RE:RE:RE:RE:RE:RE:Here Comes Asia...Hi Ron B.
I’m not a stock broker or professional so let me start by saying that I have gone against every single conventional thought on investing by putting my entire pot (pun intended) on one stock and riding it up, down and back up. The fundamentals are simple...you have a basically solid company that was able to ride through absolute cr*p stuff with its former CEO, whom i used to supposed strongly on this board, yet with time as things were divulged, I became much less a fan of. I am not judging whether he is guilty of the crimes or not, simply that enough came out that caused me to pause public support.
That said, I am an absolute HUGE fan of Rafi. He entered the company and kept it working well internally while figuring out what moves he needed to make. He took his time and brough in a new team that could take it to the next level. He made an ally of those very same investors who were going to support Baazov (and today a deal was struck for multiple locations for Asia Tour) and he comforted the existing investors with solid earnings, steady growth and an A team. So when he does moves like Aussie and UK recently, why be surprised?
For now the stock, imho, is still vastly undervalued and there are some game changers coming in near term, being:
1. Kentucky decision - after reviewing the tape of the entire proceeding, I am convinced that the appeals judges understood what the lower court judge did not. If the opposing lawyers are not offering a deal, they will lose all possible gain.
2. PA- In June, we will know Stars play in Pennsylvania which risks being as much or more about sports betting now than about poker-casino.
3. A new IR Team - they are inheriting one of the UK’s guru IR guys from SKY who will take over all group IR. Its about friggin time they trumpet their successes with an aggressive pitch, yet I was told that while Kentucky hung on them, some larger investors would not jump in, so that kind of explains the continued low key approach to IR.
None of this includes the very strong organic growth they have been seeing as a value creator. I expect a very solid Q2 report in August and amazing new guidance for 2018 with all of the new companies included.
That said, its still a risk you need to consider wisely if you are putting a lot of eggs in. A negative Kentucky ruling, together with downside from Russia and slower than expected US state sports betting might dampen growth... (I had to write that to keep this real while my cheerleading inner voice is muted for a bit)... ;)