Nick Goodway: Merlin offers a smooth ride for investors
Thursday 31 October 2013
Outlook There may well be many good reasons for investing in Merlin Entertainments, but getting a 30 per cent discount on the price of an entry ticket to Alton Towers or Madame Tussauds is not one.
It is good that private investors are being given a look in on this £3bn flotation. It is not so good that they should be tempted in with a 30 per cent discount if they make a minimum investment of £1,000.
Merlin offers it own annual pass from as little as £107 which pretty much offers even better deals. And who has not seen the regular grocery promotions getting you into Chessington for half price?
So ignore the perks and look at the fundamentals. Merlin is a well managed business with good growth prospects. And theme parks are one of the few leisure pursuits not under threat from the internet.
For once the private equity owners of Merlin are not in a rush to cash out. They and the Legoland family are only selling down 10 per cent of their stakes.
At the lower end of the 280p to 330p range, Merlin shares should go well without too many rollercoaster thrills to come.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
- 3 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 4 Why I'm on the brink of burning my Israeli passport
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
War is war: Why I stand with Israel
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...