Great Canadian Gaming Corp. (TSX:GC) stock was up 1.48% in early afternoon trading on June 26. Shares have surged 39.6% in 2018 on the back of positive earnings and the potential revenue stream offered up in the landmark GTA bundle deal. The stock is up nearly 100% year over year.
However, the stock has plunged 11% week over week. This has been in the midst of a broader sell-off on the TSX with trade tensions weighing on equities. Great Canadian Gaming has had a monster year so far, and looks poised to continue its run as it is well positioned to maximize the return on its assets. Should investors be willing to fork over top dollar for the stock today?
Great Canadian Gaming released its first-quarter results on May 9. Revenues rose 62% year-over-year to $230.5 million as the company began realizing the contributions of the GTA bundle for the first time since the January acquisition. Adjusted EBITDA also surged 84% to $88.9 million in the quarter. It was a remarkable start overall for Great Canadian Gaming, and the company plans to make renovations that should improve the performance at its GTA locations going forward.
Investors may want to take advantage of the retreat in the stock price for Great Canadian Gaming. Its assets are revenue machines and with its upgrades to new locations it should churn out solid numbers for the duration of its 22-year agreement with Ontario.
