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AUTHOR
DATE
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24
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5/15/16 11:29AM
Sale process
Anyone have any smart thoughts on what happens here? My best guess is it gets sold given how well the business is performing but not sure greater shareholder value couldn't be created by moving to
Hi jer1225,
What are your thoughts on the Spruce Point report? The company pointed to several inaccuracies in a PR today...Are you still as confident in the business/management at this point?
On your estimates this is now
The cash they generate will basically cover the earn out. So with cheap debt financing its pretty immaterial to EPS. I think they do ~1.80 in 2017 growing 10% which suggests $12 is a very
Blaueskobalt,
I think there are a number of mitigating factors to your concerns around the Gamesys relationship. Firstly, Intertain is now gamesys' largest customer by a wide margin, accounting for 60% of Gamesys' revenue. As part of... login to read the rest
Jer,
The earnout for Spain is 9x so they basically haven't actually acquired this business yet and hence its growth is irrelevant to current shareholders.
10x EBITDA is a premium to the multiple at which Gamesys agreed... login to read the rest
All good points and I think we have to watch market share closer particularly given the growth at Rank and Coral and their cross selling. I keep coming back to valuation and feel like I
In terms of EBITDA, I think they'll do 40M in q3 which is 160M run rate growing 10 percent. You can't look at annual EBITDA as 1H didn't have full contribution from JPJ. This gets... login to read the rest
"Let's call the earn out 300M"...ok let's do that. So we have a 950m market cap+360m earnout (300m from JPJ as per your comment and 60m from the others) + 300m in actual net debt=... login to read the rest
The last name was the giveaway . . . that and the fact that the son of JFK/brother of Caroline died in a plane crash about 15 years ago!
I just thought it was a bad
Sure. On Gamesys incentives:
Hayden's Gamesys stake is >10x the size of his Intertain stake.
Payments to Gamesys are based upon cost, rather than on profits.
Gamesys provides nearly everything for JPJ (including a lot of the brand management).
Even... login to read the rest
Let's call the earn out 300M and assume 6 percent debt equals 18m interest.UK and Spain business will grow more than after 5 years so it's a wash. If earnings go down for whatever reason... login to read the rest
Kobalt- How are interests aligned against shareholders now? Im open to change my mind. Also in terms of valuing the "brand" it's tough but if you think it's ridiculously cheap then it seems like a
1. bwin has stated they want to divest non core assets so I think there is some potential they sell bingo to focus on sports. We don't need another accretive deal to get excited about... login to read the rest
I like the stock idea (thanks for posting), but at the risk of pointing out the irrelevant, the CEO John Kennedy Fitzgerald is NOT the son of John F. Kennedy and the brother of Caroline... login to read the rest
Bingo market share has moved around considerably in the past 5 years--what evidence do you have that the network effects are strong? Does the need to have chat hosts reduce the benefits of scale? Liquidity provides some... login to read the rest
I dont really worry about the Gamesys operating agreement for five reasons.
1. Noel Hayden owns almost $30 million of IT CN stock and wants it to do really well.
2. Gamesys must provide services for up... login to read the rest
How do you view their relationship with Gamesys and the alignment of their interests/incentives? We looked at this idea when the deal closed, and we couldn't get comfortable with the unusual structure of the transaction
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