We’re going to go with an old stock talk today… Draft Kings… Honestly, yours truly choked this one because I sold on Monday prior to the ESPN deal, but think here for a second why Draft Kings has been in the news.
1) Sports are back… even more Big Ten Football is back (More on that later)
2) Micheal Jordan just signed on to be a special advisor… MJ and gambling could almost be synonyms.
3) Draft Kings just signed a deal with ESPN, truly putting sports gambling into the mainstream media.
Unfortunately, there stock has responded well, so if you’re not in already it it will be gritty. However, we think if you can snag Draft Kings below $50 a share it will be a good buy. Right now it is hovering around $51, but it is also up 7% today.
Commentary from the Under Two:
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Market opens down a percent this AM, we think the underlying reason is people are taking gains and it is a healthy pullback. The face value reason is because of mixed timelines on reopening and the corona vaccine annoynace. Just Stfu and let the vaccine come out. – On that note, Moderna said it will know by November whether its vaccine works or not, which technically puts Pfizer in first place with their timeline being October… watch out for results to be leaked sooner than these dates and the market to start to price-in these reopenings… Tech won’t like it but reopening stocks (Airlines, Cruises, Disney) will like… The President said he expects to know in four weeks.
Our stock talk from Monday, Snowflake had a big IPO debut. So big they actually had to halt trading within the first five minutes to close the gap. It opened up over 100% its IPO priced, and honestly we can’t justify buying at these prices… wait for it to fall back.
Draft Kings, Penn, Caeser’s all had big days yesterday and this morning on the Big Ten Football news. We’re still bullish on these companies and the industry as a whole.
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