RE:Desjardins sees "risk in the name"I have a really similar view with him. The leverage is still high and the last quarter was bad on the poker side. But the casino was way stronger than I was expecting and they generated a lot of free cash flow(the most important element for me). I think the ajusted earnings per share for 2017 and 2018 will be higher than his estimates.
I hope they will wait at least 9 months to make an acquisition to pay down more debt and this acquisition need to be small not something crazy with a lot of leverage again.
I was happy to hear during the conference call that the revenue in July were really strong in poker and they are expecting some growth during the second half of the year in that vertical. Also the CFO said he wants to bring down the debt level around 3ish times the net debt to EBITDA that's more conservative and I like that.
Now what I want to see for the next 12 months:
1. The long term debt under 2B.
2. Revenue from Poker flat or growing a bit.
3. The casino and sportsbook to grow at more than 15%.
4. If the stock is still cheap 9 months from now start buying back the stock.
5. The end of the Kentucky litigation.