RE:RE:RE:RE:RE:RE:I'm out boysIf you take reference from past, it does trade lower and goes back to the same levels.
This time it's different. consider these points
- Debt took TSG down, they had no easy way to pay it down quickly
- Dilution cause debt when they acquired sky bets, but this time dilution is helping them pay down debt. This is a good dilution.
- Fox is huge brand, and it's everywhere. No more single deals with local casinos or states. Every state where sports betting is legalized is their market now.
- Apps and Web is the future, no reliance on land based casinos
- Fox has option to purchase upto 50% stake in TSG, this is huge. When ad if this happens, Fox will help pay down debt faster. This is a great scenario for TSG
- Association with Fox gives credibility to TSG, can lead to more institutional buying.
- The Q1 ER is just around the corner, people might even overlook how they did, the story now is of the future.
Till last few weeks I was very very happy selling/shorting the spikes. I am changing my strategy to accumulate the dips now.
This deal is a game changer. FOX paid yesterday's price for fhr deal, becuase TSG needs for more than Fox needs them.
But IMHO it's a win-win deal.
Of course, with market backdrop of trade war fears, TSG did not keep the yesterday's PM gains. But its great to be up 15% when every other stock was bleeding.
GLTA