For traders and investors looking for an interesting focus as a growth theme for the second half of 2018, one might identify some important promise around the idea of innovation in sports betting. In case you have been living under a rock, the state of New Jersey won a US Supreme Court case recently, as a majority of justices declared that the federal ban on sports wagering was unconstitutional.
That ruling could very well reshape the landscape in the sports betting space, opening up a lot of new growth potential. And a few stocks may be set up to take advantage of the opportunity.
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 several similar stocks in the space, it may be a bounce trade in the making.
But the concept of another 900% rally here is probably a bit unlikely looking ahead.
Epazz Inc (OTCMKTS:EPAZ) is an extremely interesting new player on the chess board in the sports betting space.
Given the stock’s very small float (under 20 million shares), very cheap price per share (just above a nickel), and news that it just went after official patent protection for a blockchain-based Fantasy Sports Gambling Solution, this is a very different ball-game from SGMS in that it’s not hard at all to imagine a potential 10x advance here if the stars line up right.
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 30k feet, 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.
Shares of EPAZ have been bouncing sideways in a range that represents something that could well be a healthy consolidation following the stock’s strong advance over the past year. After all, the stock is up almost 200% since mid-December.
For traders looking to time a fresh leg higher, we would closely monitor the action around the stock’s 200-day simple moving average. A break above that level – around $0.076/share – could trigger a FOMO sprint higher that could feed on itself and quickly eat up this small trading float.
Boyd Gaming Corporation (NYSE:BYD), together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest and South. As of December 31, 2017, the company owned and operated 24 gaming entertainment properties offering a total of 1,358,856 square feet of casino space, 30,267 slot machines, 632 table games, and 9,372 hotel rooms located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi.
It also owns and operates a travel agency in Hawaii. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
BYD shares have been red hot over the past 2 years, but that momentum has been contained in a wide-swinging trading range so far in 2018. The new legislation could help to spur a follow-on leg higher, but that action will likely depend on how the company manages to integrate some new balance sheet issues as it turns to new note issuance to fund operations.
From a strictly technical standpoint, the stock remains in an undisputed uptrend, trading well above a rising 200-day simple moving average – which hasn’t even been tested since late 2016 in direct terms. The key here for BYD bulls will be a test of the $40 level, which holds the potential to spring the action for a new set of higher highs.