NYX GAMING GROUP LTD 11 PCT DEBS V.NYX.DB

Opinion of someone without a position

[CharlesA]

I'm a shareholder of Amaya and since AYA have a position in NYX I decided to take a look at the company to know if the stock was cheap and if I should take a position in NYX too.

This is why I didn't invest in the stock:

-No positive cash flow since the company is public.
-No sign that the trend will change with the result of Q3. The last quarter was quite concerning the adjusted EBITDA margin (without Ongame for both quarter) was worst than Q2 when we would have expected some improvements coming from synergies. 

-The debt is really high; normally I try to buy a company that can repay his debt in less than 5 years. When I look at the NYX debt I don't see how they could repay this debt in the next 5 years.

-They change the CFO, I need to know why.

-The CEO didn’t prove at all that he can complete some positive acquisitions for the business. Example Ongame they bought it and always lost money with it to sell it back after a couple of years and lost money. Also the track record of the CEO is pretty poor at the level of integrating company since he runs NYX he didn’t prove he can brings important synergy.

-NYX buys business with stocks and warrants plus they need to borrow at really high interest rate to complete the financing. I’m not a fan of getting diluted as a shareholders and the financing is really expensive for the business.

-On the last quarter they remove some information’s that they were providing before, organic growth and the table of amortization of intangible assets in the financial statement. It’s harder to evaluate correctly the value of the cie. When you have some great result you don’t hide it (organic growth).

-With all the different acquisition they will probably have around 175-180M shares (quite hard to follow with the warrants out of money the preferred shares…)

For me it is really hard to put a value on this stock. I will just put that company on the pile of too complicated and move on. I don’t say I will never invest in the stock because it’s look like they have a good product with the result the company that use NYX obtain but for now it’s not a great business.
 
Those 3 answers have to change for me to invest:
Is the management great?
No I would say poor with the way they worked since the company is public. (don’t invest)
What’s the level of debt?
They have a huge amount of debt. (don’t invest)
Is the business is cheap?
No they are not even producing positive free cash flow and I can’t say when they will. (don’t invest)

[ForesstGump]

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[CharlesA]

Baazov isn't on the board and CEO anymore... But I learned a lot with Baazov 

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[Carpenter72]

Ok CharlesA. I like your opinion but you've only listed the bad sides... In a fair play, you have to do the same but on the positive sides too and then we can have the big picture and decide the position we gonna take... GLTA Please, can you do this list for me, maybe i'm wrong on this stock...

[CharlesA]

For me most of the positive aspect of the company are on the revenue side but they will need to reduce the expenses and after reduce the debt to grow the value of the business. -They are growing organically so they don’t need to constantly buy new business to grow the revenue. -The majority of the revenue are recurrent. -The gaming business is growing and the company receive most of its revenue

[stocksnbonds]

Very interesting posts. I do not disagree with your points. As a matter of fact, I've pointed out many of the same points. I don't post any longer, not really muchg else to add until financials are out. I do read te board at times and caughte your posts.  One thing I would say is this...... given the organic growth which is taking place, any levelling off of costs will be produding

[tarka55]

Well im sure theres alot of smarter people than me .selling this atock it doesnt seem to be gaining any traction.in a market like this its kinda scary..i have a bundle tied up in here warching it fall. but if you look at the market what other stock has this much upside.. provideing of course management actually gets it togeather.. but im buying at these prices its a fairly good bet im thinking

[STOCKMAN70]

Good info. stocksnbonds and Charles, I have looked at this company a few times and made a couple of short trades but did hold for more than a week. I agree that there is potential for NYX to double or more if they can start to turn things around but it will be dependent on management (or new management). It scares me a bit when I see management say the #1 focus is on EBITDA and then recently

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[HowdyBob]

You keep saying it again and again Forest but never real data, who are all the fund managers that have dumped the stock in the last 6 months? Or are you just making it up?

[ForesstGump]

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[HowdyBob]

Ahh so you are making it up as Jerome Hass sold in the 1st half of last year and I asked in the last 6 months and Bruce Campbell said 3 months ago they don't own it now but have in the past. Recently Bruce mentioned how Matt Davey has done an excellent job and that the big aquisition just hasn't deleivered on revenue yet. Once a few quarters pass should see a big recovery. Did you watch

[ForesstGump]

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