Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Red Leaf Securities chief executive John Athanasiou reveals how he's in favour of picking up bargains in one particular sector.

Investment style

The Motley Fool: How would you describe your services to a potential client?

John Athanasiou: My name's John Athanasiou from Red Leaf Securities. I'm the CEO of the organisation. We're an investment firm. 

Now, we don't have a fund. We manage, we give advice on our clients' stock — stock-specific advice. We specialise in finding undervalued Australian-listed companies that we believe will outperform the market. 

Typically, we find these opportunities in the small-cap space. They're very under-researched, which provides you the opportunity to generate alpha returns.

MF: The past 12 months haven't been pleasant for small caps. How do you see the market moving from here?

JA: I'm actually relatively bullish. I think the worst of the inflation scare is behind us. 

Not many people have realised all the positive things that'll come out now in relation to inflation easing. Recently we saw inflation easing and China's reopening their economy, which is quite positive for equities. In terms of all the negative news, i.e. high inflation, I think that's starting to come under control. 

We're very bullish in the technology sector. I think a lot of people haven't realised that the S&P/ASX All Technology Index (ASX: XTX) is up circa 9.87% for the year, while the S&P/ASX 200 Index (ASX: XJO) is up 4.5%. So we're very bullish on equities, particularly technology stocks that were severely beaten last year.

Hottest ASX shares

MF: What are the two best stock buys right now?

JA: My first pick is BlueBet Holdings Ltd (ASX: BBT). They've got a cash position of circa $30 million, [with] the market cap at $60 million. 

Now the reason why we like it is that it's severely undervalued in our opinion. It's been unfairly tarnished with the other tech stocks from last year. 

Management has bought stock, so they're putting their money where their mouth is. And we're really excited about their opportunities in America. In America, they're growing in a very conservative capital-like fashion. What I mean by that is they build relationships with existing bricks-and-mortar operators and casino gambling operations over there, and they supply their technology. 

Because in the States, each state's different in terms of their gambling laws. That's a better way of doing it as opposed to its competitors that are just spending cash hand-over-fist to buy customers, essentially. 

So we're very bullish on BlueBet. We think that's probably a very solid recovery story going forward.

My second pick, it's outside of the tech space, is Northern Star Resources Ltd (ASX: NST). 

This gold producer announced an interim dividend payment despite their EBITDA declining by 12% to $633 million. It declined essentially because of inflationary pressures like everyone else is facing. Now we see inflation easing, so those cost pressures will decrease as a result. 

On top of that, gold actually performs well when things deflate, people kind of forget that. Because there's an opportunity cost of owning gold. If you own gold, you're giving up the opportunity to earn interest or get paid a dividend. 

Now that inflation's easing, we see central banks around the world will start calming down with their cash rate rises. We see [it's] very positive for gold going forward.

MF: The Northern Star share price dipped 17.4% in February. Was that just the gold price cooling off?

JA: It was just the gold price, just natural fluctuations in the market. People got a little bit ahead of themselves. There were scares of inflation not coming down as quickly as anticipated… There was a bit of fluctuation in gold prices.

The post I'm bullish on this sector and 2 ASX shares right now: expert appeared first on The Motley Fool Australia.

It might have been a green day for the S&P/ASX 200 Index (ASX: XJO), but not all shares were showered with praise.

The benchmark caught its breath today after being rattled by hawkish commentary on interest rates yesterday. Despite the Tuesday wobble, the market is perched 8.4% above its 2022 endpoint — already outdoing the historical average annual return of 8%.

Still, there are high-quality ASX shares that toppled to their lowest point in a year today. Here's a look at three notable companies that are in the doldrums.

Three solid ASX shares taking a towelling

Elders Ltd (ASX: ELD)

Shares in the Australian agribusiness sank 5.9% to $8.83 on Wednesday without any news from the company. The swift unexplained drop prompted the ASX to issue a price query to Elders, to which it provided a response this afternoon.

While there was no price-sensitive information released, Elders noted that it had conducted multiple investor briefings with institutional investors yesterday. A collection of sector-wide factors were mentioned in these briefings, including:

• Declining livestock prices from historic highs
• Unseasonably wet conditions affecting eastern Australia
• Softer real estate activity amid rising interest rates
• Strong winter cropping outlook

One would need to trace back to early 2020 to find Elders shares trading this low on the ASX.

Bluebet Holdings Ltd (ASX: BBT)

Sportbetting company BlueBet managed to finish the day 1.6% higher at 32.5 cents apiece, but not before setting a new 52-week low. Shares in the microcap reached a low of 31 cents, its lowest on record since hitting the ASX.

There wasn't any clear negative news to explain a new 52-week low from BlueBet today.

Last month, shareholders were supplied with the company's results for the second quarter of FY23. While active customers were up by 32.3% to 59,632 compared to the prior corresponding period, more than $10 million worth of cash was consumed during the quarter.

Sonic Healthcare Limited (ASX: SHL)

Shares in ASX healthcare giant Sonic took a 3% hit on Wednesday, nudging down to $29.21. The last time the company reached a share price this low was around mid-2020 as it was beginning to catch the COVID-19 tailwind.

Earlier in the week, analysts at Goldman Sachs named Sonic as one ASX share it suspects will surprise to the downside this ASX reporting season. According to Goldman analyst Chris Cooper, investors are underestimating the impact of inflation on the business.

The Sonic Healthcare share price is down 24.6% over the past year.

