Seven Aces Limited - Ordinary Shares ACEXF

RE:RE:Wtf is happening here?

[Wonderwon]

The MD&A and fs made it pretty clear they didn't make any money on the Lucky Bucks operation for the one month.  Obviously you cannot extrapolate the earnings when it was private (i.e. Anil could show what ever profit he wanted) to what it will cost Quantum.

The risks as I see it are:
1. US is on brink of a recession which translates into less disposable income to waste on the games (ask Sheldon Adelson what happens to gaming stocks during a recession)
2. The gov't is increasing its take every year and at any time could come in and pull the plug on LBI and decide to do it themselves.  If it is such a cash cow with no expenses why wouldn't government split with the store owner?  What is the need of Lucky Bucks?  In Canada the government runs all VLTs taking almost all the money.  I don't see why Georgia wouldn't do the same.
3. Growth is difficult because almost every store have machines (i.e. very difficult to obtain new locations)  Growth will have to come from users (see point 1)

For all the pros about the business (i.e. easy to run, "cash cow", high margins) there are just as many risks.

And please people stop saying "we will go up when the selling stops".  Who says the selling has to stop?