What’s UP with GAN?
by littlep | September 16, 2020 7:13 pm
Does anyone understand why GAN’s price continues to decline. It seems like a fundamentally good stock in an area that I would expect to grow significantly (sports betting). Many “experts” are using price targets in the $25 to $30 a share range. Today it dropped significantly below $17. It continues to drop while competitors like Draft Kings and Kambi are doing well. Is it time to buy more on the dip, hold the significant share that I now own (down about 18%), or sell off some shares?
Source URL: https://www.stockgumshoe.com/2020/09/microblog-whats-up-with-gan/
It certainly is enigmatic. I bought in a month ago at ~21 and have watched it drop since. Yesterday I bet on fundamentals winning out and added to my position at 17, but once I get even I’m probably out.
As for a reason it Is underperforming, the only thing I can see is that their CEO, Dermot Smirfit, seems to be pretty quiet, i.e. not out there selling to investors. After 10 years at the helm, maybe it’s time For their Board to shake things up a bit…
I have puts that are in the money now. Thinking that I’ll accept the shares rather than sell at a loss today . Most times when I’ve exited a put ITM, it’s been a mistake in hindsight. Looking forward to your thoughts on current valuation.
I’m putting together my thoughts on GAN, and will share today or tomorrow once I’ve made a decision, but in terms of the price action I suspect it’s mostly that the “day trading” enthusiasm for the shares drove them much more than I expected in their early surge… and the departure of those traders, with a few pieces of “headline” bad news, drove the price back down more sharply. That’s entirely a guess, just trying to put a narrative to the stock chart… I’m trying to “blank slate” my thinking a little, refocus on the fundamentals, and make some valuation decisions.
After selling out a couple of months ago I started buying last week and this week. News hit that GAN is NOT part of the Barstool/PENN relationship. GAN confirmed that it WAS the simulated gaming provider for PENN. Who know if this “dissapointing” news is the reason for the selloff. Since fundamentals never matter these days, I’ll probably wait until $15 or so before buying more and stop out quickly if it keeps sliding. I think I’m around 2000 shares, assuming I get PUT the stock that Friday I wrote 17.50 options on. I’m with Travis here as the valuation seems reasonable but it could get more reasonable.
Appreciate you thoughts. For now am holding my shares and would consider adding a little to my position if it gets near 16 again. Nice to see a little upswing today. I do own some Draft King which has profited nicely off of their publicity. Also have taken a position in BETZ the gaming ETF, as this allows me to play the field, as I feel there will be a lot of profit in sports betting.