The post Bargain alert? 3 high-quality ASX shares that just hit 52-week lows appeared first on The Motley Fool Australia.

1) So much for the extreme volatility some market watchers expected following the United States inflation figures, which came in slightly lower than expected.

The S&P 500 Index (SP: .INX) rose a modest 0.73% whilst the Nasdaq Composite (NASDAQ: .IXIC) index gained just over 1%. The ASX 200 is making headway in afternoon trade on Wednesday, with Block (ASX: SQ2) shares the biggest gainer, up 8.3%, but still down 41% over the past 12 months. 

The softer-than-expected US inflation print gives the green light to US Federal Reserve chair Jerome Powell to raise interest rates by 50 basis points overnight Wednesday.

The main game in town now for stock market watchers is predicting the terminal interest rate and when the Fed will start cutting interest rates.

Quoted on Bloomberg, Jason Katz, managing director and private wealth adviser at UBS, expects interest rates will stay higher for longer.

If they cut rates in the latter part of next year, that's going to be because they broke things along the way and things are ugly. So it's our view that the terminal rate lands anywhere between 5%-5.25% and remains there for the full calendar year.

Such an outcome would likely continue to put pressure on global stock markets, certainly for the first half of next year. Although the ASX 200 has had a good year, certainly when compared to the double-digit losses widely seen on Wall Street, you'd imagine there would be some comeuppance should US markets continue to fall.

2) Of course, not everyone shares the same views as Jason Katz – the divergence of opinion and thoughts is what makes a market.

"The coming year for investing may turn out to be better than many expect for stocks even though a recession appears likely," pros at Natixis Investment Management said Wednesday on MarketWatch.

"I'm bullish because everybody is bearish," said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Management Solutions. "The downside is already reflected in the market."

Simple is often best, especially given how hard it is to predict what might happen to the economy, to the consumer, to interest rates, to unemployment, to inflation, and more.

3) Writing in their November monthly update, the Surrey Australian Equities Fund said they "are positive on the outlook for Australian equities over the medium term".

Our view remains that inflation has been materially impacted by supply chain issues and as these normalise and higher interest rates take effect, inflation could ease and with it the recent sharpness of interest rate increases… Should rates increases start to slow and the US 10-year bond yield settles, we are positive on equity valuations.

The fund also notes, when it comes to small-cap stocks, positive recoveries often follow down years. 

In 2022, huge gains in resources stocks have helped offset massive losses in growth stocks, such that the S&P/ASX Small Ordinaries Index (ASX: XSO) is down "only" 19% so far this year. Adopting the simple technique of being bullish because everyone else is bearish, I'd guess a basket of beaten-down small-cap growth stocks will outperform in 2023.

I own more than my fair share of small-cap "dogs of 2022", although thankfully I haven't owned them all year, somewhat limiting my losses. 

Moving into 2023, I'm holding out recovery hopes for these dogs, with their one-year share price performance noted. In alphabetical order…

BlueBet Holdings Ltd (ASX: BBT) – down 73%

Field Solutions Holdings Ltd (ASX: FSG) – down 51%

Marley Spoon (ASX: MMM) – down 81%

Plenti Group Ltd (ASX: PLT) – down 64% 

RPM Automotive Group Ltd (ASX: RPM) – down 44%

Swoop Holdings Ltd (ASX: SWP) – down 77%

Hydration Pharmaceuticals Co Ltd (ASX: HPC) – down 72%

Touch Ventures Ltd (ASX: TVL) – down 64%

It's a motley group of companies, with little in common, apart from the devastating falls experienced by shareholders over the past 12 months.

That said, apart from Touch Ventures, which is an investment vehicle trading at a significant discount to its net asset value, they are all growing quickly, mostly have cash or little to no debt, and are either profitable or trade around break-even.

Here's hoping for a happier 2023 and beyond for these dogs, and to the micro-cap (and fun but risky, so please don't try this at home) portion of my portfolio. I look forward to reporting back on progress come this time next year. 

The post "Bullish because everybody is bearish" – here are 8 dogs of 2022 I'm backing for the win in 2023  appeared first on The Motley Fool Australia.

1) Despite a choppy session on Wall Street on Friday, the S&P/ASX 200 Index (ASX: XJO) rose in lunchtime trading on Monday in yet another show of resilience for the local stock market.

Once again, as has been the case for most of the year, materials and energy stocks are getting the job done today, with the Fortescue Metals Group (ASX: FMG) share price leading the way higher. It's up 7.67% on the day so far after the iron ore price posted a hefty one-month gain. 

The ASX 200 index has fallen just 3.3% so far in 2022, an outstanding return given the Reserve Bank of Australia (RBA) has hiked the cash rate from just 0.1% in April to its current level of 2.85%. 

By contrast, although they've enjoyed a nice bounce since the beginning of October, US markets have endured a painful year, the S&P 500 Index down 15% and the Nasdaq Composite plunging almost 28%.

2) Local eyes are on the RBA's final meeting of the year, with consensus expectations the central bank will tomorrow raise the cash rate by another 25 basis points as it continues the fight against inflation.

Financial markets are pricing a peak in the cash rate of about 3.6% early in the second half of 2023, although Bank of America expects the RBA to follow up tomorrow's rise with four consecutive 25 basis point hikes, bringing the terminal rate to 4.1%.

According to the AFR, Bank of America thinks "the RBA is underestimating wage pressures and that its slow hiking pace means more work will need to be done to rein in inflation."

