At the other end of the spectrum, Italian lottery/gaming operator GTECH (MIL:GTK
)’s stock price dropped after rumors emerged of a potentially expensive acquisition of a casino machine equipment manufacturer, which would add more debt to GTECH’s balance sheet. In addition, U.K. homebuilders were weak due to concerns that regulators were trying to dampen the housing market. However, at quarter end, the Bank of England came out with relatively benign lending guidelines already being followed by the banks, and share prices rebounded.
From Bernard Horn
)’s Polaris Global Value Fund Second Quarter 2014 Shareholder Letter