This is a favourite amongst bloggers and people have been asking me to put up a scorecard for it for some time. So here it is. As you can see it is almost perfect. With a PE ratio of only 5.4 and PB ratio of 1.3, I can think of worse bargains out there. It is also a company which is growing yearly, is not highly leveraged and has a strong cashflow, and as a relatively small counter it is also likely to be overlooked by big foreign institutions.
The only concern is that it is not growing consistently. Last quarters results were not as good as the year before, and its 2006 year end numbers were not as good as 2005 year-end. There is also a possibility that it does not exceed 2006 revenues by a great deal, so it has also been discounted. The other thing to realise is that it does not really have a diversified revenue stream (as after all, selling gaming machines is not as good as owning a casino).
But for a relatively cheap, low-risk investment this is definitely worth taking a look at.
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