Whichever way you look at it, we're closer to the end of the heavy lifting on interest rates than the start. That's good news for equity markets.

The bad news for equity markets is higher interest rates will put the brakes on economic growth. According to Rate City, monthly repayments on a $500,000 mortgage have increased by $834 since May. 

That's a LOT less money that can be spent on discretionary items such as clothing, gadgets, and couches. It explains why the share price of JB Hi-Fi (ASX: JBH) trades on a fully franked dividend yield of 7% and a price-to-earnings (PE) multiple of just nine times profits. 

3) Although inflation may have peaked, a mild recession is the base case scenario for the US economy. It's going to be hard for many companies to grow their profits, with many going into reverse as profit margins also come under pressure. 

It's why investing into the teeth of a bear market is so hard. Companies like JB Hi-Fi might look cheap today, but less so based on next year's earnings. As predicting the near-term future is virtually impossible, investing in individual companies today means taking a leap of faith.

Buying quality companies with strong balance sheets and minimal debt – and JB Hi-Fi certainly fits that bill – is one way to mitigate the risk. But will that stop you bailing out if/when: a) a bout of stock market volatility hits and b) a subdued trading statement smacks the share price lower?

Many investors fail to enjoy the attractive long-term returns on offer from investing in the stock market because they interrupt the effects of compounding. They may buy a stock with the intention of holding it for five years or longer, but there's a heck of a lot that can happen to a company and its share price over that time period, likely including a peak-to-trough fall of around 50%.

Investing regularly into a few low-cost index-tracking exchange-traded funds (ETFs) is a great option for most stock market investors. It takes stock picking out of the equation, and volatility is greatly reduced. 

My favoured option is the Vanguard MSCI Index International Shares ETF (ASX: VGS). If you want to throw in a local flavour, consider adding the Vanguard Australian Shares Index ETF (ASX: VAS). You'll get exposure to the big miners, the big banks, and the big supermarkets.

4) If you are a stock junkie like me, and you have ambitions of outperforming the market, investing in individual companies can be interesting, fun, and rewarding.

That said, it can also be very challenging, as it has been for many investors over the past 15-odd months. 

The very best stock pickers only get it right six times out of ten, because when they do pick a big winner, the upside is unlimited. Imagine putting $5,000 into one stock and 10 years later, look back and see it has appreciated 2000%, turning that one investment into over $100,000. 

Fun, right? 

Not so much fun are the inevitable losers, the four out of ten you'll get wrong. Although a few of the stocks I highlighted a month ago have had good recent runs, I'm still in the hole on a number of my small and microcap holdings, including Plenti Group (ASX: PLT) shares and Bluebet (ASX: BBT) shares.

On those latter two, hopefully, it's a case of waiting for the market to appreciate their growth prospects and modest valuations. Although it could also be a case of me being wrong and their share prices never recovering, or worse, declining further, ultimately potentially leaving me sitting on losses of around 80%. 

5) It's why portfolio sizing is key. I try not to chase my losers, especially ones whose share price is declining at the same time as the growth of the underlying business is slowing. That's the case with Plenti and Bluebet, and why I'm not adding to my holdings despite the share price weakness. 

It took me many years to realise I'm no investing genius like Warren Buffett, someone who takes huge high conviction bets on a very small number of companies. For mere mortals, hedge your bets by spreading your bets across 20 or 30 different stocks. The winners will inevitably rise to the top, the losers slowly disappearing into tiny, inconsequential holdings.  

I also realise I'm no Warren Buffett when it comes to investing returns. He's compounded at an average annual return of 20% for 56 years. If you can do between 8% and 12% for 20 or 30 years – including regularly adding money to the market over that period – you'll do very well as an investor.

The post It took me years to realise I'm no investing genius like Warren Buffett appeared first on The Motley Fool Australia.

No-one rings a bell at the top of a bull market or at the bottom of a bear market.

In hindsight, any of us (like me), who were holding onto fast-growing yet loss-making growth stocks as inflation started spiking upwards, wished they could turn back the clock and sell at the (now) obviously inflated valuations.

Fast forward to now, where the S&P/ASX 200 Index (ASX: XJO) is down 10% year to date and the S&P/ASX Small Ordinaries Index (ASX: XSO) has lost 25% over the same period. In the US, it's worse, with the Nasdaq off 33% so far this year.

At the individual stock level, some of the falls have been absolutely brutal so far in 2022…

City Chic Collective Ltd (ASX: CCX) – down 79%

EML Payments Ltd (ASX:EML) – down 79%

Kogan.com Ltd (ASX:KGN) – down 64%

Megaport Ltd (ASX:MP1) – down 58%

If I were a betting man, I'd wager, over the next 12-24 months, small companies will out-perform the ASX 200 index. 

And although the bell isn't ringing for the bottom of this bear market, I think now will prove a good time to steadily put money to work in stocks that I think have asymmetric upside potential. 

An asymmetric bet, trade, or investment is when the potential upside of a position is much greater than its potential downside.

Rather than investing now in coal producers Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC), up 314% and 208% respectively so far this year, I'd far rather be betting on some ASX micro-cap stocks who, from ultra-depressed levels, have the potential to rise three to five times in value in the coming years. 

Putting my money where my mouth is

I'm putting my money where my mouth is, investing in a portfolio of companies that generally have little to no debt, are growing quickly, are either on the cusp of profitability or are indeed profitable, yet their share prices have fallen up to 70% in this brutal sell-off.

