iGaming B2B Provider with a net cash balance sheet trading <5x EBITDA growing revenue double-digit with significant business wins in the recent months.
- CEO's comp is $1/yr. (Must be working for the shareholders? Oh, he is the single largest shareholder.)
- Lot's of great things going on around the world with this business.
- Rule of 40 applies.
- Selling at less than 2x's sales?
- When the debt is owned by an insider who is the 2nd largest share owner, it's hard to believe there is much financial risk to be concerned with.
- Negative: Don't really like that managements thinking was shaped by a tiny activist investor. Put your head down and run the business. You didn't need to spend over a $1m with an investment bank to be told to improve your margins, grow profitably, allocate capital wisely, etc. I want an owner who wants to run the business the next 10 years. The long run way and upside for this business and industry is way too great to be thinking about selling out. Glad they ended this process. Still think they need to be more definitive about committing to running the business and dropping the noise around closing a transaction. The stock will take care of itself over time.
Excellent work, highlighted lot relevant background info, very helpful.
a quick glance at its financials, its "investing activities" were ~$15Mn a year the last two years. what did they invest, and how do you project its trend in the future?
I will not publish on Seeking Alpha anymore. The website has degraded in quality and i find it annoying to submit my research there. I will focus on substack
Their cash needs are surprisingly not major. They don't fully need the 7m debt they took out. Probably only 3-4m$ usd as they continue to grow. It seems a line of credit is the most likely course of action.
IMO intangible addition as a % of rev settles around 6-8% over the next few years
BRAG options look pretty juicy imo. Not much time premium.
Great update, appreciate you doing it
Terrific write up!
- CEO's comp is $1/yr. (Must be working for the shareholders? Oh, he is the single largest shareholder.)
- Lot's of great things going on around the world with this business.
- Rule of 40 applies.
- Selling at less than 2x's sales?
- When the debt is owned by an insider who is the 2nd largest share owner, it's hard to believe there is much financial risk to be concerned with.
- Negative: Don't really like that managements thinking was shaped by a tiny activist investor. Put your head down and run the business. You didn't need to spend over a $1m with an investment bank to be told to improve your margins, grow profitably, allocate capital wisely, etc. I want an owner who wants to run the business the next 10 years. The long run way and upside for this business and industry is way too great to be thinking about selling out. Glad they ended this process. Still think they need to be more definitive about committing to running the business and dropping the noise around closing a transaction. The stock will take care of itself over time.
Excellent work, highlighted lot relevant background info, very helpful.
a quick glance at its financials, its "investing activities" were ~$15Mn a year the last two years. what did they invest, and how do you project its trend in the future?
I just finished reading your article on Seeking Alpha, do you normally publish both on Substack and Seeking Alpha?
I will not publish on Seeking Alpha anymore. The website has degraded in quality and i find it annoying to submit my research there. I will focus on substack
Great research.
GMGI is another very interesting example of the similar growth story.
What are cash needs? Cap ex? Cash taxes? Thanks. 🙏
Their cash needs are surprisingly not major. They don't fully need the 7m debt they took out. Probably only 3-4m$ usd as they continue to grow. It seems a line of credit is the most likely course of action.
IMO intangible addition as a % of rev settles around 6-8% over the next few years
Got it so maybe 10mm US fcf. 40ct. 10% fcf yield+. Unlevered. Seems easy. Thx