RE:What is Gamehost’s Future? You decide!I really like the idea. I think you have made a very good comparison to how insurance companies get very reliable cash flow to how casinos do the same. It would follow the Warren Buffett strategy of compounding and allowing shareholders to make their own dividend by selling periodically rather than paying out all earnings as dividends. I think this could be a great result as the management has been very conservative, reduced their debt and share count, etc. that it's not completely overleveraged.
There are two things I am unsure if you have considered:
Who would be doing the investing? Having a deep sense of value investing is not something that comes naturally or that you can just follow a blueprint for, so I am wondering if current management would be comfortable with doing this? I don't want them to jump into meme stocks or the next big thing as it would burn and waste our cash.
I have to imagine that the management knows that if they ever want to cash out they could easily sell the properties (like you mentioned in a strategic review). If they have a large amount of securities possibly even outweighing the cost of the properties depending on how long before they enact this scenario, it could be a detractor to selling the existing properties. A casino company isn't going to want to buy a full stock portfolio on top of the casinos and it would limit the amount of buyers if converted to cash before a sale. I think I may be overthinking this point as I suppose they could issue it as a special dividend after converting it to cash or something like that.
Very interesting idea, worth taking to management.