The Rank Group PLC Pegged As A 2008 Stock To Watch

As 2008 quickly approaches, The Rank Group Plc is pegged as the stock to watch according to trade analysts. In fact, today they were named as the 2008 choice for the leisure sector by The Daily Telegraph. This leading European gaming group is headquartered in the United Kingdom and is listed on the London Stock Exchange as RNK LN. Their main focus is providing their players with bingo clubs and casinos with the gratuitous addition to their online gaming and bookmaking services.

A few of their established gaming brands feature Mecca Bingo, Grosvenor Casinos, Blue Square and Top Rank Espana. In regards to Mecca Bingo, The Rank Group faced conjecture bids towards a takeover from Duke Street Capital, a private equity group; because of this, The Rank Group's previous share price of 230 pence has reduced to 90 pence. The reasons for this dip in share price is twofold, the first being the UK smoking ban at the beginning of 2007 and the second being this past September's new Gambling Act that had highly income-producing gaming machines being removed from their establishments.

Duke Street Capital's latest speculative bid comes right off the heels of Harrah's Entertainment, Inc. (United States) offer to sell London Clubs International to The Rank Group. What would have resulted in return from last November's bid was a 28% stake for the expansion of The Group. Harrah's Entertainment have been examining their potential options in the European gambling market hence their recent prospect bid for The Rank Group.

In line with analysts' upcoming predictions, strategically speaking, CEO Ian Burke had this to say a year ago, "We have established clear plans to capitalize on the changes taking place in the UK gaming in order to generate sustained growth in profits and improvements in our return on capital employed." In his statement, Burke went on to say, ".....we believe that our considerable operating experience an out strong portfolio of gaming assets will enable us to take advantage of the long-term growth in the gaming market."

In an article posted in the UK Sunday Times whose information came from an unknown source, Burke, upon receiving a written proposal for acquisition from Duke Street brought the proposal to Rank Group's Board of Director which had the acquisition proposal being denied. All ongoing discussions have been ceased.

According to bankers at Morgan Stanley, The Rank Group has a market value of £351 Million which is equivalent to $700 Million US Dollars. The Group remains optimistic that their 2007 group operating profit will be in alignment with the expectations of the market; especially considering recent sales of their hotels, casinos, music collectibles and their Hard Rock Café's to Florida's Seminole Tribe.