One to watch: Ladbrokes

Ladbrokes' shares have suffered this year, by comparison with its main quoted peer, William Hill.

One reason for this is William Hill's symbiotic relationship with the gaming IT company Playtech, capitalising on its high quality online and mobile gaming services.

Ladbrokes is keen to develop its own online services but was thwarted in its recent failed bid for 888. It has now returned to the fray with an offer for Sportingbet. If Ladbrokes successfully acquires Sportingbet it will strengthen its overseas presence and, more importantly, allow it to assimilate Sportingbet's online technology and games.

In addition, Ladbrokes has been investing in its own online operations, even if some say this is rather a belated development.

Online gaming is booming even if it is still illegal in the US, for example, and does face formidable regulatory challenges in the gambling-crazy Far East.

Bookmaking is also, of course, subject to pressures on discretionary spending and the weather.

However, the shares do not look expensive.

Ladbrokes

150p -2.6p

Scotsman says BUY

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt on the suitability of this stock for your portfolio.

BROKER SNAPS

JD Wetherspoon

444p -0.9p

Broker says BUY

Analyst Paul Hickman, at Peel Hunt, recommended buying Wetherspoon shares ahead of its next trading update tomorrow. "We believe trading will have been buoyant," he said. "The company has guided that it would meet consensus forecasts if second half like-for-like sales remain positive."

Marks & Spencer

368.7p -10.2p

Broker says HOLD

Royal Bank of Scotland said till-roll data for the four weeks to 11 June highlighted a deteriorating consumer environment for M&S, both in food and general merchandise. It added: "Sales comparisons remain tough until the fourth quarter and, in our view, it is too early to see the benefits from incremental investment."