INTRALOT: Closer Than Ever to Listing on the U.S. Stock Exchange
INTRALOT's stock continues on a downward trajectory, raising questions among investors and analysts about the company's future. At the same time, INTRACOM Holdings, a company connected to Sokratis Kokkalis, is increasing its stake in INTRALOT through continuous stock purchases. This move could be aimed at further consolidating Kokkalis' control over the company.
INTRACOM's Strategic Moves
Despite the declining stock price, INTRACOM Holdings, linked to Sokratis Kokkalis, appears to have a different outlook on INTRALOT's future. On October 10, 2024, INTRACOM purchased 100,000 common shares of INTRALOT, valued at €107,440. This move continues a series of purchases by Kokkalis, who has significantly increased his stake in the company over recent months.
According to the latest reports, Kokkalis directly holds 20.5% of INTRALOT shares, while through INTRACOM, he controls an additional 9.5%, making him the company's largest shareholder with control over nearly 30% of the total capital. This strengthens his position as the dominant shareholder, compared to CQ Lottey LLC, owned by Soohyung Kim, which controls 26.8%.
The U.S. Market and the Potential Listing on the U.S. Stock Exchange
The U.S. market has become a focal point of INTRALOT's strategy. The company aims to secure contracts in major states and is also considering the possibility of listing its subsidiary, INTRALOT Inc., on the U.S. Stock Exchange. While this plan is not yet finalized, it remains one of the group's most ambitious goals.
According to Kokkalis, INTRALOT Inc., which operates in the U.S., has the potential to become one of the largest players in the American gaming industry. The company already manages contracts in states like Illinois, Nebraska, and Missouri. It has submitted bids for significant projects, including monitoring 50,000 VLTs (Video Lottery Terminals) in Illinois, as well as contracts in Canada and Australia, further boosting its global gaming market prospects.
Listing INTRALOT Inc. on the U.S. Stock Exchange could generate significant value for the parent company’s shareholders, potentially raising new capital and investments to help reverse the current downward trend in the stock price.
Performance and Financial Results
Despite the stock’s decline, INTRALOT continues to post significant financial successes. In the first half of 2024, the company's revenue stood at €173.6 million, a slight 0.9% decrease compared to the previous year, mainly due to currency fluctuations in Argentina. EBITDA earnings reached €59.5 million, down by 5.3%, while net profits rose to €4.6 million, a 4.4% increase over the same period in 2023.
The company’s management remains optimistic about the second half of the year, with anticipated agreements in the U.S. and improvements in the Turkish and Argentine markets expected to boost revenue. INTRALOT has also invested in new technological systems, such as transitioning British Columbia Lottery Corporation to the cloud-based LotosX Omni system, making it one of the first lotteries worldwide to operate entirely in the cloud.
Technical Analysis
INTRALOT's stock continues its downward trend, as indicated by market technical data. The Relative Strength Index (RSI) is at 23.75, suggesting the stock is oversold. An RSI below 30 indicates the stock may be undervalued, which could lead to a potential rebound if the trend reverses.
At the same time, the 20, 50, 100, and 200-day Exponential Moving Averages (EMAs) are all negative. Specifically, the stock's price is below these averages, with the 20-day EMA showing a -5.80% deviation and the 200-day EMA at -2.51%. This situation indicates that selling pressure remains high, and the overall trend is bearish.
The Moving Average Convergence Divergence (MACD) also signals a downward trend, as the histogram remains negative. This combination of technical indicators suggests no clear signs of a trend reversal, at least in the short term.
Investors are advised to closely monitor support levels at €1.084 and €1.058, as well as resistance levels at €1.17 and €1.198. Despite increased trading volume, the bearish trend remains strong, and technical data suggest the stock may continue to move lower.
RSI (Relative Strength Index): The RSI is at 23.75, indicating the stock is oversold. Values below 30 on the RSI imply the stock may be undervalued and could potentially see a rebound.
MACD (Moving Average Convergence Divergence): The MACD (-0.0172) is lower than the signal line (-0.0130), while the histogram is also negative (-0.0042), indicating a bearish trend and that selling pressure is greater than buying.
EMA (Exponential Moving Averages): The 20, 50, 100, and 200-period EMAs show that the stock’s price is below all the key moving averages, which is typically interpreted as a bearish signal. The deviations range from -2.51% to -5.80%, with the shortest-term EMA showing the largest deviation, confirming the intensity of the downward pressure.
Support and Resistance Levels: The chart indicates support levels (S1) at €1.084 and S2 at €1.058, acting as strong points that may halt further declines. Resistance levels (R1) are found at €1.170, with the next resistance at €1.198.
