Why Mogul, page-3

Why I bought ESH.ASX

One part is diversification as ASX has really limited technology stocks even though I own a substantial/majority part of my holding in ETFs but I always like having some direct stuff. However I had personally seen the eSports scene and grow to what it is today, I started thinking what could I use what I and millions (if not billions) of people would like. I thought about buying a well-established game developer such as Blizzard who makes great games but one it isn’t listed on the ASX but also I read somewhere that businesses that facilitate something rather than chasing the next new/big thing is better. Don’t get me wrong Blizzard has made some amazing games and I have played them all until recently (never played Overwatch, HoTS – getting older now lol). However Blizzard surely did well of World of Warcraft and still does even though it isn’t at its peak player count.

The issue with the developer is that a lot of money is spent on developing the games and if the game flops or not well received it can have real issues with the share price.Further not every game can be and A+ and make millions and as quickly as you release a game someone is going to try and replicate or beat what that game was.

So I saw a risk with the developers so I then went in search of other businesses that don’t create the game but rather facilitate them.Think of Steam, Apple App Store, Netflix, Youtube, Facebook, Amazon, Uber even if you want an ASX listed company would be REA (declaration I also own) none of them really make anything but they all facilitate getting someone’s product, entertainment or service.

This is where ESH/Mogul really got me interested, here is a platform that allows users to play their favourite game and win prizes for nothing or can be done through paid entrance.Mogul doesn’t need to create the newest or biggest game and this really showed how quickly the system can be developed when Apex Legends was released and millions of people were playing it within hours of its release which was competing with Fortnite – Both these games have tournaments but it took Mogul only a couple of days to have Apex Legends apart of its offering.However I am sure the decision was made it, it took Mogul within a couple of hours to have Apex Legends activated. A further part was that it is fully automated; this removes a lot of costs/head count as the system will do the leg work.The payments made to players are instant once the tournament is finished (except in large prizes).

I could also see the technology spend is rather small as they are not actually generating any games but rather facilitating people to play their favourite games – technology spend is usually a huge cost with tech companies. The biggest cost or hurdle I could see for ESH/Mogul was getting player numbers (reaching that critical point) and this will come at a financial cost but once reached that critical mass then everything becomes a lot easier e.g. word of mouth, brand awareness, referring their friends and from their idols either eSports teams and/or Streamers.

So here I was looking at a platform that was live (hadn’t been fully tested at this point) and I can see little overheads, little technology spend, something that can work with the latest games in an instant, free for people to join/play/win and IF it became a main stream company then it would be hard to stop.Hence why I bought in