Stock price when the opinion was issued
#2 in the world in instant printed lottery tickets, huge barriers to entry. All customers are governments. Huge input costs affected fixed-price contracts, but contracts are now being renewed at much higher prices. Lottery business is booming. Leader in iLottery. Margins will improve significantly. Yield is 0.67%.
(Analysts’ price target is $29.75)Oligopoly, high barriers to entry. Fixed-price contracts have been renegotiated at significantly higher prices. Shares are in recovery mode. Starting to see much improved margins. Q1 was a record, and should generate record profits this year and next. Low end of valuation range, great time to buy.
If you own it, hold, but don't double down. Stable revenue growth, solid financial position. Good debt situation. For him, would need to show more significant revenue and cashflow growth. Would also help if it improved dividend yield. Losing a customer is definitely a risk.
Decent company. As a guy from Winnipeg, he wishes the Pollard family well.
The second of three suppliers of lottery tickets. Costs soared post-Covid because of paper and ink costs, but new contracts will suppliers will lead to record top- and bottom-line growth. Recently they could not renew an electronic lottery contract, but won a contract with the state of Kansas. So, shares are bouncing back. Trading at only 7x EBITDA. (Brookfield paid for a competitor which had a 14x EBITDA.)
(Analysts’ price target is $35.75)A little volatile, too much for her. Hasn't seen a recovery yet, after topping at $60 in mid-2021, but may be rolling over at the current $23. To boost growth, they are spending internally and buying companies, which has impacted their margins negatively. There's risky, upside potential, but she'd pass.
Global tri-opoloy. High barriers to entry. Stable industry that's grown ~6% a year for 30 years, never a down year. New growth avenue of iLottery, which is very high margin with a different demographic base. Well managed, insider ownership strong, margins improving. Low valuation for high-quality company. Yield is 0.8%.
(Analysts’ price target is $40.33)
A major core holding of his. Sports betting doesn't impact instant lottery tickets which is in fact booming. PBL leads in online lotteries. But shares got way overvalued because excitement over online lotteries and has come down (also due to higher raw costs like ink and paper). He sold then bought back shares. A high-quality, stable company. Drivers: an oligopoly of only 3 players, and governments constantly need revenues.