NYX GAMING GROUP LTD 11 PCT DEBS V.NYX.DB

RE:RE:RE:Opinion of someone without a position

[stocksnbonds]

Very interesting posts. I do not disagree with your points. As a matter of fact, I've pointed out many of the same points. I don't post any longer, not really muchg else to add until financials are out. I do read te board at times and caughte your posts. 

One thing I would say is this...... given the organic growth which is taking place, any levelling off of costs will be produding FCF hand over fist. The institutions generally are concerned with the costs. Once they are onder control, the FCF will be there to pay down debt. I have no doubt about it. 

The key is if management is willing and able to get costs under control. Once they are profitable, there is no doubt that this is a multi-bagger. Much more potential of that than AYA. I have been an investor of AYA, IT and NYX. Made a bit on AYA and IT. Lost my shirt so far in NYX. This being said, at this point, if I were to buy into a company, I'd buy into NYX over AYA in a heartbeat given the risk/return. You can disagree but from these levels NYX can pop with a decent Q4 assuming it happens though. AYA will not double this year at all. No chance. NYX?? Crossing my fingers. 

On another note, OB was an important cog in the NYX model. They needed the sportsbook as the final verticle absent in its business model. Revenues going forward will be driven through OB for the most part, not casino. I have argued it's the casino purchase of Cryptologic and and Chartwell that put NYX in the state its in. The OnGame fiasco was part of the same silly purchases from AYA. NYX would have been better off without the AYA purchases and going at it alone in the casino area. The AYA divisions increased costs for NYX while not bringing in the increased revenues. OnGame especially was a money loser from beginning to end costing NYX roughly 3MM/Q. OB is different and will ensure tier 1 licensees. NYC can then leverage sportsbetting into other areas/offerings.

Q4 will dictate whether NYX will fly or go under $1.00. I've said it before, if NYX does not start paying down debt, it will be in danger as a going concern. They need to be profitable ASAP and top start paying down debt. For the record, NYX debt is cheaper than either AYA or IT debt. Both AYA and IT have higher interest rates on their loans. Just pointing that out.

In short, good assessments. Just providing an alternative view.

sb