Market Cap = $37m. Debt = $40m USD. Made $5m in 4 months. So...

Market Cap = $37m.

Debt = $40m USD.

Made $5m in 4 months. So still profitable.

Read below - paid $360m for 1 casino. This company is well below replacement value and still profitable despite its issues. The Lim brothers part of Genting. This will likely not have a stratgic review, but rather a takeover. Obviously one large insto has had enough, but they only manage other peoples money!

Pin your ears back on this one. Mid teens takeover IMHO






It was in January 2015 that the ASX's quiet achiever of casinos, Donaco, paid $US360 million for Star Vegas – a Cambodian gambling den a long way from Nevada, just on the wrong side of the Thai border. The purchase price, regardless of currency impact, is now vastly south of the group's market cap of $345 million.
Donaco snagged the rights to run Star Paradise next door in August 2016, but has already lost the contract. And its Aristo property, just over the Vietnamese side of China's border, where one of Phil Lowe's 5¢ coins would need its own titanium briefcase and whose VIP nights are launched not by Beyonce but Manchester United's team of 1992 (lucky them!). Seeing a pattern here? If not, just imagine Alice Springs' Lasseters a few metres inside the atmosphere of Mars.
Donaco's managing director Joey Lim, a grandson of Genting founder Lim Goh Tong, offloaded 37.5 million shares in recent days, reportedly (the relevant filings are yet to be lodged) raising $15 million for "private and family reasons". His statement stressed his continuing confidence in the stock, and that "I firmly believe Donaco's shares are undervalued" at 41¢ a pop. Possessed of such strategic confidence, who'd imagine the young tycoon would need such trifling liquidity.
Donaco International's Cambodian paradise. Imagine Alice Springs, but properly humid. Donaco International
But Canaccord sees something we don't, vigorously reiterating its buy rating on the stock in a Tuesday note, and a price target of 72¢. Coincidentally, the firm raised $130 million for Donaco's purchase of Star Vegas back in 2015. Or maybe the analyst just got a taste for the place.