The Stars Group Inc (TSGI.TO)

Got regulatory approval for their rational gaming acquisitions, which will make them the biggest public online gaming company globally. It is going to trans-straddle the consumer and technology sectors. A great, great growth company. Have done nothing but execute perfectly well in terms of deals and acquisitions. Management owns 26% of the company.

Not trading through $20 because you’ve got some hedge funds that are Shorting the trading stock and buying the sub receipts. He would buy the sub receipts if you could get some, and then wait until the deal closes to get the free trading stocks.

This has had a great run. Up 42% on Friday on the back of an acquisition. There is a lot priced in, particularly on this acquisition. He almost considered it as a Short at these levels. If you own, consider Selling your position.

(Top Pick Apr 4/13, Up 61%) People are too focused on the short term. They are building this company to be a big player in the gaming space. It is smaller and volatile. Fundamentals are pretty solid.

Has been quite volatile over the last few months. What they need is to have a quarter that meets expectations. Have a lot of things on their plate in terms of growing their online business. Also, made an acquisition of Cadillac Jack. Feels the market wants to see earnings and EBITDA start to come through. Have guided each quarter and haven’t hit their target. Instead of signing contracts, he was just wants to see it fall to the bottom line and that is when he would start to get interested again.

Management has done a nice job of putting the company together and is betting on the gambling online market, which is coming back in the US. Has moved more into the land based casino equipment business, which took a big hit in the 1^st quarter, largely due to the weather. Thinks their strategy is to continue to make acquisitions where they have done a good job of integrating them and making them profitable.

Came out with quarterly results that brought the stock down from $9 to about $6 very, very quickly. Has been looking at this name. Likes the gaming space in general. There is some liberalization taking place, particularly in the US. There is another smaller Cap name that he thinks is interesting, LasVegasFromHome.com Ent. (LVH-X). It is mobile gambling that he thinks is a real growth industry. Just announced a deal last week where they are launching in Mexico.

This one came out of nowhere but is now kind of flat lining. Have done a lot of acquisitions. This is really about the online gaming space right now. They have a relationship in New Jersey where online gaming looks like it is going to be a pretty big industry. Have done so many acquisitions over the last couple of years that investors are expecting something else so they may just bide their time for a little bit. Fundamentals are pretty good right now. On this you need a 2-3 year timeframe and you need to be a riskier type of investor. Management still owns a lot of stock. Thinks their game is to sell the company.

Online gaming. Expects it will become more legalized in the US so they are well-positioned to take advantage of this. Could see this at $10 in 12 months.

Almost made this his Top Pick. Pretty much done everything right for 2 years. Raised capital at the right amount with the right people at the right time, beaten expectations, done the right acquisitions and kept their balance sheet strong. Management still owns 30% plus of the company and their margins are now 97%-98%. Now poised to take advantage of the gaming market in North America worldwide. There are a couple of states that are going towards Internet gaming. As the US government gets broker and broker, more states will adopt this. Got a recent partnership with Caesar’s.

Owns a small amount. This company designs, develops and distributes technology for gaming solutions. The real key in this is that the US, after much foot dragging, is allowing Internet gaming. This is done on a state-by-state basis. Company has a history of robust software. Near-term earnings are expected to go from $0.055 cents in 2013, growing to $0.37 in 2014.

An interesting name. A bit of a slip up recently but he continues to like the stock. From a fundamental, macroeconomic basis, he is favourable on gaming stocks. Buy on any dips.

(A Top Pick April 4/12. Up 31.44%.) Control gaming software and have made some very good acquisitions over the past 4 years. Revenue is now catching up to the valuation. Company has executed well. Continues to outperform. Very well-positioned if the US decides to legalize Internet gambling. Thinks they will continue doing more acquisitions. Still a buy.

Gaming software and hardware. Likes the company’s strategy and what management is doing. Building out a big online and hardware gaming company. US is starting to think about legislating online gaming and this company is perfectly there with the clients, the software and the expertise. Acquired a company called Cadillac Jack, a hardware producer, and their revenues are just exploding because of that.

Big story in the US is that at some point, with Americans having tried to fight online gambling in their jurisdictions, they are now going to join the party. Without restrictions, Americans will be able to gamble on a US domiciled gaming company. He finds this area a very shadowy world. He is going to pass on this one.