Gamble of the week: good value bet for patient investors

A combination of factors has caused this bookmaker's stock to tumble by 60% in the last year. But Paul Hill reckons there's still good value to be had here.

This time last year, Ladbrokes' shares were trading at 380p. But a series of losing bets, a lack of major sporting events, and poor winter weather have caused the stock to tumble by 60%.

The latest bizarre set of sporting upsets came when just 6% of the first 66 Premier League soccer matches played this season ended in a draw, compared with a five-year average of 25% which in turn led to a profit warning. This bad luck, combined with weaker punter activity, has forced the board into a one-for-two rights issue at 95p to raise £275m and reduce its £995m debt load.

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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.