basic of this premise is that Tabcorp (post-demerger) + Echo > Current Tabcorp.
 
Muschu said:
Interesting.. But how can Echo [EGP] shares be listed as trading today when holding statements for eligible shareholders are not issued until June 20?

Thanks

Rick
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it is trading on a deferred settlement basis by the looks of things
 
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