Opinions

James Hodgins The Stars Group Inc TSGI-T BUY Dec 30, 2019

The outlook for online gaming is very positive. They are doing the merger with Flutter out of the UK and will add scale to the company. In five years you will see in-game betting like you have in the UK. The NFL would be a monster business.

James Hodgins

Unknown

Unlock Rating

$33.730

Stock price when the opinion was issued

Business Services

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

PAST TOP PICK

(A Top Pick May 29/19, Down 8%) He recently added to this. It's a five-year play on the gambling sector that's supposed to grow 20% a year. TSGI has positioned itself well, but investor appetizer is not there right now, hence the pullback in May.

WATCH

A gambling stock including poker. The upside potential is 92%, says his model. Shareholders seem to have become frustrated they have not signed more deals with the various US states. If they can get things signed, it has great potential as it trades at a discount to book value.

DON'T BUY

It is trading at a pretty sizeable discount to the price with which Flutter is trying to take them out at. It makes sense to try to put these two together. You are dealing with uncertainty about M&A and regulatory issues.

PARTIAL SELL

A speculative play. It's a bet on their growth prospects. The stock didn't do well until the takeover move. There hasn't been much movement after that takeover announcement. Take profits.

PAST TOP PICK

(A Top Pick Nov 15/18, Up 21%) He's starting to exit it after the merger deal was announced. It's a speculative stock. Some may not buy this because it is in the gambling space and that will hurt the stock. A good time to take some profits.

HOLD

He has liked it from back in the old days. They made a big acquisition about two year ago that gave them a big footprint in the gaming space. They are merging with Flutter Entertainment in the UK. They will be a powerhouse in the gaming space in Europe. There is deal risk. You may want to sit n the sidelines if you don’t own it or hold on until the final deal price narrows a bit.

WATCH

GC-T vs. TSGI-T. They trade at significantly different multiples: 20 times vs. 10 times. TSGI-T has a bigger international perspective, but has more competition. He would prefer TSGI-T if they get their merger done.

PAST TOP PICK

(A Top Pick Feb 25/19, Up 52%) It was a rollercoaster. He exited in November on news of the acquisition. It's a speculative stock. He still likes the outlook for this industry though.

PAST TOP PICK

(A Top Pick May 29/19, Up 66%) He sold out previously. He liked the 5 year forecast. As we came into late last year some of the volatility in the stock was not what he was interested in so he exited. He believes they will be stronger going forward.

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : hello@stockchase.com.

James Hodgins The Stars Group Inc TSGI-T BUY Dec 30, 2019

You might be interested:

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

The Stars Group Inc(TSGI-T)

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

Stan Wong

The Panic-Proof Portfolio (Stockchase Research)

The Weekly Buzzing Stocks by Billy Kawasaki

Gordon Reid

Jim Cramer - Mad Money