There is an old market adage that suggests investors "back the jockey and not the horse". There is some irony in that adage as it applies perfectly to Phumelela Gaming & Leisure — which certainly seems to have stronger legs at this point in the race than its more illustrious countermates like Sun International and Tsogo Sun.When Phumelela listed in 2002 (at 50c/share!) the business was centred mainly on horse racing and associated tote betting. As things stand today Phumelela — thanks mainly to CEO Riaan du Plessis being able to jockey well for position in lucrative niches — is a powerhouse in tote sports betting, with lucrative slices of the fixed odds market via Betting World outlets as well as the limited payout machine market. Phumelela has also saddled up in a number of key international markets.The core horse racing business is a substantial drag on Phumelela. In the year to end-July the horse racing segment recorded a R99m loss at pretax profit level. By contrast, tote sports...
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