8 Comments
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Kristopher Rymer's avatar

I like the one-pager. I share the same sentiment on the stock. It may remain undervalued for longer than we prefer but it has strong fundamental growth. The CFO transition presents another opportunity to buy cheaper. I don't expect much upside from multiple expansion until the class action lawsuits are resolved.

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Quality Stocks's avatar

Yes, for sure. If the market wants a PE of 9x, it will get there. Improved visibility and communication from management might help restore better sentiment.

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Value Chaser's avatar

Maybe the new CFO can cut the dividend and just buy back as many shares as possible at this valuation. Their capital allocation is more conservative than I’d like for such a high margin business. Also, I think over the long term they will get the PE/PFCF multiple they deserve.

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Quality Investor's avatar

I want to congratulate you on this new format. It takes a lot of thinking about to get it right. Unlike some other writers you avoided the pre amble, amble and lastly the post amble.

For me I am adverse to gambling and gambling stocks.

As to other sin stocks like tobacco is there business an easy target for governments?

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Quality Stocks's avatar

I understand that sin stocks are not liked and that some people don't want to invest on it. In my opinion that explains a huge part of the low valuation. Regulatory risks are high and yes it can be a target for governments!

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Ampolkir's avatar

I love the new format!

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Frévot's avatar

I love this new content !

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Quality Stocks's avatar

Thanks for the feedback! Glad you like it!

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