I had a very detailed chat to the company late this week and it...

I had a very detailed chat to the company late this week and it helped me understand why AGI has underperformed last year and the last two years. They had really fallen behind in game development . This is the first year they have games aligned to the quality and breadth of aristocrat. I think winning back market share to the mid teens ( they used to be 30% 4-5 years back ) will be very possible and will really help rerate them. Some of their new games are performing at 1.7 the floor average and that it was operators want. It really is about game popularly and Aristrocrats game success was described as an outlier. 1 in 20’years event. AGI seemed to be positioned very well this year with very strong interest at the expo, but importantly I think they have truly recognised the importance of game development. The JV with tech countties like Japan is important. For me the critical points are they are focused on what will drive sales - they have lifted the game offering to quality ( technology ) and quantity to the highest in recent history and they have the balance sheet to self fund strong R and D into the future. Every analyst talks about their leverage to increased sales. Given the underperformance over the last 2-3 years many analysts will wait for confirmation. They openly say this in their research. The secret though is to position oneself now as brokers often adjust up or down after the stock has moved not before. Interestingly many brokers also comment on the chance of corporate activity.
These things go in cycles - like a few years back when Metcash was struggling and WOW was flying . Then roll forward three years Metcash ralllies 280% and wow 20% lower. What AGI have also done is managed to secure new sales channels such ae CDI and Novomatic. No Omari’s has an obvious interest in AGI success so one would imagine continued sales from this channel. These channels will continue to deliver unit sales but as their is limited visibility on this analysts include very minimal forward revenue
Anyway - some insto agrees with me ( likely Alan gray ) as their was insto buying ( iceberg orders ) on Friday and therefore I expect a push into the 120s next week.
MD buying shares and dividend level sends clear messages about the expectations of the future. Who is listening ? I am