Indeed, Q1 really didn't look good (from my quick and dirty perspective). Betsson (BETS), OTOH, tackled the NL situation spectacularly. BETS has become my fav stock by far. The co.'s geographical diversification, which it has had for a long time, makes more and more sense. Its early focus on Lat Am also seems quite intelligent indeed. CEO understands capital allocation very well, it seems to me. (Hugely important, of course.)
In the long perspective (1-3 years), KIND will probably recover. However, as Spekulatius alluded to, these things tend to take time. Also, the fact that its customers have been "cold", and may be hard to get back, makes me think that there won't exactly be great profits from day 1 when (if) operations start anew in NL. It probably won't be the profit machine it was before, because of (1) new competition and (2) costs for advertising, which were previously more or less banned, as I understand it.
Kambi (KAMBI), too, seems more attractive to me than KIND. The fact that it has repaid the convertible that acted as poison pill, and its falling stock price, could make it an attractive takeover object. The creator of KIND (from which KAMBI was spun off) has added significantly to his multi million dollar position (through his investment co. Veralda) and is largest owner by far, with 1/5 of shares outstanding. I think it has some significant that he chose to go mainly with the spin off, rather than the old co (which he started). Pretty much the entire leadership has what appears to be significant holdings too.
Hearing him speak about the co., it does seem that KAMBI has important competative advantages. Not least in having him, who, much like early Buffett, was an avid horse handicapper, and who has bred a race horse (which sold for equiv. to 13 mn USD). But mostly, in having an edge in live betting. They seem to be miles ahead of competition here, in this fast-growing part of the market.
To me, it seems like BETS & KIND are in the same game. Here, I choose BETS all they way going forward.
KAMBI is playing what appears to be another sport. It seems to me worthwhile to have a little bet on them too. BETS is my biggest bet by far in the sector, though -- and one of my biggest bets overall. |
