8279.HK - AGtech Holdings

[yadayada]

This is a lottery provider. And for more info these articles (I know seeking a articles are generally bad, but these ones are ok):

 

http://seekingalpha.com/article/2156023-agtech-hkd-4_74-price-target-159-percent-upside

 

http://seekingalpha.com/article/2207193-agtech-confirms-government-comments-do-not-apply

 

Since all these hong kong stocks seem to be so weirdly priced, lets discuss this one :) . This stock seems to fall into the future value creation category of SNMX and STRP. So it is a bit speculative.

 

Don't really have an opinion on it now.

 

To quickly summarize, it is down because Chinese government is cracking down on lottery operators and they will legislate it, because most fo these lottery's are in the black market now I think. Sort of the same what happened to online poker. And what will happen is that a few players will get permission to operate these lottery's from the government so they have more visibility on their tax revenue from this market. AGtech has insiders who seem well connected and they will v likely get a license. This will probably happen within a year.

 

And then there is also this:

http://macaubusinessdaily.com/Gaming/China-sports-lottery-firm-eyes-opportunities-here

 

He is Permanent Honorary President of The Board of Supervisors of the Macao Chamber of Commerce. LOL. If you watch that list here:

http://www.acm.org.mo/index.php/en/acm-intro/organization/

 

Lots and lots of bureacracy. But he probably has more insider info on what is gonna happen.

 

What I am not sure about is what kind of income this will generate for AGtech, and how much that is priced in already.