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

RE:Please sell your shares... I'm buying them all!

[ROIcrusader]

Considering it's the top holding in his small cap fund as of Feb 28th I'd think he's bullish... see here his fund commentary from Dec 2016:

https://www.sprott.com/products/sprott-small-cap-equity-fund/ 

Demonstrating what a challenging year it was for non-resource small caps nearly all of our performance detractors were non-resource stocks (NYX Gaming, Grenville Strategic Royalty, Air Canada, and Martinrea). NYX was particularly disappointing to us as it was by far the biggest weighting in the Fund (and remains so). We underappreciated that despite trading at an attractive P/E relative to its future earnings growth rate in an industry growing by 10% per year that the corporate shenanigans perpetrated by some of its public peers would taint the space and cause investors to flee all of the public online gambling stocks. We intend to stick to our guns on this position for another few quarters to see if improved execution can cause the stock to move closer to where we see a more proper valuation however this one position did cost the Fund over 5% of lost performance on the year. Looking to 2017 the Fund has begun the year with a slight overweight (ie. higher than our typical 25%) towards energy as we are attracted to the material upside potential in oil stocks as the market begins to appreciate the degree of inventory drawdowns that will be occurring as a result of strong demand growth, falling non-OPEC supply, and the impact of the 6 month OPEC curtailment. We believe oil inventories could normalize by the end of 2017. Our dividend basket remains largely unchanged. For our alpha picks we as mentioned have retained NYX Gaming giving the position a few more quarters to start contributing positive performance. We have also reinitiated a position in Air Canada. We are compelled by the highly attractive valuation, much improved balance sheet, potential for actual free cash flow, and the fact that nearly every flight we have been on recently has been full/oversold.