Me, my two visits to a casino and the Rank Group share price shocker

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).

Rank (#RNK) – Q1 LFL net gaming revenue +2% YoY, notes costs and consumer spending pressures

Rank Group shares remain an Avoid for me

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?

Rank Group shares are for suckers only

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?

Rank (#RNK) – Grosvenor trading and continued inflationary cost pressures profit warning

Even if you love bingo I would continue to avoid Rank Group shares

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…

Rank (#RNK) – Q1 update, currently expects FY EBIT of £50m-£75m

Rank Group (#RNK) – HMRC not to appeal slot machine VAT refund decision, group expects c.£80m

Prefer Rank Group shares or a game of bingo?

It was about two years ago when I last talked about Rank Group (RNK) shares. The basic gist back then was that I thought shares in the Grosvenor and Mecca casino, bingo, gaming machines and much more owner were ‘worth a punt’. Given the then c. 160p share price almost doubled by early 2020, that worked out pretty well. However, today the shares are back at a 175p share price (and via a sub 100p level nine months ago). So how do I feel now about the company that has been ‘entertaining Britain since 1937, by bringing people together for fun and entertainment’?

Rank (#RNK) – FY swing to loss, argues “encouraging” recent progress

Rank (#RNK) – Q3 LFL net gaming revenue -76% YoY, UK venues set to reopen from 17th May

Rank Group (#RNK) – raises £70m at 90p per share, including via PrimaryBid

Rank Group (#RNK) – “confirms it is in discussions with its advisers regarding a potential equity issuance of up to a maximum of 19.9% of its issued share capital”

Rank (#RNK) – agreement to sell its Belgian casino business for £25m

Rank (#RNK) – “Market update” including on Mecca bingo reopenings, 12 to remain closed as “assess their ongoing viability”

Rank (#RNK) – COVID-19 update including “now estimate that our monthly cash outflow rate will be reduced to approximately £10m from May”

Still gambling on Rank Group

I have written a couple of articles on the Mecca Bingo and Grosvenor Casino operator Rank (RNK), concluding last time that 'Rank is not so dank after all...the share still remains below the (interesting) 160p level. Worth a punt!'…

Rank Group (#RNK) – FY adj. EPS -1%, DPS +3%, “pleased” with H2 performance & “optimistic about 2019/20 outturn”

Rank (#RNK) – “advanced discussions” for a 151p per share offer for Stride Gaming (#STR)

Is Rank really so dank?

I could talk about market heavyweights Diageo (DGE), Royal Dutch Shell (RDSB) or Unilever (ULVR) but frankly none are interesting or compelling...although no doubt dividend munchers are still getting frothy about them. Instead I turn again to the bingo, casino and more emporium Rank (RNK) – which I last wrote about in August, observing 'below 160p as a "have another look" level still feels correct. No debt, cashflow, well-known assets...smell the private equity or industry consolidation potential'…