This Sports Betting Company Could Collapse 50%
Optimism toward a sale looks misguided
Highlights:
Shares of this online gambling business have gained 76% since mid-January. The catalyst is a report the company is looking to sell itself.
But the pool of buyers is exceptionally thin, and the nature of the business suggests minimal synergies.
Even in a best-case scenario, shares have built in much of the potential premium.
If a sale doesn’t materialize, the bull case collapses, leading to 50%-plus potential downside.