Merging with Another Excessively Leveraged Firm is like Gambling Rather than Business Investing; Analyst Report by BrokerBank Securities, Inc.
NEW YORK, Aug. 4, 2014 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) is a global product and service provider of lottery and regulated gaming industries. The market extends to North America, South America, Europe and Asia. Company offers very diverse products within the gaming industry.
Above all, Scientific Games has a leverage problem. It is hard to explain how the managing team survived without fierce resistance from the board or shareholders. So far even when profitability has been so disappointing year after year. It is not surprising to see that GMI Ratings marked such a poor review on Scientific Games. GMI Ratings measures the qualitative aspects of a company's value. It is an independent provider of measurements related to social, governance, and accounting-related risks of public companies.
Scientific Games released a public announcement on August 1st, 2014 that it would acquire competitor Bally Technologies, Inc. ("Bally"). The merger news was peppered with negative reactions from industry participants.
A full in-depth analyst report on SGMS that includes risk factors, industry review, financial position, potential revenues, review of current business model, competition landscape, analyst summary, and recommendation can be viewed by using the following link at no cost:
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SOURCE BrokerBank Securities, Inc.
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