♣️ A tightening chart?

I do not accept payments from listed companies to talk positively about them. These posts represent my opinion only - nothing is a tip or investment advice. Any existing position or exposure is disclosed.

Rank Group (RNK) is a company that’s been on my watchlist since after the Budget.

Why?

Because there were no big extra taxes for gambling companies.

This was expected, given that gambling companies are easy targets. Nobody is going to feel sorry for a gambling company that now needs to pay more tax.

Here’s the chart.

This looks like the stock is building a scruffy stage 1 base. So it could be of interest for a breakout.

Rank Group dates back to 1937 and operates a diverse portfolio of gaming venues and online platforms, offering customers engaging experiences across various channels.

Rank's operations are segmented into several key areas:

1. Grosvenor Casinos: As the UK's largest casino operator, Grosvenor Casinos offers a range of gaming options, including table games and electronic gaming, across multiple venues.

2. Mecca Bingo: A well-known bingo operator in the UK, Mecca Bingo provides both in-venue and online bingo experiences, catering to a broad customer base.

3. Enracha: Operating in Spain, Enracha offers bingo and electronic casino games, serving the Spanish gaming market.

4. Digital Channels: Rank's online platforms extend their gaming offerings to digital audiences, providing casino, bingo, and slot games accessible via the internet.

When this RNS was published back in May, the share price rallied sharply to 96p.

It then fell back because of the upcoming election and then budget. But so far - I’ve not seen anything that is saying there will be any changes to these reforms.

This is a positive potential catalyst for Rank (I say potential as can’t find any changes but also nothing confirming) and a potential driver of profits.

And before we continue, a quick thank you to our sponsor Nike who helps towards the upkeep of this newsletter.

Conquer Winter in Style: Best Men’s Sneakers from Nike Air Max.

Winter is here, and it’s time to elevate your look while staying warm and comfortable. The Nike Air Max collection is perfect for the modern man ready to tackle the season. From the edgy Air Max Plus to the versatile AM1, these sneakers combine style with features designed to keep your feet happy all winter long.

Whether you're tackling holiday shopping or celebrating with friends, these kicks are your perfect companion. Find your ideal pair and effortlessly elevate your winter wardrobe this season.

Treat yourself or a loved one to a stylish pair from the collection this holiday season.

Shop the Men’s Collection

I also can’t find any recent broker research on Rank - which means we’re left with SharePad’s forecasts.

If the business achieves these FY25 targets then we’re currently looking at a PE of <12 for what is a company that has the potential to grow quickly.

The chart is also attractive too.

We’ve got big volume at the lows in August.

This is significant repeated support, and 90p has also been tested five times.

That to me says this is significant resistance.

Rank is SETS traded, which means you can place orders directly onto the order book, and take advantage of Stop Limit orders.

The 50 EMA (black line) looks to be tightening up too, so the risk can be minimal.

Remember, you can use my position size calculator to work out how many shares you might want to buy.

And whenever you’re ready..

There are three ways I can help you.

1. If you’re wanting to profitably trade UK stocks then I’d recommend my entry level course:

Spread Bet Accelerator: The exact system I use to trade and get you to your first £10k in profits. Use the code GIVEME99 for a subscriber discount.

2. Want more trading ideas and a clearer view of the markets?

Buy The Bull Market Premium: Free 30-day trial covering potential trades and insights as a professional trader. You also get priority access to live events and offers.

3. Want to work with me personally?

Alpha Trader is where I work closely with traders who want to get to a professional level.

We have our own channel, meet up, and have fun trading and learning [closed].

Speak soon!
Michael