6425 JP

Universal Entertainment Corp.

Consumer


Presented:04/05/2018
Price:¥4,820.00
Cap:$3.18B
Current Price:¥1,368.00
Cap:$0.89B

Presented

Date04/05/2018
Price¥4,820.00
Market Cap$3.18B
Ent Value$3.83B
P/E RatioN/A
Book Value¥2,934.64
Div Yield0%
Shares O/S78.89M
Ave Daily Vol429,288
Short IntN/A

Current

Price¥1,368.00
Market Cap$0.89B
Universal Entertainment Corp. engages in developing, manufacturing and sale of gaming machines. It operates through the following business segments: The Pachislot and Pachinko and Others. The Pachislot and Pachinko segment involves the manufacture of completed products, the development, sale and rental of pachislot and pachinko machines, the manufacture and sale of peripheral equipment and in the procurement of units consisting of parts and materials. The Others segment involves broadcasting business, and casino and resorts operations. The company was founded by Kazuo Okada on December 2, 1969 and is headquartered in Tokyo, Japan.

Publicly traded companies mentioned herein: Universal Entertainment Corp (6425 JP), Wynn Resorts Ltd (WYNN)

Highlights

Following the “disappointing” $2.6B settlement with Wynn Resorts (March 9, 2018), Universal Entertainment shares dropped by over 25%. The presenter likes the setup following the selloff, as many investors were playing for a big(ger) settlement and have exited their positions. The risk/reward is now attractive at ~4,800 yen, and the stock looks like “a cheap way to play the fast-growing SE Asian gaming market". If his valuation assumptions for the Pachinko business and Okada Manila are accurate, there could be upside to 7,000 yen.

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Idea Discussion

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