Tabcorp upgrading facilities - In my opinion a waste of money
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Tabcorp Holdings Limited (ASX:TAH) , is going to upgrade its facilities in New South Wales. Tabcorp management noted that the company will spend $A50 million over five years to revamp its TAB retail network across NSW. Tabcorp has just finished a $A53 million refurbishment of its Conrad Jupiters casino on the Gold Coast in Queensland.
The management is planning to derive more money from its Australian assets. The refurbished TAB outlets in Victoria are taking in far more money than the ageing facilities in NSW. On 19 December 2006, shares in Tabcorp dipped by $A0.14 to $A16.75
This could be seen to be a good thing but I think it is money being wasted as tabcorp is failing in the growth area which is internet gambling. Betfair and bookmakers are growing a rate far higher than tabcorp and I believe this trend will continue into the future. tabcorp needs to fight betfair on the same feild by offering a similar marketpalce which punters can lay or bet selections. This would attract far more revenue than upgrading some NSW tab outlets.
Good Luck investing
2 comments:
If you look at Tabcorp's Victorian Operation after it's refurbishment and refit program, the profit growth is 4 times better than that of it's NSW operation which used to be run by Tab Limited. As for Betfair and Centrebet's Internet operations, they are not Tabcorp's prime markets, and, as a punter, nor do I think they should be. I am making a very handsome profit from my Tabcorp shares as it is.
Also, I would have more respect for you as an investment adviser, if you could spell correctly and use proper punctuation.
I agree that the refurbishment has helped tabcorps victorian operation and it will help in NSW.
The main customer of the TAB is the drunk and/or older people who do not know how to use the internet. The younger generation is not using the TAB and this is where long term growth can be sourced. A betfair style market within the TAB would generate a significant profit compared with the refurbishment of the NSW operations. It would allow drunks to "lay" horses as well and I think you would find they would spend more money laying than betting horses (because it is percieved to be easier).
I agree I should use the spell checker but sometimes forget.
I don't think of what I write as advice. Its more just my thoughts on particular values of shares and articles on shares. Its also a following of my actual thoughts on shares I own. Also I post to show that value investing is a smart way to trade and in my opinion is superior to a purely technical point of view.
As far as performance though I have made 35% this year with only 1 losing trade that is still open (and only down 4%).
Good Luck Investing.
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