The Panic-Proof Portfolio (Stockchase Research)
Everi Holdings Inc.
EVRI-N
PAST TOP PICK
Apr 29, 2021
(A Top Pick Feb 11/21, Up 23.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with EVRI has achieved its $17.50 target. To be disciplined, we are recommending covering 50% of the position and trailing up the stop (from $8.50) to $14.25 -- just above the original recommended buy level. This would all but guarantee a minimum investment return of 12%.
They're into video slow machines in casinos and cash-management in casinos like cheque-clearing. They just announced that they will sell one or both businesses, which will vastly improve their valuation. (Analysts’ price target is $13.83)
(A Top Pick Jul 22/19, Up 16%) It's in gaming. They did a strategic review in late-2019 that led to an equity issue for further acquisitions (which drive their growth). He sold in the 4th quarter, but the stock has risen since then. They haven't misfired yet, and the equity issue didn't dampen the stock as he expected. He wants to re-buy this on weakness.
Stockchase Research Editor: Michael O'Reilly EVRI is involved in the digital gaming space. Regional governments are moving increasingly into allowing online gambling to increase revenue streams (and as traditional casinos have been subject to pandemic lockdowns). Management recently upgraded guidance to above analyst expectations for the upcoming quarter. EPS was up over 37% this past year and is expected to grow by 20% annually for the next five years. We would buy this with a stop-loss at $8.50, looking to achieve $17.50 -- upside potential of 25%. Yield 0% (Analysts’ price target is $17.50)
(A Top Pick Feb 11/21, Up 56.5%) Our PAST TOP PICK with EVRI is progressing well. We recommend trailing up the stop (from $14.25) to $20.00. Along with the previous recommendation to cover half the position, this would all but guarantee a net investment return of 32% if triggered.
Stockchase Research Editor: Michael O'Reilly We reiterate, EVRI (involved in the digital gaming space) as a TOP PICK. Recently reported EPS of $0.34 beat expectations of $0.10 - the third positive earnings surprise in the past four quarters. EPS is expected to grow by 20% annually for the next five years. Cash reserves continue to grow, while debt levels are coming down. We continue to recommend a stop-loss at $22.00, looking to achieve $31.50 -- upside potential of 30%. Yield 0% (Analysts’ price target is $31.38)
(A Top Pick Nov 04/21, Down 7.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with EVRI has triggered its stop at $22. To remain disciplined, we recommend covering the balance of the position at this time. Combined with the previous buy recommendation, this results in a net investment gain of 15%.
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