the market considers the deal not sure and risky. I doubt about the first thing, but I'm scared about the second until I won't see SAVAGE COST CUTTING, NEW ORDERS, STRONG AND STABLE CASHFLOW
Well, when the market was down 1000 pts, SGMS refused to tank now the market is up and it is doing a reversal. I'm getting sea sick watching this thing yo-yo.
Sentiment: Strong Buy
How in the world can the pps be down 3.5% today when the Nas is up over 40 points and the Dow is up over 270 points? Would it be down a buck if the market reverses and tanks today? On no news. Shameful.
Thank god the Bear Market is officially over! and the oversold business is now over and we are cleared hot straight up to $19.00 per share, until the Bally agreement then onward and upward!
Sentiment: Strong Buy
BeakyBuzzard will last three bad quarters, he won't contain costs as outlined to bond market. Without cost cutting, debt will eat up available cash. Haddrill will be back as CEO, then hang on.
I can't believe this stock, it defies all odds. Sluffs off $5.00 a share in three weeks and gains on a down day, amazing. I originally bought 20,000 shares at $8.28, rode it up to $13.50 (was $100,000.00 up) and then rode it back down and sold yesterday because I was disgusted. I've been waiting for continued retraction over the past two days but that has not happened. Either the shorts are covering because they think it has bottomed out or it truly hit bottom and the future is pure green. The next two days will tell all. If it finishes green on Friday then next stop will be $19.00, unless I buy in then it will collapse; the stock gods are aware of my actions and normally punish me so if it turns red tomorrow and Friday, I bought back in. GLA.
Sentiment: Strong Sell
How many shares does Beaky Buzzard own, other management? Haddrill invested millions when he became Bally CEO. When insiders buy, doesn't that say something about their full faith and confidence?
Wait for private equity firm to pounce on SGMS after the merger. Stock will be cheap, relative to the accretive upside of the merger.
Scientific Games is required to pay a reverse break-up fee of $105 million (2.06% of the total deal value; 3.18% of the equity value) if there is a financing failure due to a breach by the lenders or if there is a failure to obtain any of the antitrust or gaming approvals required for the merger.
What is the cost of canceling the merger ? could be very high and I doubt that will occur. The stock is dropping as the cost of the merger will be much higher, however, the merger is a positive for SGMS and should occur but now its very risky.
IMO they should make a capital increase...dilutive for equity holders but i would guarantee more financial flexibility. Bally is able to generate lots of free cashflow but it will take years in order to reduce leverage to a more manageable level, say 4-5x ebitda.
You're almost there. I sold 3300 shares at $13.10 and held onto a thousand to see if it would bounce. It bounced alright. Right into a huge sinkhole.