Opinions
Bruce Campbell (2)
Jackpot Joy PL
JKPTF-5
PARTIAL BUY
Dec 10, 2014
Stock price when the opinion was issued
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Has been tainted with the Amaya (AYA-T) brush. Had a Short attack which drove the stock down to $8. Should they be successful in finding someone to take them out, a price range of $17-$20 is probably not a stretch. A moderate growth business, but the free cash flow they generate is massive and should be commanding a much larger premium than what it is getting. Expects there will be a full take out of the company.
Really cheap 3 months ago and then news of the strategic review came out and there was a nice little pop on the shares. There is a lot of uncertainty going on right now. They pushed back their AGM because at the end of June they are going to come out with an announcement of whatever’s happening with their strategic review. But now with the BREXIT vote, his worry would be that whatever deal was in the works, it is either being put on hold or being quashed. Too much uncertainty for his taste.
A very unusual situation. It has gone through an interesting renovation with a new management, after the 1st management created lots of acquisitions, boosted the sales line up to about $500 million. A very serious social gambling type company. The newcomers are 2 Brits who have come out from the very much bigger British sector. They are going to take it back to the UK where it should belong, where it will stand out as the great gaming company for the ladies mainly. (Bingo)
Stock Price has really been hit in the last few days, which he thinks is a function of a number of different things, including the overall market. He is seeing real sloshing around of capital right now. With everything that has happened in energy and even in the financials, he thinks there are people that have been trying to shore up their accounts by selling down and raising up cash levels. People are targeting something like this, which has had such a great move. Also there continues to be rumours circulating about their next transaction. Have publicly said there are a number of transactions they are trying to execute on and are probably going to have to try and raise money. If you don’t own, consider doing this in 2 tranches. Probably buy some at this level, and wait to see some type of news from the next acquisition, which will be the next catalyst to move the stock forward.