I'm not stupid enough or confident enough to say some won't fall in a screaming heap. These are often very small companies operating in very competitive markets. A diversified portfolio is essential – 15 to 30 stocks – as is lashings of patience and the ability to withstand short to medium term volatility.

It's worth reminding readers that a company that has already seen its share price fall 70% can easily see it halve again, especially in a market that's incredibly nervous, and one where liquidity for many micro-cap stocks has virtually disappeared.

But that's the stock picking game, right? Otherwise, we just stick with low-cost index-tracking Exchange Traded Funds (ETF), like the Vanguard Australian Shares Index ETF (ASX: VAS) and/or the Vanguard MSCI Index International Shares ETF (ASX: VGS).

In return for enduring the volatility and the uncertainty, you have the opportunity to earn out-sized returns by picking your own stocks. 

Yet heed this warning from legendary investor Charlie Munger from 2009, also a period of high uncertainty and volatility…

"… if you're not willing to react with equanimity to a market decline of 50% two or three times a century you're not fit to be a common shareholder and you deserve the mediocre result you're going to get compared to the people who do have the temperament…"

Two ASX stocks with asymmetric upside potential 

The Plenti Group Ltd (ASX: PLT) share price has slumped 64% so far this year as the online auto and personal lending business has been buffeted by a re-rating of tech stocks, higher interest rates and the threat of increasing bad debts in a slowing economy as those interest rates start to bite.

The risks are very real. Yet, the company is growing like gangbusters as it and other "challenger" lenders take market share from the less nimble big four banks. Its loan portfolio at 30th June 2022 was $1.44 billion, up 90% from the prior year, with ambitions to grow it to $5 billion in 2025.

The Bluebet Holdings Ltd (ASX: BBT) share price is down 70% so far this year as the online bookmaker has largely been a victim of the vicious sell-off in tech stocks. 

Bluebet is growing quickly, has plenty of cash and no debt, and cash from operations is running around breakeven, despite its up-front investment in marketing and in the nascent yet lucrative US market.

With a market cap of just $86 million, and its cash balance providing downside protection. For me, Bluebet is an asymmetric bet on its 'Capital Lite' US strategy, starting in four states. Macquarie expects online sports betting to be available to 96% of the US population by 2025.

In a diversified portfolio, with plenty of large-cap ballast and a healthy cash balance, I hold modestly sized positions in both Plenti and Bluebet, amongst other small and microcap stocks I think offer asymmetric outcomes.

The post Two ASX microcap stocks with asymmetric upside potential in today's market appeared first on The Motley Fool Australia.

Shares of BlueBet Holdings Ltd (ASX: BBT) have slipped into the red today following the release of its FY22 results.

At the time of writing, BlueBet is trading more than 7.5% into the red at 43 cents apiece.

BlueBet shares dip as profit slumps in FY22

Key takeaways from the company's results include:

• Turnover of $511 million, up 48.5% from FY21's result
• Wagering revenue of $54.6 million, a gain of more than 53% from the year prior
• Gross profit growth of nearly 48% for the 12 months
• EBITDA loss of $5.5 million, down from a $4.7 million profit a year earlier
• Net loss after tax of $6.1 million, down from $3 million profit in FY21
• Net cash from operations down 84.7% year on year to $1.5 million

What else happened for BlueBet in FY22

After listing in July 2021, BlueBet saw strong results that outpaced forecast in its prospectus.

It maintained an "attractive 2.7x ratio of annual customer value to the cost of a first time depositor" by year's end as well.

The company saw its net win margin grow by 10.7% year on year, and secured market access in 4 US states.

Furthermore, 3 additional platforms were launched in the Australian business to assist with the company's US technology operations.

Despite incurring a loss after tax of $6.1 million, BlueBet notes that "[initial public offering] IPO proceeds largely intact due to cash generation from Australian business".

Management commentary

Speaking on the announcement, BlueBet CEO, Bill Richmond said:

I am very proud of the progress we have made in our first year as a listed company, having achieved a number of major strategic milestones, including touching down in the US, developing a leading technology platform and continuing to grow our market share in Australia.

Our IPO provided us with the financial firepower to invest for growth. With our US B2C brand ClutchBet now live in the US, having taken our first bets in Iowa in this month, we are committed to executing the first stage of our differentiated 'Capital Lite' US strategy. The strength of our technology and our team is now on display as we move towards our B2B Sportsbook-as-a-Solution model in FY23.

BlueBet share price snapshot

In the past 12 months, the BlueBet share price is down nearly 83% as well as 70% this year to date. It trades in the red across all time frames.

The post BlueBet shares slide 7% despite solid revenue, margin growth in FY22 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.

The BlueBet Holdings Ltd (ASX: BBT) share price is flat this afternoon after posting strong gains early in the session.

BlueBet shares caught a bid at the open and soared 8% following the release of the company's quarterly results for the period ended 30 June 2022.

However, the BlueBet share price has since retreated and is now back to where it ended Thursday's session — at 59.5 cents.

BlueBet revenue, net win gains year on year

Key takeouts from the quarter for the sports betting company include:

• Revenue up 31.3% to $126.7 million, driven by strong customer and Betcount growth
• Net win up 27.3% to $12.8 million
• Net win margin 10.1% in Q4 and 10.7% for FY22
• Total 53,328 active customers at the end of June, up 64.2% on the prior corresponding period (PCP)
• Rolling 12-month first-time depositors (FTD) up 60.8% on PCP in Q4
• Cost per FTD (CFTD) of $386 being 2.7x annual customer value
• Corporate cash balance at the end June of $43.7 million

What else happened this quarter for BlueBet?

