Jul. 26 at 7:54 PM
$DDI - DoubleDown Interactive has a balance sheet of ~
$8 per share. Although the business is at risk, it is still at the moment generating good returns per dollar.
The risks are however, very real:
- Serious regulation risks with IGT attempting to pull their license citing a memo that was sent out by Washington State Gambling Commission.
- The company has not had a history of returning value to their shareholders. The request to distribute a dividend by STICS was denied, who then later sold their holdings.
The concern is the company will continue to hoard cash and make decisions that will not benefit the shareholders.
Despite the risks, I believe the liquid assets and the income they are generating serves as a floor price. Their recent acquisition in WHOW also shows they are making an attempt to mitigate the risks in their core business, which is currently in the high 80% of all their revenue.
I am currently holding
$DDI
