The Stars Group Shares Suffer 16% Drop in Q2
Drawing the line under The Stars Group’s business during the first half of the year has left investors and shareholders confused as the company recorded a whopping 16% drop in share value.
The stock drop comes as a huge surprise for the Canadian company formerly known as Amaya which went through a long-anticipated rebranding process which included both name change and office relocation.
The new CEO Rafi Ashkenazi made a great effort to help the company move forward after the controversy which involved former CEO David Baazov who was forced to withdraw despite his efforts to keep a share in the company after being accused of illegal insider trading.
Baazov attempted to make Amaya private and even merge it with William Hill PLC, but the new management structure led by Ashkenazi has, in all honesty, helped the company restore its previous reputation and stature.
So why are the shares going down?
It probably has plenty to do with the uncertainty still surrounding the company. With David Baazov still pretty much in the public eye with his court sessions yet to be conducted, the investors and shareholders appear to be blind on positive moves the company is making.
What the 16% share decrease hides are the positive business movement which got The Stars Group record a 6.8% year-over-year increase in revenue. To put it in numbers, it’s $285.7 million compared to $305 million last year.
More surprisingly, the company’s net earnings went up by staggering 213% from $22.5 million to $70.5 million which is the best way to illustrate the positive business trend.
Hopefully, it will help investors and shareholders move past the negativity induced by David Baazov and support Rafi Ashkenazi in his efforts to make The Stars Group one of the Canada-based global leaders.