As short players we like the bad financial results that comes from Stargames.From our selfish point of view,Stargames is sure fire LOSER--accordingly, we want Shfl to hit $30 and then we will short the hell out of the stock.
However, inasmuch as Shfl is now on the radar screens of all of the big funds, we fore see them selling as soon as the price nears $27 which is probably their average buy in price.Unquestionably, the big funds want out without losing money.Presently the funds collectively have almost $1 billion tied up in Shfl which is dead money.
If we were long investors:
Firstly: We would want Shfl to sell Stargames back to the Aussies, or to anyone else that would buy it. We would sell it for $15M -$20M [taking about a $100M loss] to any sucker just to get rid of this dog.If there were no buyers we would just shut it down.
Secondly: we would stop selling shuffflers and only lease them.Shfl has no real competition for its shufflers, and over the longer run leasing is far more profitable than selling.
Thirdly: we would fire Yoseloff and replace the entire board of Directors.
Unless Stargames is dumped rivers of red ink will flow.
Thanks for the invite, I'd love to take you up on it today but I'm at Caesars Indiana.
FYI, they have Rapid Roulette installed. It was full of players for several hours last evening as I had to walk by it dozens of times.
<<As we have demonstrated, Shufflers are way under priced because of gross mis management from Yoseloff.
Yoseloff is a blow hard hypster/con artist type. For sure he is not a competent CEO. >>
Kblow,seriously,are you fooling around or are you THAT f--kn stupid? Have you ever been inside a real casino? Please bro,come to Vegas ,let me show you around. Do you really think the shfl salesmen shows up @ a STN or MGM joint and says,its your lucky day,I'm with shfl and I'll let you lease a box for 2k a month? GET TO A MEETING!
Shfl has no real competition in the shuffler business. If a casino does'nt like the the price, it can remain as a hand shuffler but can't go a buy a comparable shuffler from another company.
As we have demonstrated, Shufflers are way under priced because of gross mis management from Yoseloff.
Yoseloff is a blow hard hypster/con artist type. For sure he is not a competent CEO.
1) agreed. but i do think they could get more for Stargames than $15-20M. not sure how much, but certainly not what they paid for it.
2) there is absolutely zero doubt that SHFL would be better off in the long-term if they leased their shufflers. it blows my mind that people on this board think Yoseloff is doing the right thing by selling more shufflers at the expense of the lease fleet -- near-term earnings at the expense of future periods. here's the proof:
the going rate to lease a shuffler is roughly $425/month, or $5,100/year -- that is SHFL's revenue in the lease scenario. in the sale scenario, SHFL books $11-12k of revenue all at once. find me a casino general manager that replaces his shufflers every 2 years. if you can, i will give in that selling is better, as you get the same amount of cash up-front, versus over a 2 year period. otherwise, more value is created by leasing, only you don't get the temporary pop in earnings.
you all own one of the only gaming stocks that is down nearly 20% from where it ended the year 2004. meanwhile, Yoseloff has taken over $17M of cash (salary + option exercises) out of the company over that same time period -- this does not include the value of his unexercised options or direct stock holdings. try not to puke all over yourself as you read your proxy statement. congrats, you are all believers, i'll give you that.
<<) there is absolutely zero doubt that SHFL would be better off in the long-term if they leased their shufflers>>
Hello kc,most of us respect you,kblow is a total fraud. Let me just ask you this,do you think Mark became a moron overnight? Don't you think he would rather lease a box for 30 years? If owned a joint would you rather buy or lease the box? Its a bit more complicated then that,are you coming to the annual you can meet all the guys? Take care bud.