NYX Gaming Group (NYX:TSXV) was up 5% Monday on above average volume of nearly 800,000 shares traded by 1:34 PM EST.
NYX Gaming prepares to report Q3 financials
NYX Gaming has been among the most liquid stocks on the TSX Venture and has an increasingly common trait among the top traded issuers: significant revenue.
After NYX Gaming Group put up 88.2% gross margins in Q1 and 85% gross margins in Q2, investors have to be wondering if the company can keep up its strong margins. NYX Gaming provides market leading content and technology to some of the largest lotteries, casinos and gaming operators in the world.
With NYX Gaming’s second quarter financials having been reported on August 27th, nearly 3 months ago, its 3rd quarter results should be published in the next few weeks. I wrote about the company’s high gross margins following its Q1 results:
“NYX Gaming reminded investors why its market cap has remained in the rather impressive $150 million range Thursday when it released its Q1 financial results.
NYX Gaming puts up record quarter and 88% gross marginsNYX Gaming’s 88.2% reported gross margins in the first quarter could very well be near the highest margins of any company on the TSX Venture (to my knowledge). These are impressive margins for any company, and blow away the majority of tech companies out there.
Just to give you an idea, Apple, the largest and most successful tech company on earth, had gross margins of 39.9% for its fiscal Q1 2015. Apple’s gross margins got as high as 47.4% in Q2 of 2012. While Apple clearly plays on a different level, and in a different industry, netting record quarterly net profit of $18 billion in Q1 2015, it can only dream of 88% gross margins.”
Click here to read the entire article.
The company’s gross margins remained high for the second quarter, coming in at 85.0% for the three months ended June 30th, 2015.
In a BNN article, titled Top Picks from Eric Nuttall: NYX Gaming, Crescent Point Energy, and Air Canada, Nuttall, a portfolio manager at Sprott Asset Management, talks about why he likes NYX Gaming:
“Investors suffered from “temporary stupidity” when they stock sold off by over 33 percent in a few days’ time off of poor earnings from Amaya. NYX had zero exposure to the area of weakness within Amaya (Poker) but rather significant exposure to the area that grew by 24 percent sequentially (online casino) and is a large part of Amaya’s growth strategy in 2016.”
Click here to read the entire article and watch the video associated.
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Insider selling in NYX Gaming
According to David Flynn’s LinkedIn page, he has been Senior Vice President Business Development at NYX Gaming Group since January 2014.
Flynn has been a net seller in the company’s open market since September according toCanadianinsider.com. Flynn sold 152,301 shares at a price of $2.74 on September 18th and then between September 25th and October 29th sold a total of 97,699 shares between a low of $2.74 and a high of $3.00, according to Canadianinsider.com.
NYX Gaming – 1 Year Chart
NYX Gaming has had a volatile year, but has proven it can grow revenues and execute acquisitions in a less than favorable market. The company’s pending Q3 financial results should shine more light on the direction this innovative gaming company is heading. NYX Gaming is in the right sector (anything but commodities) and has establish a trend of growing revenues. This combination will lend it access to a variety of capital sources and interest from investors in the months ahead.
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