With the Supreme Court’s recent May ruling – the state of New Jersey won its US Supreme Court case, as a majority of justices declared that the federal ban on sports wagering was unconstitutional – the potential for stocks well-aligned with the theme of sports betting should be on the short list as candidates for strong action during the second half of 2018.
Here, we will survey a few interesting ways to potentially profit from this theme.
Las Vegas Sands Corp. (NYSE:LVS), together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. It owns and operates The Venetian Macao Resort Hotel, the Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China; and iconic Marina Bay Sands in Singapore.
The company also owns and operates The Venetian Resort Hotel Casino and The Palazzo Resort Hotel Casino on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. Its integrated resorts include accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.
LVS has been capitalizing on the shift in laws around sports betting, and has a diversified global presence. But shares just got smashed on Monday following poor Macau gambling data out of China.
At this point, traders will be looking for a possible bounce trade off support at the stock’s 200-day simple moving average, which crosses the chart around the $71.50-71.75/share area. The stock also has very strong support just under $70. So, while we are seeing a lot of weakness, there is an obvious explanation and a lot of support nearby. However, after moving from $1.50/share to over $80/share over the past decade, one has to wonder if there may be better spots to look for huge price-per-share growth.
Epazz Inc (OTCMKTS:EPAZ) is an extremely interesting new player on the chess board in the sports betting space, and may fit exactly that bill (a potentially ripe spot to look for huge price-per-share growth). In this case, we are looking at a blockchain solution for fantasy sports gambling that could be a game changer.
One of the most interesting reasons to keep this stock on the radar right now is the combination of a small trading float (under 20M shares), the fact that this ticker is trading at just about a nickel per share right with miles of blue sky above, and news that the company just filed a provisional patent for a blockchain Fantasy Sport Gambling Solution.
The big problem with the recent Supreme Court decision mentioned above is that we suddenly have fifty separate state laws on fantasy sports betting. We know most folks won’t have any idea what they can and can’t do. The company is looking to solve that to enable people to participate in fantasy sports gambling within the law.
From a bird’s eye view, the company specializes in enterprise cryptocurrency blockchain mobile apps and cloud business process software with over 500 repeat customers. New Bitcoin Mobile app is a financial technology company that offers a unique Bitcoin and Ethereum payment mobile app software, allowing consumers to acquire Bitcoin at the point-of-sale. The consumer can then use the cryptocurrency or digital currency to make a purchase at the store with ease.
Epazz technology makes it easy to convert legacy systems into cloud business process software, for which the company then charges an annual subscription fee. Epazz has acquired eleven software companies that have converted or are in the process of converting their legacy software products to cloud software using Epazz’s technology. Epazz then markets the new cloud-based solutions to new and existing customers.
The action in the stock has been constructive over the past year, with shares working through what appears to be a healthy consolidation amid a new bullish trend that got started late in 2017. The stock is up about 250-300% since that time.
If shares move back above the $0.08/share level, then they will be trading back solidly above the stock’s key major moving averages, perhaps signaling the onset of a potential next leg higher in the trend.
Scientific Games Corp (NASDAQ:SGMS) develops technology-based products and services, and related content for the gaming, lottery, and interactive gaming industries worldwide. The company’s Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals (VLTs), conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games.
It also leases VLTs and electronic table games, game themes, or other licensing arrangements; and provides installation and support services for casino management systems, such as ongoing hardware maintenance and software upgrade services.
The company’s Lottery segment designs, prints, and sells instant lottery games, as well as offers instant game-related services comprising game design, sales and marketing support, and inventory management; and provides lottery systems, including hardware, software, and instant game validation systems. It is also involved in supplying player loyalty programs, as well as providing merchandising services and interactive marketing campaigns; and sublicensing brands for lottery products, as well as providing lottery-related promotional products. In addition, this segment provides software, hardware, and related services for lottery operations, including draw systems, instant ticket validation systems, and sports wagering and keno systems; and lottery systems software maintenance and support services.
The company’s Interactive segment operates social casino-style, slot-based, and bingo-based games through Facebook, iOS, Android, and various other desktop and mobile platforms; and provides content through remote game server technology, to licensed online casino operators on desktop and mobile platforms, as well as play-for-fun and play-for-free white-label gaming for land-based casinos.
SGMS shares just dumped down to test major moving average support just under the psych $50 level. The stock is down almost 20% after ripping higher over the past few years to pile on gains from under the $5/share level. As with LVS, it may be a bounce trade in the making. But the concept of 10X movement here is likely a ship that sailed in 2016.