The company secured its fourth US market access agreement, partnering with Caesars Entertainment Inc on a 10-year term.

It will operate a new business-to-consumer (B2C) online sportsbook in Indiana under the recently announced ClutchBet brand.

This marks the first stage of BlueBet's two-stage "capital lite" strategy for US entry — that being to launch ClutchBet and "demonstrate the capability of its technology and team to run profitable sportsbooks in the US".

The company also left the quarter with 53,328 active customers, representing a 64% increase on the PCP.

Within this group, average annual customer value is above $1,000, "providing a 2.7x return on our marketing investment to acquire these customers," BlueBet says.

What's next for BlueBet?

With the first stage of its capital light strategy nearing completion, it can now focus on looking ahead. It said:

While there remains significant opportunity for B2C expansion into other target U.S. states, BlueBet's focus and capital will now be directed towards executing in each of the four initial states, alongside seeking partners nationwide for the launch of its white-labelled Sportsbook-asa-Solution B2B offer, the second stage of its US entry strategy.

BlueBet is ready to go-live in Iowa under the ClutchBet brand pending final approvals. With platform testing successfully completed and final certification from GLI to shortly follow, the final step before receiving licence approval from the Iowa regulator is to complete geo-location testing. Once complete, the company expects to have its license approved in the coming weeks.

In the last 12 months, the BlueBet share price is down more than 73%. It has also fallen around 60% this year to date.

The post BlueBet share price leaps 8% before flatlining following robust quarter appeared first on The Motley Fool Australia.

After a brutal start to this Friday's trading session, the All Ordinaries Index (ASX: XAO) has recovered somewhat. At the time of writing, the All Ords is still down by 0.72% at around 6,800 points after going as low as 6,733 points this morning.

So it goes without saying that there are many ASX All Ords shares tumbling in value today as we head into the weekend. Let's look at three notable examples.

3 ASX All Ords shares falling on Friday

Jumbo Interactive Ltd (ASX: JIN)

The only jumbo thing about this ASX share today is the size of its fall. The gaming company has had a shocker this Friday, falling by 14.85% at the time of writing to $12.33 a share. That's also a new 52-week low for the company.

These moves seem to be a response to the release of the company's preliminary full-year earnings this morning. As we covered earlier today, Jumbo disappointed investors with a miss on revenues, earnings and net profits. Ouch.

Bluebet Holdings Ltd (ASX: BBT)

Another All Ords gaming share, Bluebet, is also having a clanger. At present, the Bluebet share price has lost a meaty 10.83% and is back to 54 cents a share. The company went as low as 51 cents this morning, which fortunately is still a fair way from its 52-week low of 37 cents.

There's been no news out of Bluebet today, or indeed this week. So perhaps this fall is a side effect of the tumble Jumbo shares have taken, given both companies are in the gaming space.

Starpharma Holdings Limited (ASX: SPL)

Starpharma is not a gaming company but a healthcare share, as its name implies. But that hasn't saved it from a displeasing fall today. The Starpharma share price is currently down by 8.84% at 67 cents a share after dipping to 66 cents earlier today. That's not too far from this company's 52-week low of 62 cents.

There's been no news our of this company either. So it's not too obvious what's going on here. Starpharma shares have been incredibly volatile over the past week though. The company rose more than 8% yesterday (also on no news) so perhaps investors have gotten cold feet now that the market is falling.

The post 3 ASX All Ords shares tumbling into the weekend appeared first on The Motley Fool Australia.

To combat worries about an economic downturn, it can be productive to try to think of consumer activities that could stay steady through tough times.

One such industry could be gaming and gambling.

Yes, Australians will have less disposable income to spend on such pleasures after multiple monster interest rate hikes. But history shows consumers look for an escape when a struggling economy is getting them down, and some types of gaming don't suffer.

Helpfully, Morgans senior analyst Alexander Mees this week gave his thoughts on the ASX shares in this industry and how they might fare in their August financials.

There were three in particular that his team rated as a buy.

Recession-proof gaming

The coming reporting season will be the first for Lottery Corporation Ltd (ASX: TLC) after its separation from ASX share Tabcorp Holdings Limited (ASX: TAH).

Mees, on a Morgans blog post, forecasts a "steady performance" with earnings before interest, taxation, depreciation and amortisation (EBITDA) up 13% to hit $691 million.

"The larger lotteries division is forecast to deliver all of the growth in earnings (EBITDA up 18%), with Keno EBITDA down 15% after a strong FY21."

According to a Netherlands study, lottery businesses seem to be "recession-proof" compared to other forms of gaming. 

"[Lotteries consumption] is characterised by a vast and solid growth that appears to be independent of the business cycle and of temporary shocks to income," said research authors Csilla Horváth and Richard Paap. 

"During recession the lottery consumption outperforms any other sector in terms of growth."

Mees' team has an add rating for Lottery Corporation shares.

"We forecast 5% growth in EBITDA into FY23."

Another growing lotteries operator

ASX share Jumbo Interactive Ltd (ASX: JIN) is another lotteries provider that Morgans analysts favour at the moment.

Mees is expecting next month's reporting season to show "another year of good growth" for the company.

