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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: If Oldford group is the last in line as to responsibility and there is already $ 300 million in escrow it would seem to me that Amaya should come out of this whole. They are required to lead the fight for Oldford and then collect from them. Does it follow that the market needs to determine if there is a collection issue with Oldford and discount that risk and not be discounting against the size of the lawsuit. Do you agree and is there any information as to the risk of collecting in full from Olford if the costs exceed the amount in escrow.
Read Answer Asked by Doug on December 28, 2015
Q: I no longer have a position in Amaya as of now; but today's news makes it an interesting consideration. From the highs of $35 it is now trading at $17. The business seems to be growing nicely but there will be an overhang as well; maybe even for a couple of years. I was wondering if it is prudent to step in right now, wait until the market settles down January or wait to see what the next quarter results look like.
A merry christmas to you and the team at 5I.
Regards
Read Answer Asked by Rajiv on December 25, 2015
Q: I just sold a US stock from my TFSA and I want to redeploy the US cash in either US or Cdn funds. I'm thinking Amaya or Concordia in US dollar's. I have a half position in AYA in Cdn funds in my RRSP, I'm underweight health care and I'm looking for long term growth. Thoughts on these 2 options or would you have a 3rd option that you like better. I'm diversified and won't need access to cash for 20+ yrs
Read Answer Asked by Rob on December 01, 2015
Q: In the November 24th report of The Gaming Industry Daily Report the following paragraph was stated re AYA:
"S&P revised their outlook on Amaya Inc to negative from stable as they expect lower year end earnings and a higher value of debt to cause credit metrics to weaken. The negative outlook reflects their view of the strengthening US dollar’s negative effects on 2015 earnings and the carrying value of AYA’s debt, which is not denominated in the company’s reporting currency."
Perhaps some of the members would appreciate adding this information together with your recent AYA report. In addition the following comment also appeared on NYX:
NYX Gaming Group Ltd. announced it signed a partnership agreement with 888 Holdings Public Limited Company. NYX will supply a variety of its online and mobile casino content, as well as a wide range of games supplied by 3rd parties aggregated on NYX’s OGS & CGS platforms, to 888’s global bingo and casino verticals. That is great news since as good as 888’s poker platform is, it’s casino games are still the worst selection of all the games in NJ.
Chris

Read Answer Asked by Chris on November 26, 2015
Q: A complimentary article on David Baazov in the Nov. FP Magazine here: http://business.financialpost.com/financial-post-magazine/high-school-dropout-has-turned-amaya-into-a-gaming-and-publicly-traded-powerhouse

I did not know that head office is in the Isle of Man. Does that mean that some or all of the executives work out of there or is it just a shell office?
Read Answer Asked by Jeff on November 23, 2015
Q: Hi 5i,
Just an FYI. This is a quote from a press release I found on Globeinvestor in the off chance some people might have missed it: "Amaya intends to use its investor relations website as a means of disclosing material information to its investors and others and for complying with its disclosure obligations under applicable securities laws. Accordingly, investors and others should monitor the website in addition to following Amaya's press releases, securities filings and public conference calls and webcasts. This list may be updated from time to time."
If others have passed this information along, just disregard it.
All the best,
Cheers,
Mike
Read Answer Asked by Mike on November 19, 2015
Q: Hello team,

Could you please shed more light on Amaya's $3 billion prospectus. Is this why Amaya fell and hence is it not already priced in? How is this going to affect the stock price in the next couple of years? Do you think they issue more debt or common shares? Is it prudent to wait and buy when shares are cheaper or is it better to just proceed and ignore the short term price gyrations? And finally what do you think of the article in Financial Post: http://business.financialpost.com/financial-post-magazine/high-school-dropout-has-turned-amaya-into-a-gaming-and-publicly-traded-powerhouse
Who is Andy Holloway? Is he credible? Would you buy what his glowing assessment?
I already own Amaya and after the market meltdown and its own fall my position has been reduced to 2% and I wonder if I should add now and wait for better times? I want to believe in the company and the growing online gaming industry but not foolishly or excessively?

And for what is worth, like other members I too have lost money on many of the stocks suggested by 5i, but I have no regrets and know very well that I would have lost much much more without your informed guidance. So, keep up the excellent job you are doing on our behalf and don't be discouraged by the negative comments you hear every now and then. For everyone of those you have at least 9 happy members who don't say much. Stock market is not made for the faint of hearts and we all know that you are on our side all the time, good and bad. It is not your fault that the market is not doing as well as it used to in the past few years. Thank you for everything!
Read Answer Asked by Saeed on November 18, 2015
Q: I know the Amaya insider trading investigation has gone quiet since last summer, but I think your updated report on the company ought to have mentioned it as a Key Risk since no one knows where it is going or how long it will take or how it will influence regulators in jurisdictions where they hope to open up the business. The CEO's computer was seized by authorities after all.
Read Answer Asked by Jeff on November 16, 2015
Q: I thought your readers might be interested in this great article by the Financial Post re Amaya and its CEO, David Baazov:

http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com//financial-post-magazine/high-school-dropout-has-turned-amaya-into-a-gaming-and-publicly-traded-powerhouse

I believe the market and investors are over-reacting a bit to near-term guidance and need to take a longer term view.
Read Answer Asked by Arneh on November 12, 2015
Q: Just a quick comment regarding AYA and the reaction to them prepositioning to possibly issue equity in the future: remember, the last time they issued equity they did it at a 100% premium to the price the common stock had been trading at the 5 days prior to the Pokerstars deal.

Just some food for thought. If they issue equity, it may be a really good deal and accretive to existing shareholders like last time.
Read Answer Asked by Marc on November 10, 2015
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