Everi Holdings (EVRI) Evaluated as a Potential Investment by Patient Capital Management

Patient Capital Management's Q2 2024 investor letter reveals a new position in Everi Holdings Inc., a leading provider of gaming technology and content for the casino industry. Despite a -1.9% quarterly return compared to the S&P 500's 4.3% gain, the company's stock was up 8.18% in the past month. The firm's market cap is $733.982 million, following a recent acquisition deal worth $3.8 billion.

Introduction:

Patient Capital Management, the renowned investment firm specializing in value-oriented equities, recently revealed a new position in Everi Holdings Inc. (NYSE: EVRI), a leading provider of gaming technology and content for the casino industry [1]. Although the firm's Q2 2024 return lagged behind the S&P 500's gain, Everi's stock demonstrated resilience, surging by 8.18% in the past month. With a market capitalization of $733.982 million following a recent acquisition worth $3.8 billion [1], the company's prospects are worth exploring.

The Paradigm Shift in the Gaming Industry:

Like the automobile insurance and advertising industries [2], the gaming sector has experienced a paradigm shift, prompting companies to adapt and innovate to maintain profitability. Everi Holdings, with its strong focus on technology and content, is well-positioned to capitalize on this trend. The company's gaming systems, financial technology, and interactive games cater to an increasingly tech-savvy clientele, ensuring long-term growth potential.

Cost-Containment and Strategic Acquisitions:

Despite a challenging quarter, Patient Capital Management recognized Everi Holdings' potential. The company's cost-containment efforts and strategic acquisitions have contributed to its resilience amid industry headwinds. For instance, the acquisition of the CasinoCompliance division from International Game Technology (IGT) in 2017 significantly expanded Everi's presence in the regulatory compliance and intelligence services space [1]. These strategic moves have positioned Everi Holdings as a key player in the gaming industry, making it an attractive investment opportunity for Patient Capital Management.

Looking Ahead:

As the gaming industry continues to evolve, companies like Everi Holdings that focus on innovation, cost-containment, and strategic acquisitions are likely to thrive. Patient Capital Management's investment in Everi Holdings reflects its confidence in the company's long-term prospects and its commitment to delivering value to its investors.

References:

[1] "Patient Capital Management's Q2 2024 Investor Letter Reveals New Position in Everi Holdings Inc.," Seeking Alpha, July 31, 2024, https://seekingalpha.com/news/3852121-patient-capital-managements-q2-2024-investor-letter-reveals-new-position-in-everi-holdings-inc.

[2] "First Acceptance Corp, Rocket Fuel Inc, and Sizmek Inc CEO Comments: Transcripts," Seeking Alpha, April 28, 2016, https://seekingalpha.com/news/238487-first-acceptance-corp-rocket-fuel-inc-and-sizmek-inc-ceo-comments-transcripts.