" SAL obviously helps and extends JIN's earnings duration, but I doubt SAL on its own would generate anything near the current earnings level that JIN currently enjoys given the scale differences against its existing operations. If you're relying on SAL for, as you term it, a "critical anchor" to valuation support at JIN prices around current levels I'd be very interested in an outline of the rough numbers behind your reasoning "
My understanding is that SAL are the lottery originators, not an operating jurisdiction for JIN. Lottery products sourced/supplied by SAL are sold by JIN online nationally just as Tatts product is, with the exception of Queensland I believe. My anchor comment addresses an income source independent of Tatts for the purposes of any JIN valuation. If in the next 5 years the JIN business does not grow by a significant factor in either the Australian market, or moreover, the US market, I'd be extremely surprised.
time will tell.
JIN Price at posting:
87.0¢ Sentiment: Buy Disclosure: Held
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