Integrity Gaming Corp. V.IGAM

PYD business strategy

[Art35]

If I am correct, PYD (with all their assets producing) projects to make around $11mil annually. Lets assume they make $10 mil. From this information we can roughly estimate EPS and SP going forward.

Take $10mil divide by shares outstanding 350mil (not sure the exact count). That gives us 0.028 eps
then use x10 multiple and it gives .285 SP. Not so bad from 7 cents. I definitely think PYD is worth a gamble at 7 cents as it offers a potential 300% upside from here.

Also, I like this business style because they actually use the $ to purchase producing assets. Unlike resource companies where they raise tens of millions of $ and use that to drill holes, define deposits, then spend tons of cash for permits, feasibility / environmental / bankable studies, and all kind of expenses that in the end MAY or MAY NOT be profitable. In this case, PYD avoids all that resource nightmare and is already producing $$$. How much ? That we shall see by Q4.

Once they start making some cash, then they can use that to secure debt financing and grow from withing. Stop shareholder dilution. Sounds like a good plan to me. Hope it works out for them.

Opinions welcome.

[Mully99]

That $11M is EBITDA not EPS. Since all their assets are physical equipment there will be high depreciation on those assets and EPS will most likely be half of that - more like $4 - $6M, which yeilds a stock of $0.115 - $0.17. The good thing though is that cash flow will be much higher which can be used to expand and acquire new machines. I think we need to see a full quarter with the Integrity

[biggerr]

Windy Hill and Tonkawa which are pure slot machine operations will have around 40% profit margin, Integrity has a lower profit margin due to the bingo business it has and I think they also have some hotel business near the casinos, correct me if I'm wrong Windy Hill's revenue and net income for the period from January 1, 2014 to the date of acquisition on May 9, 2014 is $613,347 and

[biggerr]

looks like the Aurora division of the Integrity has recently became an official distributor of WMS video gaming machines which is in turn owned by the SGMS on Nasdaq, we're in the big leagues now, ha https://integritygaming.com/