RE:RE:RE:RE:Agree with Narrishkeit (sp) y’all believe/tr fool articles!!solarman2013 wrote: I don't think this board affects the price either. I have a lot riding on this stock and therefore I share whatever information I deam worthy of sharing that comes my way. The impact of debt diminishes when you have a global group which combined had EBITDA of $900M, and that was LAST year!
I have a subtanstial concentration of my portfolio in this stock (in the millions) so so we are in a similar boat.
This group is more than capable of absorbing this level of debt, responsibly bringing it down with regular payments through substantial cash flow. The best move was to take on debt and obviously they have a very adept CFO who not only gather investment but also reduced costs of the ones that existed before. Not taking anything away from Sebag, yet this new one is a cut above.
The cash flow from Stars can cover the debt service (300 - 350million?) no doubt. But they bought Skysports at 14X premium EBITDA with 120 million of synergies already priced in which is a rediculous high price(Amaya was able to buy at ~2.5billion for sky 2 years ago) and they are leveraged hard now. I don't see how they can leverage further at those prices when they have to pay 4 - 5% in interest.
I watch this company like a hawk. I am not so sure yet about their deal in Asia. Seems like a partner focused on Philippines and Macau and I don't therefore see value beyond, unless they know something that I don't.
I don't and that is why I have asked my broker for some legit analyst reports(not sure there are any recent ones) to determine a more realistic floor for this stock.
The upside short term (Kentucky Ruling, States Opening Up Sports Betting, Sky Sports synergies etc.) is definitely there, as well as Long Term (Asia Market, More States, Cross Sell) but until significant news comes out this stock will be quite volatile with the market.
We could see a great uptick from the Kentucky ruling if it opens up big US players waiting in the wings to consider this stock(if they exist) and can't because of the 900 million hanging judgement even though the liability is really only 30 million at worst at this point.