The Stars Group Inc (TSGI.TO)

Had a great run. The one concern that he had was that a number of years ago, the US Department of Justice came down hard on a number of Canadian players. This company made the big acquisition of Poker Stars and are trying to get back into the US market, but the previous owners of Poker Stars had some issues with the US Department of Justice. He would be cautious on this.

There seems to be a really, really massive investigation on insider trading. Unless there is a senior executive in trouble, and he can’t believe that would happen, he thinks the company looks really, really good in terms of access in the US to the online gaming market. When the investigation goes away, the stock will get a good push. Have done great acquisitions, great financings and they are the biggest company globally in this space. Have started to cross sell and adding new products to their existing customers. Selling assets to reduce debt and earnings are better than expected.

A controversial name. Feels the outlook is very strong. Made a transformative acquisition last year when they bought Poker Stars. Have a dominant position in online poker and gaming globally. Online gaming is prohibitive in most of the US states, and there has been a lot of speculation that that is poised to change. Very solid business fundamentals. Generating very solid free cash flow. Thinks the outlook for this business is quite good.

Does not know about the spin-off. They are being looked at by regulators, questions about insider trading and at some point there could be some nasty articles about the corporation and what they have done. When you deal with the gaming sector, there are some people that can be less savory than others.

If you can get through the legal overhang there is probably upward potential. You will have to ride it out. For the next number of months you will have headline risk. Given the cash flow potential and the growth potential of the company, it is appealing. He likes to have significantly more upside potential than downside risk.

Would not touch it here. Model $26.67, -4%. A lot of regulators are sniffing around this one.

Stock has done phenomenally well. Made a number of acquisitions and for a while he was a bit worried, because each time they came out with guidance they wouldn’t hit their numbers. This is the 1^st time they have hit their numbers. Have the backing of a lot of US investors. A 2-3 years hold is very difficult as there is so much regulatory environment in the gaming industry. You have to be prepared to take some money off the table at certain points of time.

This is a company that people are buying for the future. Have about 200 different games they’re selling online and are trying to work their way into the online gaming business through Poker Stars. Potentially an enormous market if they can capture 10% of it. This is a call on the likelihood of online gaming being legalized in various states. There are a lot of risks in that.

Has had a tremendous run. The game changer was when they acquired Poker Stars assets. To invest in it now, you really have to believe they can open up on-line gaming in various US states. He thinks they will. They have a really good shot here. The stock continues to reach new highs, and he thinks there are a lot of expectations baked into the story. He wouldn't be a buyer at this level. Feels they are going to start unlocking some value. There are going to be some asset sales, which will help recycle some capital with repayment of debt, pretty quickly.

Recently sold his holdings and bought Entertain Group (IT-T). Still thinks this company is solid and has some really good opportunities.

This has been all the rage in the last little while, and returns have been quite substantial. Feels that 70%-80% of the revenues are still coming from Europe, not the US or Canada. If the situation in Europe does not right side itself, there could be some issues. If you own, consider taking some of your profit off the table and letting the rest run.

A fabulous company in terms of online gaming. He really likes the company. Prefers to AVO-T. The industry is growing so fast. They have done every single thing right in the last 4 years. Management has 26% of the company.

Thinks there is a lot of room for this company to continue to grow. Acquired Poker Stars last summer and are now starting to expand out into other casino games. They are still not in the US or Canada, but thinks that is probably coming fairly soon. Looking to get approval in New Jersey beginning in November. That should hopefully open up the way to other US markets. Trading at pretty steep valuations right now and have a lot of debt.

The jump up is regarding an acquisition. Since it is event driven you can’t do technicals. There is no sign of a top yet. Wait for it to trade sideways and volume to increase. Don’t buy it in here.

This is a stock that is overhyped. Thinks this is an overcrowded, overloved trade. Gamble is probably a good word for it. Wait for a big correction.