Pollard Banknote Ltd T.PBL

Alternate Symbol(s): PBKOF

Consumer Cyclical Resorts & Casinos

Pollard Banknote Limited is a Canada-based provider of products and solutions to lottery and charitable gaming industries. It provides instant ticket products, licensed games, in-lane ticket options, and sales-driving merchandising solutions from its Schafer Retail Solutions + portfolio. It also offers a full suite of digital offerings, ranging from game apps to comprehensive player engagement and iLottery solutions, including marketing and management services. Its instant tickets and lottery products and services include SureTrack lottery management system, iLottery platform, eInstant game content, interactive digital gaming, including mkodo’s game apps and GeoLocs, PlayOn loyalty programs, retail management services, ScanACTIV, EasyVEND, and lottery ticket dispensers and play stations. It also provides pull-tab tickets, bingo paper, ticket vending machines, and its Diamond Game and Compliant Gaming electronic games and devices to charitable and other gaming markets in North America.

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Pollard Banknote Ltd > Stephen Tacaksy on BNN - Top Pick

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Comment by Konaboyon Mar 30, 2022 7:52am

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Post# 34558147

RE:Stephen Tacaksy on BNN - Top Pick

Long holder, there is some good upside here, but I'm having trouble with the logic behind: Strong growth because governments needs revenue.

How does gov revenue desire translate into ticket sales by consumers?

Possibleidiot01 wrote:
Pollard Banknote (PBL TSX)

Pollard is the second largest supplier of instant lottery tickets in the world and a leader in electronic lotteries in the U.S. (iLottery). There are only three players licensed in North America, so barriers to entry are huge. After a big run to over $60, Pollard’s stock has pulled back to a very attractive level of $25 due to some margin compression on higher input costs for paper, ink and foil, as well as some production inefficiencies due to overly strong demand and sales delays on higher margin products. The North American instant lottery market continues to grow as governments use it as an important source of funding, while state iLotteries are still in their early days. We expect 2022 could be another record year for Pollard. It’s such a great business that Brookfield Business Partners is paying US$6 billion, or nearly 14 X EBITDA, for Scientific Games’ instant lottery business, which would value Pollard at over $40 per share.

TOP PICK

Pollard Banknote Ltd(PBL-T)
28/03/2022 at 08:00pm

It's the second-largest supplier of lottery tickets in the world and the leader in electronic lotteries in the U.S. There are three such companies in North America, so there's a good moat. The stock has fallen to attractive levels. Demand for lottery tickets is so high that these companies are struggling to meet demand, though they face higher input costs (for paper and ink). PBL has added an extra shift to production lines. 2022 could be a record year for sales, though margins may not beat records. Brookfield is buying one of their competitors, which is a good sign. This trades at 9x earnings. Well-run with strong growth ahead, because governments needed money (through lotteries). (Analysts’ price target is $37.25)
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$24.830

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