"We have increased our EBITDA estimate by 3% to $55 million, up 13% y/y with most of the growth driven by the rapidly expanding SaaS [software-as-a-service] division," he said.

"We forecast 24% growth in EBITDA into FY23."

Jumbo Interactive shares have fallen about 17% year to date while paying out a dividend yield of 2.5%.

It seems other professionals agree with Mees. CMC Markets shows five out of seven analysts recommend Jumbo Interactive as a strong buy.

One ASX share for a long-term bet

BlueBet Holdings Ltd (ASX: BBT) is in the field of sports gambling. As such, it's more vulnerable in the short term to an economic slowdown.

But Mees' team finds it attractive for it for its "significant" long-term potential.

"BlueBet's Australian business is forecast to achieve strong growth in turnover in FY22 (48%) as it increases marketing costs to drive customer acquisition," Mees said.

"Those higher marketing costs are likely to reduce EBITDA in Australia to breakeven, with the investment in the US growth strategy pushing group EBITDA to a forecast loss of $1.2 million."

While Morgans analysts have lowered the 2022 gross profit forecast by 4%, BlueBet just signed up its fourth US state.

This ASX share is currently going for a considerable discount compared to just a few months ago. The price has plummeted more than 63% year to date.

The post Players gonna play: 3 ASX shares set for a strong reporting season appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

Bluebet Holdings Ltd (ASX: BBT)

The BlueBet share price has jumped 19% to 56 cents. The catalyst for this is news that BlueBet has signed a 10-year market access agreement with Caesars Entertainment to operate a new online sportsbook in Indiana. This provides BlueBet with a big market opportunity. There are ~6.8 million people living in the state and $4.5 billion in wagering handle was generated during the last 12 months.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is up 11% to $9.92. Investors have been buying this KFC restaurant operator's shares following the release of its FY 2022 results. For the 12 months ended 1 May, Collins Foods delivered an 11.1% increase in revenue to $1,184,5 million and a 25% jump in underlying net profit after tax to $59.7 million. This was driven by growth across the business.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 6% to $7.44. This morning this gold miner provided an update on its KCGM mill optimisation pre-feasibility study. That update reveals that the study was a success with Northern Star identifying an opportunity to deliver higher-margin ounces at improved capital efficiency.

Tassal Group Limited (ASX: TGR)

The Tassal share price is up 13% to $4.50. This follows news that the seafood producer has received a takeover approach. According to the release, fellow seafood company Cooke Inc has tabled a $4.85 cash per share offer. The Canada-based rival's offer values Tassal at approximately $1 billion. However, management isn't biting. It believes the offer doesn't reflect the fundamental value of the business, nor is it in the best interests of shareholders.

The post Why BlueBet, Collins Foods, Northern Star, and Tassal shares are charging higher appeared first on The Motley Fool Australia.

The BlueBet Holdings Ltd (ASX: BBT) share price is on the move during lunchtime trading on Tuesday.

This comes after the mobile-first online wagering provider announced it has expanded its presence in another US state.

At one point, BlueBet shares soared 42.5% to an intraday high of 67 cents. However, some profit taking by investors has led the company's shares to retrace to 54.5 cents, up 15.96% at the time of writing.

BlueBet secures market access to Indiana

The latest release by the company has excited shareholders with the BlueBet share price accelerating today.

In its announcement, BlueBet advised it has signed a lucrative online market access agreement with Horseshoe Hammond, LLC.

Based in Indiana, the co-party is a 400,000-square-foot casino that is owned by global casino giant Caesars Entertainment.

In essence, this will allow BlueBet to operate a new online sportsbook in Indiana under its ClutchBet B2C brand. Although, regulatory approval and licencing will need to be acquired first.

The market access agreement has an initial 10-year term.

BlueBet noted Indiana is home to roughly 6.8 million people. The US state first legalised online sports betting in October 2019 and has generated $4.5 billion in wagering handle in the last 12 months.

A number of noted professional sports teams are based in the state such as the Indiana Pacers and Indianapolis Colts.

With market access now expanded to four US states, BlueBet will employ the first stage of its "Capital Lite" US entry strategy. This consists of launching ClutchBet to demonstrate the capability of its technology and team to run profitable sportsbooks in the United States.

The company expects to take first bets in its first US state, Iowa, within the coming weeks. It is set to be followed by Colorado and Louisiana in Q2 FY23 and Indiana in H2 FY23.

Management commentary

BlueBet CEO Bill Richmond touched on the milestone achievement, saying:

BlueBet now has market access in four US states, which provides a strong platform to roll out our B2C brand, ClutchBet, and demonstrate the capability of our technology and team to run profitable sportsbooks in the US.

There is no shortage of opportunities for further B2C expansion in the US, but our focus and capital are pointed firmly towards executing in our initial four states as we seek partners for our Sportsbook-as-a-Solution B2B offer.

BlueBet share price snapshot

Despite rocketing today, the BlueBet share price has tumbled more than 53% over the last 12 months.

These losses have come in 2022 following a major selloff of sports betting shares globally. Year to date, BlueBet shares are down 64%.

Based on today's price, BlueBet commands a market capitalisation of roughly $106 million.

The post Why is the BlueBet share price rocketing 16% today? appeared first on The Motley Fool Australia.

Here's why these small caps are highly rated by analysts right now:

Bluebet Holdings Ltd (ASX: BBT)

The first small cap ASX share to look at is sports betting company, Bluebet.

