Near the end of last year, I observed that “there was another whoopsie from Rank Group (RNK)”. As it happens, the shares are up year-to-date (although they are flat over the last year and down nearly 50% during the last five years). And I see that the average Mecca bingo hall is still having to hope about future profitability.
I appear pretty useless over the last few years when voting for the next Conservative Party leader (and Prime Minister). After all a few years back, I voted for Jeremy Hunt (whatever happened to him?!) rather than Boris Johnson and - a couple of months ago - Rishi Sunak got my vote and not Liz Truss (where an even smaller number of members agreed with me). My big issue with the latter started on day one of the campaigning when she loved up the performance and tactics of the Bank of Japan. Unbelievable…and no wonder the mini-budget of a few weeks ago was such a shocker. More on politics and the economy and markets over the next few days…but today I want to talk (again) about Rank Group (RNK).
Whilst shares in AO World (AO.) are currently up nearly 10% today as I write, the apparently “leading online electrical retailer” continues not to make an operating profit and has fallen into (admittedly slight) net debt, since corrected by a placing, I have not been a fan of this name for years and years, most recently back in early June when the stock looked a clear avoid at its then 72p share price. Despite today’s share price rise, it is now at a c. 45p share price level and still an Avoid for me. And talking about shares I have avoided for many years, how are those of Rank Group (RNK) getting along?
Back in August last year, I concluded about Rank Group (RNK) that at the then 175p share price “for me today I would AVOID”. That was wise as this morning shares in the company which has “entertained Britain since 1937” are only 82p! So why have they halved over the last ten months?
I think that I once went to a Grosvenor Casino (spent nothing hence lost nothing) but I certainly have not been to any of the other bingo and gaming opportunities offered by Rank Group (RNK). Still, back in August, I observed I'd be having another look at the company’s shares when they are ‘back to a share price in the 150s pence level again’. You can guess where the 8% share price fall over the last six months have taken us…
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