Just wanted some views on what is the future for companies such as Tabcorp and Tatts.
They both lost over 20% on friday. Just wondering how business for them is going to look in 5 years time.
As far as I know Tabcorp is the major place where punters place bets on the horses and the footy, and sporting events in Victoria.
Is this going to change?
Will the company need to move into other areas? A 20 % price drop seems justified, but the stock is now on an 8% yield for the next 4 years.
So investors are basically looking at a 32% return on their cash in that time.
I am not sure what to make of these dilemma, but I do know a lot of income investors put money into TABcorp because of their big cash flows they have and return on dividends....