I don't think I'll ever get a job hosting 7:30.. Some of these CEO interviews are like Sean Hannity interviewing Trump..

So apologies for being a bit like a gushing groupie sometimes. But Mike represents so much of what I like in a CEO:

Plain speaking, humble, clear focus and vision, lots of skin in the game, founder, engineering background.

At this point, the guy is worth at least $134m (only counting his Jumbo shares) and he's still in there chasing a bigger vision. Last time he sold shares was April 2022, from what i can tell, and that was only about 5% of his total holding.

Mike stressed a couple times that it was their in-house developed tech that was their moat, saying it'd take (from memory) $100m and 3years+ for someone else to emulate their tech stack.(not that we should take that at face value)

fwiw, they only carry around $16m of capitalised development spend on their balance sheet (most has been amortised away) and last year they spent $6.5m on software development, and $5.5m the year before that.

I think his read on the regulatory landscape made sense -- why would government kill off a big source of revenue, especially when this form of gambling, er I mean "gaming", doesn't tend to have negative social impacts (unlike pokies).

Counterparty risk with ASX:TLC is not a thing until 2030, and at this point Jumbo have a much better negotiating position (although again, we may need to push back on that a bit for the sake of intellectual honesty). At any rate, Mike is clearly a long term thinker, and is looking to continue to diversify away from that single source of revenue, targeting 50% revenue from SaaS and Managed services by then.

In the meantime, they have wonderful cash flows to fund their expansion and it looks like they are being very conservative in their plans.

Anyway, capital light, founder led, economically acyclical, strong balance sheet and cash flows -- what's not to like?

I still think shares are reasonable value (see my valuation). Maybe I've been too kind on some assumptions, but even if you pull things back a bit I think you have a current price that is far from expensive.

Another way to look at it is that you have analyst's forecasting a FY24 dividend of 58c. Well, let's call that 50c which represents a forward yield of 4.7% (grossed up for franking), which aint bad for a company that has delivered such strong growth over the years, and that has plenty of runway left.

Anyway -- as always, keen for a different perspective.