We had previously warned that the gains recorded by UK gambling stocks in 2019 were unlikely to be repeated in 2020.
Having said that, even we could not have forseen the catastrophic impact that the coronavirus was going to have on
the shares of these companies. Only two weeks ago people were piling into William Hill on the back of analyst chatter that shares in the
company were set to double on the back of US betting market ventures. That all seems like a long time ago now, with William Hill
now having given up all of 2019's gain and trading down an astonishing 85% since January 2. Is the £10bn Flutter-Stars gambling deal now in doubt?
With shares in Flutter now down 40% YTD at the time of writing the market is suggesting yes. As ever there will be many prepared to bet that the sell off is now overdone and that the bottom is now in for these stocks and, indeed, in five years time we may look back at this page and see that the current values represented the bargain of the century.
You can pick up William Hill this morning at 0.30 down an astonishing 85% YTD and GVC Holdings at 305 (down 68% YTD). William Hill at 30p - will we really be saying that in a year's time. We will come back and see.
UK Gambling Stocks on the Morning of 19 March 2020