TCCoA Forums banner

321 - 323 of 323 Posts

·
Registered
Joined
·
2,550 Posts
Discussion Starter #321
CDB:
ACB is at $16ish today (up 70%) after saying that they are entering the US CBD market.
Yeah, I saw that.

This is another, "should I buy ACB or AMD shares" moment for me. :cautious:

Just gotta chalk it up to not being able to predict the market.
 

·
Registered
Joined
·
2,852 Posts
Here's another idea I just discussed with a friend that could use some more research if you folks are so inclined.
1) Some markets, like commercial REITs, are getting totally pounded. I think this market is due for a shakeup as I'm skeptical some struggling stores/business types, like Gamestop and movie theaters, will go the way of BlockBuster. I'm not enough of a gambler to speculate on these.

2) One market a friend of mine suggested that merits further evaluation is gambling: not necessarily the ones with traditional casinos but the ones which focus on online gambling. While they may not be worth it now (almost everything bounced back), their revenues are down b/c of no sports to bet on SO they could be good buys in a future dip (or by selling puts)
DKNG - DraftKings aka 60% of the US fantasy mkt
PDYPF - owns 50ish% of FanDuel, big betting house in the UK so has both retail and online exposure.
MGM
ERI

I'll do more research later but what do you guys think? Historically, some gambling (lotto) is recession proof while others (traditional casinos) get hammered in recessions. however, they always bounce back.
 

·
Registered
Joined
·
2,852 Posts
I did a little more homework on DraftKings (DKNG)

Recent IPO @ $10.64/share
Pandemic Dip Price @ $11.17/share
Currently @ $35.24/share (IMO a little crazy considering there's very few sports to bet on)

FWIW, DKNG claimed little/no impact on FY2021 revenues expected from Covid19.

Aug 21, 2020 options
Strike Price $22.50 - puts can be sold @ $1.25/ea ($125 premium for locking up $2250 = ROI 5.56% or APY if you hold until expiration 24.14%
Strike Price $30 - puts can be sold @ $3.90/ea ($390 in your pocket for locking up $3K = ROI 13% or APY 56.49%.

Now clearly, selling a put at $22.50 might make sense if you think the stock is worth that price.
I need to research the fundamentals more but I wouldn't object to owning the stock @ $22.50 long term. I'm less excited about owning them @ $30 or $35 (market price) though.

---
I'm not sure I want to invest in PDYPF but ERI and MGM are bets on Vegas casinos.
Both are trading ~50% of their highs.

Vegas is planning to open up on 6/4/2020. Considering summer is historically a slower season for Vegas (it's damned hot in the desert), I wonder if they will see a significant boost.
 
321 - 323 of 323 Posts
Top