This company is not only growing rapidly, but is in an industry that traditionally withstands economic downturns.
The post Buy this ASX share that’s 80% cheaper than a year ago: expert appeared first on The Motley Fool Australia. –
Investors are urged to ignore an 81% tumble in the share price for an up-and-coming Australian company that’s headed for a bright future.
Bluebet Holdings Ltd (ASX: BBT) has seen its stock price tumble from $2.86 on 25 August 2021, to now just 54 cents, less than a year later.
However, Red Leaf Securities chief executive John Athanasiou recommends punters buy the stock while it’s going for cheap.
“This sports betting technology company had cash and cash equivalents of about $51 million at the end of the third quarter of fiscal year 2022,” he told The Bull.
Massive growing market in the USA
The betting provider is a participant in the land grab in the lucrative US market, as individual states move to legalise sports gambling.
“Bluebet is expanding in the lucrative US market,” said Athanasiou.
“It recently signed a 10-year market access agreement to operate in Indiana.”
Another bonus is that Bluebet plays in an industry that can endure an economic downturn, should rising interest rates start to impact Australian and American consumers.
“Gambling stocks traditionally do well during challenging times, and we believe this will be the case with Bluebet.”
Bluebet’s ‘longer-term potential is significant’
Athanasiou is not the only one keen on Bluebet.
According to CMC Markets, both Morgans and Ord Minnett rate the stock as a strong buy.
Morgans senior analyst Alexander Mees explained last month how much his team is looking forward to Bluebet’s annual report.
“The longer-term potential is significant,” he said.
“Bluebet’s Australian business is forecast to achieve strong growth in turnover in FY22 (48%) as it increases marketing costs to drive customer acquisition.”
Bluebet is due to report its numbers on 30 August.
The company was founded by bookmaker Michael Sullivan, who is now executive chair and holds more than 40% of the shares.
He was formerly the chief executive of Sportingbet, which he grew into a multi-billion dollar business.
The post Buy this ASX share that’s 80% cheaper than a year ago: expert appeared first on The Motley Fool Australia.
Before you consider Bluebet Holdings Ltd, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bluebet Holdings Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of July 7 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.