The one-armed bandit
Quay Global Investors
The one-armed bandit. Ainsworth Game Technology Limited (AGI) provided a positive trading update and guidance at its AGM 20th November. There was a positive outlook, but we are bearish: 1. The rosy outlook has largely been reflected by covering analysts and more than reflected in its 19.2x forward multiple. 2. Its large working capital requirement means growth comes at a cost. 3. Let's face it, pokies suck - these machines damage communities and causes a lot of societal damage. There are plenty of other stocks that provide greater promise at these prices.
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Ninus has over seven years experience in equity research. Having recently worked at Fairmont Equities, Ninus has previously advised institutional clients with firms CLSA, ING Investment Management, Merrill Lynch and Morningstar. He is also an...
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