The one-armed bandit

Ninus Kanna
Ninus Kanna 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.

equities gaming

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Medium screen shot 2016 01 12 at 2.25.34 pm

James Marlay

from Henry Jennings this morning talking of pokies I was amazed to read that 50% of facebook users are using social media gaming website too...should help ALL and AGI..pretty easy I would imagine to roll out the software online and do away with all those pesky venues and costly licences! Ninus, any mention of online rollout/opportunities for AGI?

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