The Edge Group LLC - MODERN TIMES GROUP MTG LTD (1556090Z) Near-Term Catalysts Appear to be Priced-In, Exits MP

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The Edge Group LLC

Alexander Korda

EUR 91.79 For Business Accounts Only

Near-Term Catalysts Appear to be Priced-In, Exits MP

Modern Times Groupâ€™s (MTGB SS) recent 1QFY20 earnings came in again lower than expectations. Longer-term, MTGB still has positive catalysts with either the sale or the US listing of its online gaming segment. However, with the potential near-term pressure on the stock and the removal of company guidance for the rest of its FY20E, weâ€™ll be exiting MTGB from our Model Portfolio.

MTG Releases Q1 2020 Earnings Results / Near-Term Catalysts Appear to be Priced-In
Long-Term Catalyst: Potential Sale of its Gaming Segment (Fetch SEK 4.3bn to SEK 5bn) / Listing on the Nasdaq
Cutback in Sponsorship Spends a Key Negative / Other Partnership Deals Not Enough to Offset Impact
Target Price Maintained / Limited Upside from Base Case
Recommend Exit / MTGB SS to Exit Our Model Portfolio at the end of Tomorrowâ€™s (May 6) VWAP Holding

05/05/2020 2 EN

Underlying

MODERN TIMES GROUP MTG LTD

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Provider

The Edge Group LLC

The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.

The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.

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Analysts

Alexander Korda

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Near-Term Catalysts Appear to be Priced-In, Exits MP

Monthly LMI Update Independent Investment Research

Feasibility Study Results in December to be a Catalyst for this Junior

+20% Rally Since May 28 Entry, Revised Valuation Shows Further Upside

Significant Upside Ahead for Major Games Publisher

Industrials Stocks Exit the MP with 37% and 54% Returns

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