Stars Group - Ask the BoardHi,
Im thinking of sending this to the board.
Anyways wants to comment? Correct? Add?
English is my third language. Sorry....
Dear Board Members,
In recent months, the stock market has not been very kind to us and we've seen the share price plummet in the course of 12 months.
Even if as shareholders we support the boards M&A acquisitions (Skybet, etc...) and also see an improvement in IR (investors day), we firmly believe that in regards to IR, there is plenty of room for improvement. While I do not claim to have the solutions to help this stock get back on track, I believe the board should contemplate changing the focus around its IR.
Right now, the focus around the stock seems to be centered around debt and the value of the M&A acquisitions. Analysts have the right to focus on it, but TSG executives are following the bait. While debt levels and value of M&A is of the utmost importance, TSG executives should focus on their excitement for the short term and the long term potential for this company. Listening to earnings report is boring and the presentation seems to have been written by a computer. Make this personal, lively, and EXCITING!
A few weeks following the announcement of the FOX-TSG partnership, the foxbet.com website was up online and invited people to be part of the waitlist. Although this was a good idea, I believe, things could've been done slightly differently to create the sens of excitement. We should have given an incentive to invite people to be part of the waitlist and hence, increase the activity, excitement about this new partnership (Ex; get an extra bonus if you are part of our waitlist and sign up to our FOXBET app once launched etc...)
Marketing could then have started on social media and other platforms back in MAY, in all the regulated states. On the last IR, you could've then given us a sens of the excitement / waitlist.
Additionally, to help create this uforia/excitement, Rafi or Robin should find a way to appear on CNBC or Bloomberg or articles published in any financial new organization, website, journal, etc...Someone at TSG should be focused on making sure TSG executives have regular appearances on major media networks at least once or twice a year.
Bottom line, although debt levels are high, this company has good FCF and the future is bright. Excitement around the future is what will turn this around; just look at Uber, Tesla, WeWork, Lyft, etc..that lose BILLIONS every year and still created tremendous shareholder value with the excitement they created around the future of the company (and that hopefully, ONE day, will be making money).
At the current price levels, Board Executives have the moral obligation to purchase common shares on the open market. If board members believe in the potential, there is no reason for them no to be purchasing at these levels. However, if they are unsure and worried to "risk" their money, then they should definitely not be part of this company. We need leaders, not followers.