RE:RE:RE:RE:vote 'against' this mergerinearly123 wrote: Look at these guys - Solarman, nk et al. - confirming what i've said all along. Stars is the stronger company in this covid environment. It is not Flutter that will save Stars, but Stars that will save Flutter. Vote against this merger and take back our company from the self serving men now running it and would sell it out. Keep Stars' inherent wealth for ourselves, the Stars' shareholders.
BOTH Flutter and Stars have shown unexpected positive results in Q1. The combined company will be a monster. This has nothing to do with one being stronger than the other although an argument can be made that Flutter got the better of this merger deal as Stars had a relatively poor year in 2019.
What you seem to be missing is that Covid19 is temporary and stocks trade on potential a year from now or longer time horizon. So you really can't look at the difference in revenues for the next 6 months or a year.
Flutter can continue to grow by acqusition as it has been, Stars has too much debt to make any acqusitions but the combined entity might be able to make further purchases. Debt is so cheap (GBP Libor + 200 bp) for flutter they might relax their leverage targets and go shopping further but certainly they have enough cash to weather the covid storm.
This market is very optimistic right now and TSGi.TO could easily go to $40 all based on a less than anticipated DECLINE in revenue.
To me this optimism is overdone and I'll look to take profits very soon. Bullish Analysts for Flutter predicted a PT of 9500p for Flutter (even factoring the covid hit) which would put TSGI at $38.
I think if this hits $40 I am out, going to take the tax hit in any case.
The assumption sports can resume in Aug/September in Europe is tenuous at best at this point, of course that isn't going to stop the rise in this stock due to the increase in Poker/Casino revenues but that optimism can easily shift if market sentiment changes.