DraftKings Inc (DKNG)

[aCryptoKing]

JB56 wrote:

Just read an article from Wash Post...kind of reiterated what Ive been thinking.....fans or no fans in attendance - very good chance no sports - College or Pro until Jan 2021. Even Kirk Herbstriet said "he'd be shocked if there was any football this fall". Can DK be put on ice until then without too much financial damage?

Look at their comments, filings, CASH-BURN & rationale for going SPAC to begin with: They "anticipated" closing the merger by/in "the first HALF of the year". So, they HAD some leeway & COULD have closed May 31st or June 1st. That'd been PREFERABLE (for longs here) imv.

BUT, THEY NEED MONEY! That's the reason. Shareholders are going to GET DILUTED here. They'll burn through that $400mm (if they haven't ALREADY borrowed against & allocated), the political environment (with U.S. elections means NO LEGISLATION on legalizing gambling UNTIL mid-2021 prolly) AND Globally COVID-19 strains same mechanism.

With NO sports, a preoccupied political system, & long-term GLOBAL PANDEMIC, this company faces; NO REVENUES, on-going costs, & headwinds with NO MECHANISM for relief: EXCEPT tapping shareholders here! They'll DILUTE & leverage capital markets off the backs of SHAREHOLDERS because they're options are VERY LIMITED. Just a crap storm of unfortunate circumstances... They could AT LEAST delay till end of May/June when the picture would be CLEARER. But I think they don't HAVE A CHOICE: They NEED the Capital! (And shareholders are going to pay, till revenues start coming in. ESPECIALLY if it is, in fact, 2021 before sports resume).


Just my $0.02...