Updates

Wembley - Receives several bid approaches

January 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Shares in gaming machine operator, Wembley, have recovered strongly from their low of 433p following a number of bid approaches. Over 90% of its profit comes from Wembley's US based, video lottery terminal (VLT) operation, housed in Lincoln Park, Rhode Island. Although the business has been hit by accusations that it bribed its lawyers to gain extra business, it nevertheless enjoys lucrative operating margins of 49% and has a great opportunity to grow profit by around 50% after recently winning permission to increase the number of gaming machines from 1,800 to 3,000. Broker, Altium, which forecasts earnings of 59.7p in the current year, believes that any offer for the group would be pitched somewhe ...

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