Share tip of the week: a punt on online gambling

This gambling firm is one of the few with the scale and reputation to succeed in this highly competitive industry, says Paul Hill.

The latest batch of money printing by the US Federal Reserve (also known as QE2) has sent stockmarkets across the globe rallying. Faced with buying frenzies like this, it can be hard to keep your cool. So the most important advice I can give investors now is this: don't get suckered into buying any old rubbish, just because everyone else is piling in. Stay focused on undervalued firms with positive cash flow, sound balance sheets and strong fundamentals.

Take Playtech, the world's largest listed gambling software supplier. Its IT platform offers online, TV and mobile games, including casino (67% of sales), poker (20%), bingo (7%), and sports-betting (6%), which are promoted via its partners within Europe (62%), Asia (32%) and the rest of the world (6%).The games are sold to blue-chip clients, such as Betfair, Paddy Power and Ladbrokes, on a revenue-sharing model.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.