Fibonacci Levels: From the Fibonacci levels on the chart, the 0.236 and 0.382 levels are close to the current price, with the market moving towards lower levels.
INTRACOM's Strategic Moves
Despite the declining stock price, INTRACOM Holdings, linked to Sokratis Kokkalis, appears to have a different outlook on INTRALOT's future. On October 10, 2024, INTRACOM purchased 100,000 common shares of INTRALOT, valued at €107,440. This move continues a series of purchases by Kokkalis, who has significantly increased his stake in the company over recent months.
According to the latest reports, Kokkalis directly holds 20.5% of INTRALOT shares, while through INTRACOM, he controls an additional 9.5%, making him the company's largest shareholder with control over nearly 30% of the total capital. This strengthens his position as the dominant shareholder, compared to CQ Lottey LLC, owned by Soohyung Kim, which controls 26.8%.
The U.S. Market and the Potential Listing on the U.S. Stock Exchange
The U.S. market has become a focal point of INTRALOT's strategy. The company aims to secure contracts in major states and is also considering the possibility of listing its subsidiary, INTRALOT Inc., on the U.S. Stock Exchange. While this plan is not yet finalized, it remains one of the group's most ambitious goals.
According to Kokkalis, INTRALOT Inc., which operates in the U.S., has the potential to become one of the largest players in the American gaming industry. The company already manages contracts in states like Illinois, Nebraska, and Missouri. It has submitted bids for significant projects, including monitoring 50,000 VLTs (Video Lottery Terminals) in Illinois, as well as contracts in Canada and Australia, further boosting its global gaming market prospects.
Listing INTRALOT Inc. on the U.S. Stock Exchange could generate significant value for the parent company’s shareholders, potentially raising new capital and investments to help reverse the current downward trend in the stock price.
Performance and Financial Results
Despite the stock’s decline, INTRALOT continues to post significant financial successes. In the first half of 2024, the company's revenue stood at €173.6 million, a slight 0.9% decrease compared to the previous year, mainly due to currency fluctuations in Argentina. EBITDA earnings reached €59.5 million, down by 5.3%, while net profits rose to €4.6 million, a 4.4% increase over the same period in 2023.
The company’s management remains optimistic about the second half of the year, with anticipated agreements in the U.S. and improvements in the Turkish and Argentine markets expected to boost revenue. INTRALOT has also invested in new technological systems, such as transitioning British Columbia Lottery Corporation to the cloud-based LotosX Omni system, making it one of the first lotteries worldwide to operate entirely in the cloud.
Technical Analysis
INTRALOT's stock continues its downward trend, as indicated by market technical data. The Relative Strength Index (RSI) is at 23.75, suggesting the stock is oversold. An RSI below 30 indicates the stock may be undervalued, which could lead to a potential rebound if the trend reverses.
At the same time, the 20, 50, 100, and 200-day Exponential Moving Averages (EMAs) are all negative. Specifically, the stock's price is below these averages, with the 20-day EMA showing a -5.80% deviation and the 200-day EMA at -2.51%. This situation indicates that selling pressure remains high, and the overall trend is bearish.
The Moving Average Convergence Divergence (MACD) also signals a downward trend, as the histogram remains negative. This combination of technical indicators suggests no clear signs of a trend reversal, at least in the short term.
Investors are advised to closely monitor support levels at €1.084 and €1.058, as well as resistance levels at €1.17 and €1.198. Despite increased trading volume, the bearish trend remains strong, and technical data suggest the stock may continue to move lower.
RSI (Relative Strength Index): The RSI is at 23.75, indicating the stock is oversold. Values below 30 on the RSI imply the stock may be undervalued and could potentially see a rebound.
MACD (Moving Average Convergence Divergence): The MACD (-0.0172) is lower than the signal line (-0.0130), while the histogram is also negative (-0.0042), indicating a bearish trend and that selling pressure is greater than buying.
EMA (Exponential Moving Averages): The 20, 50, 100, and 200-period EMAs show that the stock’s price is below all the key moving averages, which is typically interpreted as a bearish signal. The deviations range from -2.51% to -5.80%, with the shortest-term EMA showing the largest deviation, confirming the intensity of the downward pressure.
Support and Resistance Levels: The chart indicates support levels (S1) at €1.084 and S2 at €1.058, acting as strong points that may halt further declines. Resistance levels (R1) are found at €1.170, with the next resistance at €1.198.
Fibonacci Levels: From the Fibonacci levels on the chart, the 0.236 and 0.382 levels are close to the current price, with the market moving towards lower levels.
Penafian
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