William Hill Could Make A Good Bet

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a gambling firm. It's a mid-cap stock with market capital between $2 billion and $10 billion. Its name is William Hill plc. Its trading ticker symbol is WIMHY

William Hill PLC operates licensed betting offices and provides sports betting services. It manages self-service betting terminals integrating retail and online businesses. The Retail segment generates maximum revenue for the company.

The company offers online and telephone sports betting services under the William Hill, Centrebet, Sportingbet, and tomwaterhouse.com brands in Australia. It operates approximately 2,375 licensed betting offices in the United Kingdom. 

William Hill PLC was founded in 1934 and is headquartered in London, the United Kingdom.

I use three key data points gauge the value of any dividend equity or fund like William Hill plc: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, first three primary keys, best tell whether a company has made, is making, and will make money. 

WIMHY Price

William Hill's price was $18.70 per share at yesterday's market close. A year ago its price was $14.66 for a gain of $4.04 per share.  

Assuming William Hill's price will trade between the range of $16 to $25 next year, its price could grow another $4.04 from $18.70 to $22.70 by April, 2019. 

WIMHY Dividends

William Hill's most recent variable semi-annual dividend was $0.50 declared in this month of April, and payable on June 22. 

Two past semi-annual payouts peg the annual amount at $1.00 for a yield of 5.3% at yesterday's $18.70 share price. 

Gains For WIMHY?

Adding the $1.00 estimated annual dividend to the $4.04 estimated year over year price gain makes a $5.04 projected gross annual gain, which will be reduced by any cost to trade these shares.  

$1,000.00 invested today at the $18.70 price buys 53 shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.19 per share Subtracting that $0.19 brokerage cost from the estimated $5.04 gross gain leaves a net gain of $4.85 X 53 shares  = $257.05 or a 26% net gain on a $991.10 investment.

Therefore, William Hill plc (whose ticker symbol is WIMHY), now shows a possible 26% net gain including a 5.3% dividend yield. 

No analysts cover this stock. The current stock price has retreated 1% from a high of $18.96 reached March 19. The projected year over year price target at $22.70 may be more or less optimistic than the market will produce.

Those forward-looking numbers were conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if William Hill plc is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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