RE:Short MemoriesThe markets are in a show-me phase when it comes to TSG. TSG has promised the moon and the sky over the years, yet the only growth has been purchased growth via acquisitions.
If TSG can grow at 10-15% per year while maintaining margins and paying down debt, the stock will go up. If not, then look out below because there is more debt on the books than the equity is worth.
I personally do not see growth more than 10% annualized. They bought a mature business in the UK for a rich valuation. Internal legacy poker has been shrinking and they've squeezed as much juice out of that rock as they can (raising rake repeatedly, eliminating rewards, etc...).
Gray markets like Russia continue to be a challenge and are not stable. Even if those gray markets eventually turn white, it ends up being less profitable for TSG because now you have to pay taxes and also split revenue with local partners (see US and Switzerland for recent examples).
Then you have the constant threat of gaming taxes being raised.
It's a moderate growth, highly competitive business.
TSG should do ok. Once they pay down debt to $2.5 billion, then they should start paying a dividend. This is not a high growth tech stock, it is more like a tobacco stock.