Our iGaming Stocks Watch Issue 5 (16-28 February) looks at the ongoing market performance of gambling stock for the end of February for investors (Image by Nick Chong at unsplash.com)
What a week it has been for the entire stock market. The ongoing invasion of Ukraine by Russia has caused pandemonium in every exchange around the world, as sanctions have been implemented, which have had a knock-on effect for many companies, and it has come after many gambling stocks showed great signs of recovery from a terrible January, as we covered in our previous iGaming Stocks and Shares Watch. We are going to have a look at the market performance for the last 2 weeks, and see if gambling stocks avoided the financial impacts of the Russian assault, or if they look to be going back to what we all saw in January.
888 Holdings (888.L) 888 Holdings investors, look away now. It has been a devastating 2 weeks for this stock that floats on the LSE. The tensions in Ukraine seemed to have an early impact on this stock price, as investors sold for fear of Britain getting involved in a war. The stock plummeted from 265.76 GBX on the 16th of February, to a catastrophic 240.38 GBX by the 28th of February. Unfortunately, we can see the price falling further as the uncertainties continue. It’s amazing what impact world news can have on a stock, and it is even more amazing to think that this stock was trading at an all-time high of 457.99 GBX just 5 months ago. We are sure that those days seem like a distant memory for long-term investors, but we are confident that they can return. With a bi-annual dividend yield currently at around 5.5%, we are calling this one a ‘Buy and Hold’. Ride this dip, and keep the faith.
Entain plc (ENT) Entain recovered well in the first couple of weeks of February, however, it would seem that it was an over-reaction from the market, and there was not enough buying power for it to get anywhere near the important 1724 GBX price. The stock took a tumble, and as it is a UK stock, and with the Russia / Ukraine situation, a big dip was always likely. The stock managed to get back to 1684 GBX by the 28th of February, but we feel that the 94 GBX bull run in just 4 days was a little deceptive, and we should now see quite a strong correction.
Evolution (EVO) EVO stock endured strange behaviour at the start of February, as even though Evolution announced double profits for the year, the stock price took a dip. Anyway, as we expected, the upward trend continued following a brief correction, which saw EVO stock finish the month at a healthy 1100.80 SEK. Investors will surely be happy, as it is closing on the 1135.40 SEK it has at the end of January. The key now is for the stock to break the 1177.00 SEK resistance level, as then we should see it return to the highs of January and beyond. Fingers crossed.
LeoVegas (LEO) This should be renamed the ‘Yo-Yo’ stock, as it is constantly up and down. We reported a 15th of February price of 35.24 SEK, but of course, it was never going to stabilise around that price, and in typical fashion, it took a big dip 10% dip to 32.10 SEK by the 21st of February. The price recovered again to finish the month at 33.64 SEK, but we have a suspicion that it is possibly on a downward trend for now. The good news is, that trends in this stock don’t last for long, so investors will probably be smiling again in no time at all.
Playtech (PTEC.L) We are seeing powerful movements now in Playtech stock, following the situation regarding its buyout that is becoming clearer by the day. The CEO of Playtech has announced his intentions to join the Hong Kong group that is expected to buy the company. This has given shareholders a lot of confidence moving forward, as it was feared that the group was not experienced enough in the iGaming industry. Having Mor Weizer onboard would certainly put an end to those fears. The initial drop on the 19th of January, from 724 GBX to 578 GBX on the 21st of January, was a clear over-reaction. The stock recovered well in the early parts of February, and although the stock is pretty volatile as we predicted, there is a clear upward trend forming. The stock price is looking very stable, and once a takeover is complete, it should explode. PTEC.L finished the month at a firm price of 664.40.
Scientific Games (SGMS) We were happy to see that SGMS seemed to get back on track as it recovered well from January. We noted that around 65 USD would be a key price point for this stock as if it managed to break it convincingly, then it could be the start of an upward trend, but if it couldn’t then strong resistance could see the stock price plummet. Well, resistance proved fatal. The stock took a big dip when hitting 66 USD. It is certainly not ideal for investors that the stock dropped to 62.79 USD at the close of business on the 28th of February, and we are now predicting another dip, at least temporarily until it finds a level of support, which is somewhere around 56 USD. That is where another push will probably take place if there is one.
Aristocrat (ALL) 40.98 AUD was the share price for the Australian stock ALL, but with Aristocrat having offices in Russia, it was never looking likely that it could sustain its price, let alone see it rise. 37.27 AUD was the price at the close of the month, and we feel like there is still plenty of room for it to dip more, unfortunately. Any company with offices in Russia right now is feeling the tightening grip of the sanctions that the country is facing from all areas of the globe. A rough ride ahead potentially for this stock, but Aristocrat Leisure has always been a solid company, and a solid investment. If there is any stock that can bounce back, it is this one. The stock is around 10% down for the past 30 days, which is not too bad when compared to other Russia-related companies.
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