If I were more courageous, I'd just buy Betsson (BETS) for 50% of my portfolio or something like that. Hell, it's not even courage. It's a gambling parlor, well-diversified geographically, well-run, with a skilled and honest CEO, trading at a little below P/E 8.
CEO's also the son of one of the founders, and both he and his family has substantial holdings (owns around 2% of co. I think). Before becoming CEO, he led the development of NetEnt, which was later spun of and then acquired by Evolution gaming (EVO). As a CEO, he has been focused on profitability over aggressive mergers etc. And, maybe most importantly of all, he bought back shares during the absolute bottom in March 2020 (while main competitor Kindred (KIND) waited until the absolute top during 2021 to do buybacks.)
Also, his LinkedIn profile picture is to die for:
At this point in time, I vastly prefer BETS over KIND. Too much uncertainty around Netherlands, which is a huge profit center for KIND but only a big one for BETS. Judging from BETS' Q1, it seems to have handled the situation almost to well to believe. KIND, on the other hand, did even poorer than one would expect them to do after losing after losing 34% of their revenue or some number like that.
I own both, though. And have bought more. Have bought more Kambi too. Because most of all I like the industry itself. They are playing a rigged game -- how could they not make money...? Still, they are both trading at P/E 7-8. Conservatively financed, fine profit margins & ROE/I/A because, well, gambling parlors... |