It's fair to say that 2022 has not been kind to the Bluebet share price. A selloff of sports betting shares globally has led to its shares losing almost 50% of their value since the turn of the year.

While this is disappointing, the team at Morgans remains positive and appears to see this a buying opportunity for long term focused investors. It currently has an add rating and $1.60 price target on its shares.

It commented: "BBT has materially de-rated (FY22 EV/Revenue of 1.6x) in recent months as online sports betting (OSB) peers have come under significant valuation pressure. We remain confident that BBT will retain a disciplined approach in its dual track growth strategy and think this differentiated model will support a re-rating as a track record is established."

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is a global document productivity software company behind the Nitro Productivity Suite. Nitro's core solution provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

As with Bluebet, its shares have fallen heavily in recent months and have lost 45% of their value in 2022.

Goldman Sachs sees this as a buying opportunity. It is positive on Nitro and believes the market is underestimating its growth potential as a challenger in a US$34 billion total addressable market across PDF, e-signing and workflows.

It commented: "Nitro is down ~50% since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro's potential, in our view. We are positive on Nitro's structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew."

Goldman Sachs has a buy rating and $2.60 price target on its shares.

The post Analysts name 2 exciting small cap ASX shares to buy with huge upside appeared first on The Motley Fool Australia.

Three that investors might want to get better acquainted with are listed below. Here's why they should be on your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan's software allows sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Morgan Stanley is positive on Bigtincan's future. So much so, it has an overweight rating and $2.10 price target on its shares. The latter is more than double the current Bigtincan share price.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is this online sports betting company. Over the last couple of years, BlueBet has been growing its top line very strongly. This has been driven by the increasing popularity of mobile sports betting and its growing, but modest, market share. Management appears confident in can continue to grow its market share in Australia in the coming years and also has its eyes on the enormous US market.

The team at Morgans remains positive on BlueBet. The broker currently has an add rating and $1.60 price target on its shares. This is just less than double the current BlueBet share price of 84 cents.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Whispir estimates that it has a total addressable market of US$4.7 billion in just the United States market. So, with management guiding to annual recurring revenue (ARR) of $65 million to $70 million in FY 2022, it clearly has a very long growth runway.

Canaccord Genuity recently reiterated its buy rating and $3.50 price target on the company's shares. This compares to the latest Whispir share price of $2.06.

The post 3 small cap ASX shares with enormous upside potential appeared first on The Motley Fool Australia.

Key points

• The Bluebet share price is struggling today
• Shares are on the way down despite a record quarter in turnover for the company
• Bluebet also exceeded all its prospectus forecasts this quarter
• The company says it is well-funded to fuel its growth vision into the US market.

Shares in online wagering business Bluebet Holdings Ltd (ASX: BBT) are struggling today, down 5.1% to 93 cents each at the time of writing.

It seems investors expected more from the company's earnings update for the quarter ending 31 December 2021 released today.

Bluebet shares slide despite 'record turnover' in Q2 FY22

The company released several investment highlights from the quarter, including:

• Exceeding its calendar year (CY) 21 and 1H FY22 prospectus forecasts for all key metrics
• Record turnover in Q2 FY22 of $138.6 million, up 54.8% year on year
• Melbourne Cup week up 62.2% year on year, delivering new records for weekly turnover
• Q2 FY22 net win of $13.8 million, up 51.6% from the year prior
• First time depositors (FTD) increased 86.9% for the quarter
• BlueBet announced its second market access agreement in the US

What else happened last quarter for Bluebet?

Bluebet ended the period with revenue of $138.6 million – a 55% year on year gain – and a net win of $13.8 million, up 52% from the year prior.

The company also maintained a net win margin of 10% through, it says, a "disciplined approach to managing promotions". This has resulted in a net win margin of around 11% for the 6 months year to date.

Bluebet also exceeded its CY21 and 1H FY22 Prospectus forecasts across all key metrics, according to the company's announcement. These include turnover of $444.6 million, a bet count of 8.8 million, and active customers of 45,087 (up 13.2%) to name a few.

As of 31 December 2021, Bluebet had $55.4 million in cash on the balance sheet, including customer deposits of $3 million.

Aside from that, the company also announced that its wholly-owned subsidiary Bluebet Colorado LLC signed an agreement with The Wild Card Saloon & Casino, a casino operator based in Colorado, USA.

The agreement has a term of 10 years and enables Bluebet to conduct business-to-consumer (B2C) sportsbook operations online in Colorado, pending regulatory approval.

What's next for Bluebet?

The company says that it is well funded to work towards its growth vision and has sufficient cash runway to cover its expansion moves.

It also prepared a prospectus last year in relation to an offer of 70.2 million shares at an issue price of $1.14 per share to raise another $80 million.

The company says it has deployed these funds largely in line with expectations to the designated areas, without any cost blowouts.

It also notes that first bets are expected with its Colorado deal in Q1 FY23, whereas it expects first bets from its Iowa outfit in late March this year.

The company didn't provide any specific earnings guidance in its quarterly update today.

Bluebet share price snapshot

The Bluebet share price is trending down in 2022 having lost around 37% since January 1. This came after sliding 20% in the last week alone.

Zooming out, the company's shares are lagging benchmarks and are down more than 18% in the last 12 months of trading.

The post Here's why the Bluebet (ASX:BBT) share price is tanking 5% today appeared first on The Motley Fool Australia.

