As with any stock purchases, you need to dive into the company history, detailed quarterly updates, any mergers movements, etc. At the moment, land-based casinos are losing money due to COVID restrictions, whereas online casinos have been experiencing significant growth. There are also gambling laws to think about. While some companies have been operating in charted legal territory for many years, others are jumping onto the bandwagon more recently, off the back of changes to US gambling laws, and in anticipation of changes to Canadian gambling laws.
For example, acquired by Scientific Games , a previous hot stock pick NYX games can now be found at most popular online casinos servicing the Canadian market and the rest of the world. Over the past few months due to COVID the value of the stock has dropped considerably, however we can expect this to pick up again if land-based casinos manage to weather the storm and bounce back.
Gamehost Inc is a similar style of company to the Great Canadian Gaming Corp: they own a handful of casino properties, although on a much smaller scale. With four different properties on their books, including Boomtown Casino, this brand is also listed on the Toronto Stock Exchange, at a much smaller market cap. The Stars Group Inc is one of the biggest names in the online gambling world, lead by their high-performing brand, Poker Stars.
It looks like the brand will be on track for a good year, climbing back to their previous market highs in around June Balance your gambling stock picks with tried and true oil and gas picks in the Canadian market. They will likely take advantage of this low stock price and change the price range. They have high cash flow and a reasonable valuation. Three to six months after this virus, GC will be in better shape because they bought back stock cheaper. Sure, there will be a slowdown in their gambling revenue, but not a cessation.
It's hard to buy this with negative price momentum, but this is cheap. A long-term buy, sure. Go figure. Canadians love gambling and seeing live bands at casinos. The stock is selling 22x earnings after this pullback, so maybe it got ahead of itself. The money-laundering in Vancouver and the coronavirus have hurt the stock. For the latter, people aren't going to casinos.
Revisit on any weakness. Sell on any strength. Or hold. Corona virus has caused a sell off. Ultimately this will be a short term blip to this stock. He likes the business and they have a strong competitive business. They are building big, new facilities which he thinks will be very positive. They have been buying back stock. It has been a bit of a frustrating ride for him. The stock price has gone nowhere. The stock has put in a floor here and he would like to see it go up now.
This will tend to hold up well during periods of weakness. It is a very well run company. Their financial metrics are strong. He is looking to hold this longer term. Their issue was the money-laundering inquiry in their BC casinos which stopped some good growth. Now, that issue is working its way through the system.
The Woodbine Casino remains their jewel, attracting investment. GC offers a great return on capital. You don't need much capital to grow. New locations are very profitable. He owns Brookfield Business Partners which co-financed the Woodbine site. Safe to collect the yield. But the stock appreciation needs more research, which he hasn't done. Well-managed, though. Investors should see this as a long-term position around 3.
It has high cash-flow with defensive aspects to it. A high quality company with good long-term outlook. They are spending a lot of money building out casinos. It is a top pick today. He's watching it. GC has come off, but he's uncertain why. Wait and see. A hold if he already owned it. They are investing in the future by adding square footage, so earnings will be a little chunky. It trades 16 times earnings and they have 10 year contracts to manage casinos and there is no real competition.
Stars vs. Great Canadian Gaming A great combo.
In British Columbia, it operates four casinos; one thoroughbred racetrack; a standardbred racetrack; three community gaming centers; a resort with two hotels, a conference center and a marina; two multi-purpose show theatres, and a range of restaurants. Intertain Group Ltd. It offers casino, bingo and poker games to its customers using the InterCasino, InterPoker, Costa and other brands. Pollard Banknote Ltd.
Pollard Banknote Limited Pollard is a Canada-based company, primarily involved in the manufacture and sale of lottery, and gaming products. The Company is engaged in the production of instant tickets and provides related programming, design and marketing support. Pollard also manufactures pull-tab tickets and bingo paper, and provides lottery management services, including warehousing and distribution.
Imperus Technologies Corp. Deq Systems Corp. DEQ Systems Corp. DEQ is a Canada-based customer centric company that offers breed table game technology related products to the gaming industry. Capturing the hearts and minds of visitors since , Hastings Racecourse features live thoroughbred racing, gaming, dining and more. Enjoy slot machines, live dealer and electronic table games, poker room, high limits tables, dining amenities and live local entertainment every weekend.
Minutes from downtown Hamilton, enjoy slot machines, table games, dining amenities and live entertainment. Elements Casino Grand River. Featuring slot machines, dining amenities and live racing from June to September, Elements Casino Grand River provides unparalleled entertainment. This fun and casually upscale destination boasts over slot machines, electronic and live dealer table games and is the premier harness racing track in Canada. Local and casually upscale, this is the place for gaming, delicious dining, entertainment and relaxation.
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Gaming Group Ltd. NYX Gaming Group Limited is a digital gaming software supplier engaged in the design, development, manufacture and distribution of digital gaming solutions for interactive, social and mobile gaming around the world. The Company provides a suite of gaming solutions, a distribution platform, full gaming process support services, brand and player management, and both Real Money Gaming RMG and social gaming products and services.
The Company operates through the diversified gaming solutions segment. Shoal Games Ltd. The Company is engaged primarily in the business of owning and marketing Trophy Bingo, a non-gambling social bingo game. Its segments include the sale of in-app purchases on Trophy Bingo, and the business of marketing games and entertainment based on the game of bingo through its Internet portal, bingo.
The Trophy Bingo is a free-to-play mobile game live in the Apple, Google and Amazon application stores, and is free to download and supports in-app purchases and in-game advertising. Home Analyst Articles 5 Canadian Ca Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. You need to be Logged In first to save this article as a favourite. Great Canadian Gaming Corporation operates gaming, entertainment and hospitality facilities.
The Company has approximately 17 gaming properties, consisting of three community gaming centers, four racetracks and 10 casinos, including one with a Four Diamond resort hotel. In British Columbia, it operates four casinos; one thoroughbred racetrack; a standardbred racetrack; three community gaming centers; a resort with two hotels, a conference center and a marina; two multi-purpose show theatres, and a range of restaurants.
Intertain Group Ltd. It offers casino, bingo and poker games to its customers using the InterCasino, InterPoker, Costa and other brands. Pollard Banknote Ltd. Pollard Banknote Limited Pollard is a Canada-based company, primarily involved in the manufacture and sale of lottery, and gaming products. The Company is engaged in the production of instant tickets and provides related programming, design and marketing support.
Pollard also manufactures pull-tab tickets and bingo paper, and provides lottery management services, including warehousing and distribution. Imperus Technologies Corp. Deq Systems Corp.