Weighing Machine
Long/short equity

Scientific Games: This Equity Stub Has Significant Upside In The Making

In private equity the name of the game is to control as much revenue as possible with as little money down (equity) as possible. Then the goal is to improve the profitability of that revenue/those assets as much as possible. With its announcement to acquire Bally Technologies (NYSE:BYI) for $5.1 billion (all debt - in addition to the $3.1 billion it had prior to making this deal) on Friday, Scientific Games Corporation (NASDAQ:SGMS) allows the public to invest alongside private equity tycoon and SGMS Chairman Ronald Perelman (who owns ~40% of SGMS equity) in what has effectively become a publicly traded LBO. While SGMS sports a market cap of just $765 million, the proforma EBITDA of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details