NetEnt stock

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Forestberry

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I don't know if this is the right forum for this kind of discussion but since we enjoy slots and aren't afraid of risking our money I'll give it a go.

So the NetEnt stock has plummeted in the last years but what do you think the interim report will say this Friday? And what do you think about the future for NetEnt?

I expect good numbers. If just the live casino could grow. Which casinos even have NetEnt live casino now? Evolution gaming crushes that market. Except for DOA 2 they really don't produce many good slots and other providers create more popular games.

Canadian customers have gotten access to their games since around the middle of May. DOA 2 launched around the same time and should be a success judging by the big wins that are posted - people must play it a lot. So half of the past quarter will reap the benefits of this.

On July 15 online casinos are allowed in Pennsylvania and NetEnt have a license there. Parx casino will launch that day and NetEnt slots will be there from the start. The taxes on slots in Pennsylvania will be 54% on gross gaming revenue and that will hurt.

I have looked at a few casinos that operates in NJ and their websites are just awful compared to the ones we in ROW plays at. A good looking site like Leo would be great.

In my opinion NetEnt will grow in the coming time but mostly because of the increased markets in Canada and USA. Their new slots aren't fun to play or see others play, they look dark and dystopic except for Wild worlds... Am I wrong?

I'm in pretty deeply invested in NetEnt since about a month so I might see too many upsides and too few downsides.

What do you think?

 
netent is in the the business for years. So talkin about down the hill stocks wont be an issue in the future. Netent live casino was thriving back in 2012 to 2015 as far as i remember but then again the "new" that evolution gaming brought made everyone drop netent.(thats where netent started losing) Later there was BTG with Bonanza where every single player was playing it. So when you got BTG MICROGAMING nee upcoming powers like Wazdan (which i hate), PlayNGo, pragmatic play, where in those slots you can win easily 600x and got higher chances winning bigger (1000x), then why would you try netent. 

Making DOA2 where it gives you the chance to win 100000x makes people dizzy. So it was a smart move. But how much will it last?

@Forestberry when you say you invested deeply you mean economical? you got stocks?

 
Netent is largely crap,in my opinion. They were market leaders a few years back but have been left behind in recent years. DOA 2 will distort the numbers as will casinos constantly giving free spins on Starburst because its so unlikely to give many big wins at the  small stakes at which they issue them. They are old and tired,although still fun to play if you haven't used BTG or Blueprint much but I think most slot players would play other providers before them and I am happy for casinos to have none or few of their games on site.

 
NetEnt stock is a special case I think. For many years they have been trading at an insanely high multiple compared to peers. They were an attractive stock as high tech b2b in gambling on the Stockholm exchange, the only of its kind before the likes of Evolution and Kambi. 

But not everything was well with NetEnt from about 2012-ish. Their defacto monopoly position with operators broke down, competition came to beat them at their own game (yggdrasil, playngo, quickspin...) often with disgruntled ex-netent employees leading the charge. NetEnt was losing share of wallet at the operators that made them successful, growth solely achieved through new sales. But management kept on telling the good news show although they knew it was going bad. Stocks kept going up but the company behind the scenes kept going down.

At some point lies could not save face anymore, CEO had to be fired to sacrifice to the stock gods, and they have been in repair mode ever since.

Latest financial presentation I saw was a humble NetEnt stating they hope they will do well again by 2020. Maybe DoA2 can be a saving grace, if so, for their sake I hope they take it humbly and not arrogantly as they were before the downgall.

Tl,dr it's a big gamble :)

 
@themajestic Yes, I've bought a lot of stocks. 1/3 of them right before they bought back stocks and that equalled to an 8% dividend and the rest a couple of days ago. If Netent continues to be profitable in the future with the same dividence it'll be good.

I agree with you all that NetEnt underperforms with the quality of their games and they have been for years compared to BTG, PnG, Pragmatic and Push. At least imo. The only slots I would play of theirs is the DOA games that can pay at a few 1000x.

They should try to reinvent their slots to attract players like pragmatic or BTG. Why aren't they? Their latest releases hasn't been catching my interest at all.

Are they unable to adapt their products for the current market? How difficult can it be? Their new CEO Hillman isn't doing much to change it but at least they have reappeared in Canada and have an agreement with Parx casino since she got the role.

I mostly bought the stock because I think the sudden influx of Canadian players and the interest in DOA 2 will boost their quarterly report. I don't know if they will be able to grow their business after the hype of DOA 2 has calmed down.

 
The biggest issue is knowledgeable product owners. You need good ones to create good games. NetEnt have lost a lot of them to competition, and them leaving to start their own venture. And from what I understand, their management and CEO are not product people so they can't assess if their product team is good enough to compete. I am sure there are some good people, but it's mostly the question if it's enough.

Making good games is not easy, if you think it is you should start a slots development company.

 
@Forestberry mate they got for ceo a person who has been ceo for Gymgrossisten, which has nothing to do with gambling etc.(she only has been 1 year board member at unibet)I think if a casino or a software provider wants to thrive you MUST put people in the right position plus they gotta be into gambling(or at least been). The reason is that they know what people want. Netent latest releases except DOA2 have been traumatizingly bad. I mean viking, where inside the game you really cant win anything. Wild worlds could have been good if the x potential was way much higher. Cashomatic which is the worst ive seen lately. Spininsane where you play only to lose. You know netent is obliged now to release at least 1 new slot every month due to the competition which is already into the rise. My opinion is to sell when stocks get the estimated value. 

 
I have a smaller position in NetEnt after the downfall, valuationwise it's way more attractive at the moment, like @TalkingSlots said they were a bit over hyped for a while. I like the new path they're taking but as also stated previous, they have a lot more competition nowadays, much of which are companies founded by ex NetEnt employees. Another add is the Live Casino part which could be an upside if they get it rolling but at the moment Evolution is dominating in that area.

 
Had a really small position this year before the dividends and profited a little out of it.

Since the start of this thread the stock really took a big massive dump. With ~27.4 SEK I'm getting on board again. I'm not very experienced in trading so don't take my word for any worth  :)

 
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