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Does MM like Betmakers Technology (BET)?

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    Does MM like Betmakers Technology (BET)?

    Thanks a lot for your good advice. Keep up with your good work. Thanks for taking my question! The share price of BET has dropped from the year high of $1.42 to the current price of $0.445 (close on 12/Aug) In the last Quarterly report, BET reported cash receipts came to $26.2 million last quarter, marking a 194% improvement; and its unaudited financial year 2022 revenue has soared to $91.6 million up from around $19.5 million in financial year 2021. BET also announced recently Share Buyback for up to 10% of outstanding shares.  I think that the market has bottomed out and is this the right time to start nibbling at BET? Thanks!!!

    Answer

    Hi Peter,

    For those not familiar,  this $380mn software development business designs and develops odds comparison technology, betting platforms and other analytics that underpin online betting. Like other stocks exposed to online betting such as PointsBet (PBH) in Australia and DraftKings (DKNG US) in the US, it’s been tough going as the market shuns loss making growth orientated companies.

    You are correct insofar as revenue has been growing strongly and they are now forecast to make a profit in FY23 – only a small one ($1.7m) but a good sign nonetheless having lost $17m in FY21 & likely to be another $14.5m loss in FY22.  They report results on the 25th August so that will give us more insight – my inclination would be to wait till then.

    Applying technicals to quantify the risk / reward, the below would be our approach if were trading the stock.

    • we could buy around today ~42c with stops below 37c.
    • Alternatively buy some strength through 45c and apply stops below last weeks low.
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    Betmakers Technology Group (BET)
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