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

Strategically....

[stocksnbonds]

... it made absolutely no sense for SG to make a deal without NYX major shareholders including WH. We don't know how long they were having these discussions. A deal should not have been made until all major holders were locked up. Don't know where this is headed. Gaming stocks usually have crazy stuff happen to them. 

I know some here are banking on the deal closing for obvious reasons. Much market cap has been lost. I'm of the opinion that if the deal does not close, organic growth would more than make up for the price in a quarter or so. They have the best betting software in the industry. Firms are still signing up -- see BetFair in recent news release. 

NYX is a cash cow with proper management. If this does not close, Davey will be ousted. Perhaps the company will be taken over by a syndicate of major users? Who knows. My own personal hope and I'm being greedy is that the deal does not close so I can get back into the NYX pure play. SG is a very slow growth company. It needs an online growth driver and NYX would be it. 

FYI, SG went from $12 to 48 in less than a year. NYX has WAYYYYY better prospects. As always, I'd say debt was always the issue never addressed. Davey is the wrong man at the top. He needs to go. The firm would have a very good future given it's revenue base. It simply needs to get costs under control. Very easy to do with new management. 

Will be watching from the sidelines. Not doing anything until this gets sorted out. If the deal falls through, my feeling is that it will be a blessing in disguise. Watch for November financials. Those are key, especially on the revenue side. The costs can always be chopped. Also interesting to see how badly Davey pooched the cost structure. 

Good luck folks,

sb