

TIP604: Best Quality Idea Q1 2024 w/ Clay Finck & Kyle Grieve
Feb 2, 2024
Discover the investment potential of Evolution AB, a leader in the online gaming industry that has impressively compounded by over 60% annually. The hosts dive into its innovative business model, the contrast between regulated and unregulated markets, and the significant tailwinds driving growth. They also discuss the strategic management decisions behind recent acquisitions and the intricate balance of dividends and buybacks. Join in for insights on navigating investment opportunities in this rapidly evolving sector!
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Evolution's Business Model
- Evolution AB is not a traditional casino; it develops and runs online casino games.
- Their main segment is online live casino games, featuring classic games and innovative game shows.
Evolution's Quantitative Metrics
- Evolution AB boasts impressive quantitative metrics, including high insider ownership and returns on invested capital.
- Its margins are exceptional, and it has a history of strong revenue, net income, and EPS growth.
Live Casino Tailwinds
- The live casino industry benefits from tailwinds like improved internet, camera technology, and increased regulation of iGaming.
- The convenience of online gambling and the ability to cross-sell with sports betting also contribute to its growth.