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Originally Posted by Monorail
...not sure Baazov would be allowed to purchase stock with the knowledge that the company was going to be making a press release the next trading day about a possible $21 take-private offer. That's very definition of an insider trading on nonpublic info. The stock price jumping 8% on Friday (and yes, only half of that was in the final minutes) suggests someone engaged in some impropriety.
Totally agree. Now we know Mondays announcement the 8% jump on Friday looks extremely suspicious and shady. Not really surprising when AMAYA is involved.
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Originally Posted by MrFan
Can't understand who would want to get involved with financing any of these deals. Amaya has never added value to anything it's done
Agreed, every previous online gaming company Amaya has bought has ended up as a hollow carcass ripped of all its value and left to rot. Chartwell, Crypto, Ongame I think are three, any others? They have made some slots in their time I think - but utterly awful ones nobody plays.
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and the 18 months record with Stars has been catastrophic with a share price in the toilet. Mr Baazov must be truly hypnotic when he enters rooms with investors, with them writing blank cheques for him by the time he leaves. The price for Stars BTW was $4.9b PLUS $400m if there is no change in Russian regulation within 2 years (none so far).
When Amaya bought Stars I said it would be terrible for the players but I did not realise how bad it would be for the shareholders in Amaya also. Even with Mondays generated spike the shares are still trading below the price they were on the day of the announcement of the PokerStars purchase. There is no escaping the truth and that truth is Amaya are a terrible stock faced with many regulatory concerns on top of a rapidly declining poker industry. I fully expect the market to realise this announcement has no real substance and sharp declines to follow soon. This is an excellent time to short Amaya in my opinion.
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My first question as an investor would be to ask "if I give you a $billion Dave, how do I know $875m of that is not going to end up in the Kentucky state coffers?" would like to hear the answer to that... hypnotise me Baby!
Haha yeah Kentucky is a major concern, but it is a very public one that surely most serious investors in Amaya know about now. What many might not know about are the regulatory concerns over markets like Russia/Poland/Australia/Canada and what the UKGC's stance on these are. That is a real hidden problem for Amaya on the horizon.
Mondays share price increase might seem steep (and for those who purchased specifically on Friday
it really was steep). However in the bigger picture it made only the most minor blip on an otherwise sharp marked decline over the last 6 months, and that is telling.