Although when the mainstream press gets on the back of a company as being a potential M&A situation it is the kiss of death, in the case of William Hill, it may be the case that at least following technical rules we have a stock which is genuinely in play. The reason for the relative enthusiasm stems from this week’s flourish through the 200-day moving average, on the daily chart at 160p.
It also helps that the shares have made a clean clearance of the former April resistance at 169p. At least while above this on an end of day close basis we have the makings of an interim rally for the shares. The favoured destination currently is for a push towards the top of a rising trend channel from November, with its resistance line projection pointing towards 210p. This makes for a 1-2 months timeframe target at least while 169p is held.
From a fundamental perspective there are a couple of things to hang your hat on should there be no corporate moves on William Hill. For instance, we are being told of an “aggressive” expansion into the U.S. and at least the pain associated with FOBT’s as reported in this month’s H1 results was no worse than expected. Indeed, it could very well be that it is the Stateside action here that means this perennial dog finally has its M&A day, as is being suggested by some.