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Integrity Gaming Corp. V.IGAM

"Integrity Gaming Corp is a provider of gaming equipment and project financing to owners, operators, and managers of casinos and other regulated gaming venues. The company focuses on U.S tribal gaming markets where it leases and distributes slot machines, electronic table games, casino, and bingo equipments."


TSXV:IGAM - Post by User

Comment by shorelunchon Dec 30, 2016 6:45am
122 Views
Post# 25652731

RE:Ending 2016 on the bid

RE:Ending 2016 on the bidFrom Note 11(c) of the Q3 FS: "As of September 30, 2016, one of the casinos was in arrears with two (2) monthly lease payments totaling approximately $281,000. As of September 30, 2016, total amount of receivables from that casino was approximately $426,000, which to-date have not been collected. The Company is in discussions with the casino to arrange collections of the overdue amounts. The finance leases receivable as of September 30, 2016 are not considered to be impaired, therefore no allowance for uncollectible minimum lease payments has been recorded in these financial statements." Not even mentioned in the MD&A, which is chessy (ie simply burying it in a note to FS). The issue to watch is whether this is one-off development, ie a blip, or part of a trend, ie entering into favourable contracts with smaller (desperate) native Casinos that don't have the ability to perform those favourable (for PYD, stiff for the casino) terms over the long haul. And exactly what is PYD's underwriting process ? There seems to be a bit of a history early on in their existence of making loans that go bad. Also, Macy did stumble: no announcement on a new deal before y/e, despite clearing teasing one would be announced. They've had a busy year and much has been accomplished to admire, however, as a Venture Exchange company they are expected to grow, grow quickly and not stop growing quickly. Need to watch closely and also get them to improve the quality of their quarterly concalls. Merely regurgitating the quarterly press release is simply not where it is at from an IR perspective and on that note, their IR firm appears to be slightly better than useless (and expensive). The quarterly concalls need to be meaningful and insightful to generate investor interest and hopefully excitement. Red Fisher
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