UK 03:34 Sunday, 8 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
One the golden rules of investing is the one which says that companies whose profitability is dependent on politics and government regulation should never be too highly rated and even then, prepare for possible disappointment. Such now is the case of Ladbroke (LAD) shares. To its problems is added the fact that the government plans for the greater taxation of gambling (or ‘gaming’ as some lime to call it.) Technology is changing the economics and commercial opportunities for betting companies, as it is changing much else. And wherever technology goes so too does Her Majesty’s Treasury and with tax revenue collectors following up behind. That must make nonsense of those early cash flow models around at Ladbrokes, carefully and thoughtfully built to anticipate future cash flows if and when the company starts its recovery.
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