Friday, June 01, 2018 1:40:19 PM
There is only one catalyst I can think of
As you probably know, the Federal ban on sports betting was overruled recently. British bookmakers like William Hill (OTCPK:WIMHF) will be looking to expand in the U.S. after this decision. The question is, who else might venture in the space?
While bookmaking is not the same as online poker, nevertheless ZNGA might attempt to venture in the space. Several years ago the company almost ventured into the real money games, so it might attempt again now that this time it would be legal.
And while we do not have any indication that the company might venture into sports betting, it is something that might be a catalyst and will give ZNGA shares a whole new spin.
Bottom line
I do not consider ZNGA's result such that warrant buying its shares at current prices. The company needs to increase profitability substantially to get my interest, and it does not seem that profitability will increase anytime soon.
Getting in the sports betting space might be a catalyst, but the company is still very far from making such a decision.
At the current valuation, and talking into account guidance, I will give the market the benefit of the doubt and say ZNGA shares trade at around fair value. But fair value is not a buy in my book.
Transforming Alzheimer's Treatment: Innovative Combinations to Boost Cognition • PFE • Oct 2, 2024 9:00 AM
Unitronix Corp Unveils Cryptocurrency Investment Portfolio Strategy • UTRX • Oct 2, 2024 8:40 AM
Integrated Ventures, Inc Reports Total 2024 Revenues Of $5,863,935 vs $3,862,849 for 2023. • INTV • Oct 1, 2024 9:00 AM
Nightfood Signs Letter of Intent to Acquire Los Angeles Cooking School, Integrating Automation and Robotics with World-Class Culinary Training • NGTF • Oct 1, 2024 8:30 AM
ZenaTech, Inc. (NASDAQ: ZENA) To Commence Trading Today • COOP • Oct 1, 2024 7:00 AM
Element79 Gold Corp secures loi for launching tailings reprocessing business in Arequipa, Peru • ELMGF • Oct 1, 2024 6:38 AM