Our iGaming Share Review (1-15 February) looks in depth at the market performance of gambling stock for the beginning of February for investors (Image by Annie Spratt at unsplash.com)
We are back to have a look at how gambling stock has performed for the first 2 weeks in February. The whole market endured a tough January following uncertainty surrounding covid restrictions and other uncertainties, as noted in our previous share report. Gambling stock was not able to sustain the movement of the market, too, but have they been able to bounce back since turning the page on the calendar? Here’s what we found.
888 Holdings (888.L) 888 Holdings investors will be glad to see the back of January, after a month of hitting multiple 6-month lows. We had an inkling at the end of the month that it may well be a good time to invest in the company that owns several popular brands, such as 888casino and 888sport, for a price of 255 GBX per share. Well, there was good reason to have this inkling, as the stock showed steady gains throughout the first two weeks of February, eventually finishing at a more respectable price of 270.20 GBX, which is still an estimated 54.1% below its fair value. Although investors may have squinted a little when it dropped to 250 GBX on the 4th of February, that turned out to be just a textbook retrace. This stock is surely a steal for a company with a net income of 11.3 million USD.
Aristocrat (ALL) Aristocrat can probably now admit defeat in its purchase of Playtech and start to concentrate on building in-house. In typical relaxed, Aussie-style, the stock hasn’t done much in the first couple of weeks of the month, with the occasional 1% increases and dips. The stock is up for the month though, going from 40.35 AUD at the end of December, to trading at 40.98 AUD by the close of business on the 15th of January. Again, we have another positive looking stock, and this could well be the calm before the storm as there are definite signs of an upward trend, but the next test will be 41.50 AUD, so we will see in our next iGaming Stocks & Shares Watch report whether the trend has escalated.
Evolution (EVO) Finishing the month at 1135.40 SEK, the live casino giant, Evolution, has been the worst-performing stock that we have been keeping an eye on during this period. The highs of 1288 SEK that were seen on the 14th of January seem to be nothing but a distant memory right now, with the stock trading at 1080 SEK at the close of trading on 15th January. Investors will be left wondering why, as the stock rose as expected following the release of Evolution’s end-of-year financial report, where it was reported that profits had doubled for the year. There seems to be a bit of support present around the 1075 mark, as the stock has been bouncing around this price. So, it does finally seem likely that this is the beginning of an upward trend.
LeoVegas (LEO) We feel for LeoVegas shareholders, as the stock doesn’t seem to know what it’s doing from one moment to the next. However, this volatility can sometimes bear fruit, as is the case here. The LEO stock closed at 35.24 SEK on the 15th of February, up from the 33.74 SEK 31st of January price. That represents a nice and steady increase of 4.44%, a far cry from the 10% dip investors had to endure at the start of January. We spoke in our previous report about a significant test of resistance that LeoVegas was approaching. 34.70 was a key price point for investors, so they will be thrilled to see the stock breakthrough with some force. There will be a big sigh of relief, we would also assume, after the January headache.
Scientific Games (SGMS) We watched the SGMS stock and couldn’t help but smile as the stock recovered back to full strength after being battered in January. We previously mentioned that the stock was knocking on the door of 58 USD, which was a loss of nearly 7 USD from the beginning of January. Well, the stock has returned to its former price, and then some. Since our previous report, SGMS has gained 7.05 USD per share, to be valued at 64.75 USD, which is a gain of 12.2%. Something else to note is that SGMS broke 65 USD on the same day, but couldn’t maintain the price until the end of the day. That will be the next point of interest for investors, with the stock looking certain to break it convincingly at some stage during this mini bull run.
Playtech (PTEC.L) The uncertainty surrounding Playtech and its buyer is coming ever closer to being finished, as news of a firm offer has been confirmed. Following a bit more of a certain future, Playtech stock behaved naturally, showing steady gains to 660 GBX on 15th February, up from a price of 584 GBX when trading closed on 31st January. Right now, Playtech is around 25% below its fair value estimate, representing a bit of a bargain for investors in growth stocks. With revenue forecast to grow by around 10%, the stock is about as stable as they come. However, until a takeover is complete, we can expect a fair amount of volatility in the price.
Entain plc (ENT) It’s good news for ENT holders, as their loyalty to the stock was rewarded with a handsome percentage increase. January saw a 5.69% price reduction, but it would seem that the stock was involved in some sort of January Sale. Entain purchased Avid Gaming for 300 million CAD on the 7th of February, as it displayed clear financial health. The stock has risen from 1591 GBX at the end of January, to 1704 GBX by the 15th of February, and making strong moves towards that all-important 1724 level of resistance.
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