RE:RE:Hype and KneeJerk Reactions Daily Are Just Diddlingsolarman2013 wrote: Following your points:
2) There was no need for this knee jerk reaction to dilution as the dilution was announced months ago when they put out the original press release. The main issue is HOW they announced this issuance of stock. Again, a lawyer owns the g0d damn IR department at Stars.
3) The unreasonable pessimism behind that negative report negates its value no less than the analyst calling for $60. Now you know I'm an optimist and I think that Stars has reasonably shown itself very adept at derisking debt and paying down. I believe that the valuation to the purchase will seem amazing once they announce the first half SKYBET results and expected contribution to EBITDA for second half.
4) Kentucky not only further de-risks the stock in the reality of things, it allows large banks to jump in without that negative undertone and just when the stock is waffling between $47-50.
Its going to waffle for a while, unless we have some unexpected good news, such as Kentucky or other. Very odd that we've heard nothing about the Russian May decision which seems to have come and gone without any effect on Stars russian players.
2) 14% of the market cap to be sold is a significant dilution. The purchase of Skybet was a defensive move by Rafi and the market lacks suitable information to determine the intrinsic value of TSGI post aquisition for the next few quarters. It certainly should not have been able to print money with this acquisition which was at first glance an expensive defensive acquisition.
3) The unreasonable part of the Veritas report is their lowering of adjusted EBITDA based on some things I do consider one time charges. Also their pessismistc view based on a lack of detail from managment on growth potential and synergies from Skybet. That is hardly reason to ignore their analyst report just because it contains a view that contradicts your cheerleading. They have put out several reports post Skybet Aquisition and are worth reading.
4) You don't know the outcome of the case, many assume it will be positive, that is far from certain. Whether bigger firms increase demand for the stock post Kentucky is also dependant on how well management does in the next two quarters.
While I am waiting to sell some stock post Kentucky ruling, weathering this market storm may well be painful for TSGI holders if the markets continue to plummet because of Trump and his stupid protectionist policies.