PBH

5.32%

49.5¢ pointsbet holdings limited

if draftking gobble up pointsbet its share market going to...

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yourhero111

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239

18/06/23

11:50

Post #: 68344814
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Originally posted by Aisunbeth: ↑

I have done some detailed reading and work on Pointsbet, the US sports betting industry and the various competing bidding parties since the release of the PBH's Friday ASX announcement. The bid from DraftKings strike as a typical starting point of a bidding war, referring to the strategic position that PBH's US business is in. Typically in such an industry where the top three that has cemented its position already will turn their attention for further market share by grabbing the #4, #5, #6, #7 etc players in the industry as the top three compete with themselves to become the dominant. This is the lowest hanging fruit and due to the valuation discrepancies ascribed to the top players vs. bottom feeders, it becomes even more sensible due to this valuation arbitrage.

I have done an analysis on what I think PBH is really worth per share, and put at the bottom three scenarios where further competing bids may come in. Obviously they may never eventuate but two things worth of note is that firstly at the current price of $1.365 PBH has almost no downside risk, at that price you are effectively buying a very low cost call option on the stock. Secondly, you can see the top players in the industry has a tremendously large market caps relative to what we are playing with on Pointsbet. An extra US$50m really doesn't mean a lot to the big players considering the strategic market share win they can achieve. At Fanatics and DraftKing's latest market capitalisations, the entire PBH bid at US$195m represents circa 1% of their total market cap. Raising it by another US$100m or so would still but it at 1-2% of their respective market caps. We haven't heard from Entain/BetMGM or Flutter yet and it doesn't seem they are shy from making acquisitions noting Entain's acquisition of STS at over A$1bn.

Overall I feel PBH is well underwritten at the current $1.365 price and a price north of $1.74 would be fair.

This is getting interesting.

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if draftking gobble up pointsbet its share market going to bigger than fandual. I m sure fandual wouldnt want to see that happen.

PBH Price at posting: $1.37 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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(20min delay)
Last 49.5¢		Change 0.025(5.32%)		Mkt cap ! $164.0M

Open	High	Low	Value	Volume
47.5¢	49.5¢	47.5¢	$207.2K	424.2K

Buyers (Bids)

No.	Vol.	Price($)
1	4084	48.5¢

Sellers (Offers)

Price($)	Vol.	No.
49.5¢	40415	3

View Market Depth

No.	Vol.	Price($)
1	4084	0.485
3	11134	0.480
2	31505	0.475
9	108530	0.470
5	125208	0.465

Price($)	Vol.	No.
0.495	40415	3
0.500	51546	7
0.505	110000	2
0.510	1000	2
0.515	25305	2

Last trade - 16.10pm 16/08/2024 (20 minute delay)

PBH (ASX) Chart

if draftking gobble up pointsbet its share market going to...

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if draftking gobble up pointsbet its share market going to...

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Sellers (Offers)

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