EVOLUTION GAMING GROUP AB (EVO-STO)

A top 10 position for him, but trading 15% below his cost. They dominate in live online casinos. Are based in Sweden. But revenues flat-lined this year. They had to restrict their gambling platform from countries where such gambling is illegal. Trades at 10x and pays nearly a 5% dividend. Are buying back shares. Online gambling as a whole is growing 10-15% annually. Continues to own it.

Stock chart looks ugly. But it's a predictable business, so that means the forward rate of return is going up. Trades at about 10x PE, buying back shares. Continues to gain market share, currently ~60-70% globally. Very much out of favour, and exactly the type of opportunity he looks for. He added more in February. Size your position accordingly; his is 5%.

About half of earnings are from unregulated markets, but those users were accessing regulated markets. UK represents about only 3% of revenues, but its gaming commission investigated that issue. Cyberattack. Employee unrest in Georgia. He feels these are short-term glitches. Yield is 4%.

Swedish gaming company that has low capital requirements, with huge customer base. No debt with founder led/owned management team. ~70% EBITDA margins. Trading at very good valuation. Has been buying shares. 

Technically, the largest casino in the world. Provides online backbone for land-based casinos and online casinos. Based in Sweden. Founder run and owned. Trading at 19x PE. Strong moat, in part because product quality is so high.

No debt. Margins are some of the highest he's ever seen, in 60% range. Growing earnings rapidly in 20-30% range, though that's come down a bit from 40%. A 4% weighting for his portfolio. (Price target is in Swedish krona.) Yield is 2.7%.

Swedish online gaming business. World's largest casino. Asset light business with high return on equity. Huge number of customers. Extremely profitable business model. Founder led and owned. Zero debt levels, and also pays a dividend. Will be a long term hold. Would recommend buying at current price.  

Strong business with high margins. Largest casino in the world with white label products online. Excellent cash flow with great management team. Recent weakness in share price presenting good buying opportunity. Excellent long term value. Founder led & founder owned.