should i stay or should i go?, page-8

I bought TAH at $6.36 one month prior to the ex dividend date so I'm happy so far and prepared to hold at these cheap levels. Here's a broker's view below.

RBS Australia rates TAH as Buy 06/08/2010 12:05PM
TAH - Tabcorp Holdings Ltd
Tabcorp's result was in line with the broker. Announced increased capex for Star City for entertainment will produce a lower return, the broker suggests, but 14.5% net growth is still achievable.

The broker continues to believe TAH is cheap and has increased its target slightly to $8.17 to account for the gaming solutions business.

Target price is $8.17 Current Price is $6.76 Difference:$1.41 - (brackets indicate current price is over target). If TAH meets the RBS Australia target it will return approximately 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

RBS Australia forecasts a full year FY11 dividend of 53.00 cents and EPS of 75.70 cents. At the last closing share price the estimated dividend yield is 7.84%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.93.