Upcoming Events For Stars - Summer 2018Many can wonder why Stars would choose now to effect the preferred conversions, so here is a summary of upcoming events which probably factored into the decision to convert preferreds today:
1. SkyBet Acquisition Conclusion
This acquisition is set to close in about a month time (they said early Q3). It will have a huge add to the earnings line, and also to the C suite of capable team members.
2. Kentucky
Stars is quite securely betting that this gets settled just before decision is rendered or that the decision is in their favor. Having listened to the court tapes, I’d bet on the latter though only a fool would refuse a decent offer prior to judgment.
3. PA Application
It won’t be long before Stars is applying either alone or in partnership with a casino for a licence to operate in PA. This may now include sports betting, once the regulatory framework is concluded.
4. Other US States Online Gaming
We can see a growing chorus of states that are itching to get in on the huge revenue pool potential from online gaming.
The company is operating brilliantly, and we can expect further improvements as the Crownbet and SKYBET divisions continue to improve performance levels. This company has made the right bets on the right horses (pun intended) and isn’t suffering the same challenges as others. They have masterfully changed the company from 2016 on, and we can look to further news very soon. They simply felt that dilution at higher rates would be counterproductive to EPS and chose this moment, with extreme confidence in the stock price, to make the move.