The Stars Group Inc (TSGI.TO) Buy, Sell or Hold

The Stars Group Inc (TSGI.TO)

37.49

+0.36 (0.97%)

as of May 6, 2020, 8:00:00 pm Market Open.

70 watching

DON'T BUY

The regulation of internet sports betting in the U.S. has been a pushback and he doesn't know how it'll resolve itself. TSGI just partnered with Fox Sports and Fox has other interesting assets. So, Fox is a better way of playing online gambling.

HOLD

Involved in sports gambling. They made an acquisition that gave them a foot hold into Europe and eventually into the US. Strategically they are setting themselves up well. They will figure things out. It is trading below book value.

WAIT

It is trading near long term key support at $20 and appears to be building a good base. A breakout to the upside would signal a potential move towards $40. He would wait for the break out through about $25 before entering.

TOP PICK

Online gaming. The industry is a growth opportunity medium term, 3-5 years. Offers good value today. No dividend. (Analysts’ price target is $34.75)

BUY

Bottom end of a head and shoulders. That's the support line. Either it's going to break down, or that's the entry point. If he didn't have it, he'd buy it right here, right now.

BUY

Stars vs. Great Canadian Gaming A great combo. Once he was long the Stars Group and short GCG, though he's still long GCG. The Ontario bundle was good for GCG, but there's too much uncertainty here. Expectations rose too high. Now, there's too much uncertainty in Vancouver with a money-laundering investigation. He liked GCG before the valuation is too high now. Stars is more interesting, because they bought as many assets as they could in online gambling which is popular around the world while sports betting is gradually being legalized in North America. He likes Stars. There's strong potential growth in this space, like 10%. Stars will capture a large market share.

BUY

It's had a sideways base since the start of 2019 and is creating a cup and handle pattern. $30 is his target. He likes it here and now and should rise higher.

RISKY

They are the market leader in the poker business. If you are into high risk investing then there is an opportunity here.

BUY

A head-and-shoulders chart with support at $20. This could rise to the shoulder (high) again.

PARTIAL BUY

A frustrating stock but he does like it. They've cleaned up the board and management, and have made some acquisitions. TSGI is making a deal with the NBA in the gamblign space. Trading at a single-digit PE multiple, but they carry a lot of debt which is a worry. It can be volatile. Don't take a massive position. If they have a mediocre quarter, the stock will go up; a good quarter, it'll shoot up a lot.

PAST TOP PICK

(A Top Pick Nov 15/18, Down 3%) Loves it. A fine 5-year hold or even 2-3-year timeline. The industry boasts 20% growth for the next 5 years.

TOP PICK

Oversold now and has a lot of room to run. This industry grows 20% a year. TSGI has expanded into the UK and Australia. Solid fundamentals. (Analysts’ price target is $38.77)

WAIT

They are moving into sports gambling now. It is cheap at 7 times earnings, but the stock is doing nothing. He would like to see some excitement in trading momentum and improved guidance before entering in.

SELL

Nasty chart. Maybe doing things right fundamentally. But the chart doesn't look good.

PARTIAL BUY

The company seems to have a lot of moving parts of it and there are a lot of regulations affecting them. The government will probably tax a lot of their profits. Don't bet the farm on it.

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The Stars Group Inc (TSGI.TO)