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TAH - Tabcorp Holdings

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S.P. still at 93 cents.
That must be about what Vangard paid last week for over 100 million shares , taking it to a 5 % holding of TAH's capital. ( Not allowed to go beyond 10% )

Doom and gloom. Sky falling in. Etc , etc.

But the pro's don't waste a good buying opportunity, to top up.
 
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i added extra ( doubled the original holding ) after the TLC divestment ( but before the recent div. ) i also participate in the DRP

i consider this a 'safe haven ' ( SOME folks will accelerate their gambling in desperate times )

doom and gloom ( without imploding the company ) is a good scenario for this sector
 
dyna said:
That must be about what Vangard paid last week for over 100 million shares , taking it to a 5 % holding of TAH's capital. ( Not allowed to go beyond 10% )
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I'd be cautious about drawing any inferences the Vanguard Group being a substantial shareholder. TAH has been in the ASX 300 index for years but in VAS accounts for only 0.1% of assets which is Sweet of FA. A rebalancing of the weight and purchases across other Vanguard products does not mean Vanguard brought 100m shares on a particular date. Even the purchase of say 5m across all products in the Vanguard Group could cause this and just as easily the sale of 5m shares across the group could well mean the group won't be a substantial holder.
 
Firstly, disclosure: I bought a parcel of TAH today for $1.025

Why, I can hear people wondering. Is he crazy? Hahaha, no. Not that I know of. :p

Well, let's see. Following the demerger from TLC, TAH has looked interesting, and cheap.

If we take a look at the 2022 AR, revenues from continuing operations are down 4.3% YoY. Additionally, we can't just ignore the fact that we have negative EPS for both 2021 and 2022. However, if we look at it purely on % terms, EPS albeit negative, has increased 27.4%. Moving in the right direction.

Now, current ratio is lower than I would really like with current assets being about half of TAH's current liabilities. However, the company did complete some debt funding in December 2022 for A$425M which is due to settle in March '23 (both 7 and 10 year notes were issued). This eases my minor concern regarding the above as the announcement referencing the debt funding is to be used to reduce existing indebtedness, among other things.

In 2022, dividends totaling 13c were paid to shareholders which gives TAH a dividend yield at the price I purchased for today of 12.68%. Now, we don't know if dividends will increase, remain the same, decrease or be cut all together. And, truth be told, historical dividend payments have not been... well, stable, to say the least. However, I am hoping with new management on board we can get some stability and good growth potential going here.

2022 FCF per share was 0.2025c, so technically speaking, TAH could sustain last years previous dividends totaling 13c and maintain a dividend payout ratio of 64.20%. Not outrageous at all.

And, here's the kicker for me. Enterprise value or EV, which for those unaware at home playing along is Market Cap + Total Liabilities - Cash and cash equivalents. Basically, the price to purchase the entire company, should you have enough money and the inclination to do so.

Market Cap: $1.04 * 2,225,700,000 = $2,314,728,000
Total Liabilities: $1,337,600,000
Cash and cash equivalents: $199,400,000

EV = $3,419,542,500
EV per share = $1.55

So that means that at current prices of $1.04, TAH is trading at a 32% discount to its 2022 enterprise value.

Bargain.
 
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Cam019 said:
Firstly, disclosure: I bought a parcel of TAH today for $1.025

Why, I can hear people wondering. Is he crazy? Hahaha, no. Not that I know of. :p

Well, let's see. Following the demerger from TLC, TAH has looked interesting, and cheap.

If we take a look at the 2022 AR, revenues from continuing operations are down 4.3% YoY. Additionally, we can't just ignore the fact that we have negative EPS for both 2021 and 2022. However, if we look at it purely on % terms, EPS albeit negative, has increased 27.4%. Moving in the right direction.

Now, current ratio is lower than I would really like with current assets being about half of TAH's current liabilities. However, the company did complete some debt funding in December 2022 for A$425M which is due to settle in March '23 (both 7 and 10 year notes were issued). This eases my minor concern regarding the above as the announcement referencing the debt funding is to be used to reduce existing indebtedness, among other things.

In 2022, dividends totaling 13c were paid to shareholders which gives TAH a dividend yield at the price I purchased for today of 12.68%. Now, we don't know if dividends will increase, remain the same, decrease or be cut all together. And, truth be told, historical dividend payments have not been... well, stable, to say the least. However, I am hoping with new management on board we can get some stability and good growth potential going here.

2022 FCF per share was 0.2025c, so technically speaking, TAH could sustain last years previous dividends totaling 13c and maintain a dividend payout ratio of 64.20%. Not outrageous at all.

And, here's the kicker for me. Enterprise value or EV, which for those unaware at home playing along is Market Cap + Total Liabilities - Cash and cash equivalents. Basically, the price to purchase the entire company, should you have enough money and the inclination to do so.

Market Cap: $1.04 * 2,225,700,000 = $2,314,728,000
Total Liabilities: $1,337,600,000
Cash and cash equivalents: $199,400,000

EV = $3,419,542,500
EV per share = $1.55

So that means that at current prices of $1.04, TAH is trading at a 32% discount to its 2022 enterprise value.

Bargain.
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i originally bought into TAH in October 2011 ( @ $2.49 ) , added some more via the TTS merger , and then added some more in May 2022 (@ 96.5 cents ) post TLC spin-off .

am not confident TAH can maintain the div yield in the near term , but so far the return on investment hasn't been that bad ,( even if it was a bit bumpy )

it would be nice if TLC can shine as well
 
Tabcorp Holdings announced Group Revenue declined by 6.1% compared to the pcp.
Wagering turnover declined by 0.9%, while Digital turnover performance defied softer market conditions and grew 1.0% compared to the pcp.
Wagering and Media revenue was down 5.4%, reflecting the adverse impact of lower fixed odds yields due to Racing and Sports results


( i hold TAH )

hmmm , maybe the Oz economy is in worse stress than i estimated ( this isn't resisting inflation very well ... so far )
 
High-interest rates, rising mortgage costs, and inflation have combined to take a significant toll on the gaming market, foreshadowing weak racing seasons in Sydney and Melbourne over the next month. This comes after Tabcorp surprised investors with a rare trading update that revealed a decline in revenues across its divisions during the first three months of the new financial year.
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so much for 'recession proof' and inelastic
 
i don't expect TAH to be 'recession-proof ' but the last hope for the financially distressed

ravaged , YES but crushed , maybe not after all they are selling a service ,and Aussies will bet on two flies climbing wall ( some of our ethnic Asians as well ) this is a 'golden goose'for state governments the smart ones will understand that
 
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