Key points

• BlueBet shares are rising after it gained access to the Colorado market in the US
• Colorado is the sixth largest sports betting market in the country
• Management is in discussions for similar agreements in other states

The BlueBet Holdings Ltd (ASX: BBT) share price has come back from the public holiday in style.

In morning trade, the sports betting company's shares are up over 10% to $1.15.

Why is the BlueBet share price charging higher?

The catalyst for the rise in the BlueBet share price on Thursday has been the release of an announcement relating to its US operations.

According to the release, the company's BlueBet Colorado business has signed a 10-year skin agreement with The Wild Card Saloon & Casino. It is a casino operator based in Blackhawk, Colorado.

The agreement is BlueBet's second skin agreement in the US and allows BlueBet to conduct business to consumer (B2C) online sportsbook operations in Colorado as an extension of its existing casino licence. Though, this is pending the completion of regulatory approval and licensing.

The Colorado market is a great one for BlueBet to have access to. The release notes that it is the sixth largest sports wagering market in the US, with turnover of US$3.7 billion in the 12 months to November 2021.

Furthermore, a big positive for BlueBet is that Colorado has among the highest levels of online wagering in the US with 98% of sports bets placed online. Colorado is also the state BlueBet has chosen for its US headquarters, which has been established in Denver.

But management is settling just for Colorado. It advised that it remains in commercial discussions with skin holders in several other target states and is assessing ten further states where sports betting is legal but not yet operational against its established entry criteria.

What now?

BlueBet notes that this agreement forms part of its two-stage US entry strategy. The first stage is the launch of a B2C business to gain access to the lucrative US market and demonstrate the capability of BlueBet's technology and team.

After which, once BlueBet has gained a foothold in the market, the second stage will be launching its white-labelled Sportsbook-as-a-Solution offering, enabling partners to benefit from BlueBet's market-leading technology and expertise running successful sportsbooks.

Management commentary

BlueBet's Chief Executive Officer, Bill Richmond, commented: "We are excited to announce a market access agreement with The Wild Card Saloon & Casino in Colorado. It is our second skin agreement in the US, as we continue our capital light US entry strategy by aligning with existing licence holders to access the world's largest sports wagering market."

"Colorado is a huge opportunity for BlueBet. It is the US's sixth largest sports wagering market with over US$3.7 billion in turnover in 2021, almost entirely wagered online. We are confident that Colorado bettors will respond well to our mobile-first online offering, and we look forward to offering them our range of innovative products and features," he added.

The post Why is the BlueBet (ASX:BBT) share price surging 10% higher today? appeared first on The Motley Fool Australia.

Three that investors may want to get better acquainted with are listed below. Here's what you need to know about them:

BlueBet Holdings Ltd (ASX: BBT)

The first small cap ASX share to watch is this online sports betting company. Thanks to the increasing popularity of mobile sports betting, BlueBet has been growing at a rapid rate. For example, during the first quarter, the company reported a 63.8% increase in active customers to 39,195 and a 67.4% increase in turnover to $125.9 million. The good news is that management believes it is well positioned to substantially grow its modest market share in Australia and has its eyes on the US market.

Morgans is bullish on BlueBet and has an add rating and $2.60 price target on its shares.

Step One Clothing Limited (ASX: STP)

Another small cap ASX share to watch is Step One. It is a direct-to-consumer online retailer of men's underwear which raised $81.3 million via an IPO late last year. Some of these funds will be used to support the company's growth strategies, which include growing Step One's existing customer base in Australia and the UK and investing in establishing a presence in the enormous US market.

Morgans is positive on Step One despite a recent trading update which fell a touch short of expectations. The broker doesn't believe its prospects for growth over the long-term are diminished. As a result, its analysts have an add rating and $2.70 price target on its shares

Whispir Ltd (ASX: WSP)

A third and final small cap ASX share to watch is Whispir. It is a software-as-a-service company that provides a communications workflow platform automating interactions between organisations and people. Demand for its offering has been growing strongly over the last couple of years, with a number of blue chips becoming customers. One of those is telco giant Singtel, which is the owner of Optus. Last week it selected Whispir to replace its core SMS notification systems enterprise-wide.

Wilsons is a fan of Whispir and currently has an overweight rating and $4.84 price target on its shares.

The post 3 exciting small cap ASX shares to watch in 2022 appeared first on The Motley Fool Australia.

Here's why they could be worth getting better acquainted with in 2022:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.  It has a number of blue chip clients such as Australia and New Zealand Banking Group (ASX: ANZ), Guess, sports giant Nike, and ThermoFisher.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is BlueBet. It is an online sports betting company that allows users to bet on all Australian and international racing and sports. BlueBet has been growing its sales at a very strong rate thanks to the increasing popularity of sports betting and the shift away from betting houses. Given its modest market share in Australia and management's US ambitions, it has a very long runway for growth over the next decade.

PlaySide Studios Limited (ASX: PLY)

A final small cap ASX share to watch is PlaySide Studios. It is a growing independent video game developer with an expanding portfolio of games. These include games based on its own original intellectual property and those through licensing deals with Hollywood studios such as Disney. It also recently announced a landmark work-for-hire development agreement with 2K Games. It is a label of leading global publisher Take-Two Interactive Software (NASDAQ: TTWO), which is best-known as the company behind the Grand Theft Auto series.

The post 3 small cap ASX shares to watch in 2022 appeared first on The Motley Fool Australia.

Both these small cap ASX shares have been given buy ratings and are tipped for big things in the future. Here's why they should be on your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It operates a beauty-focused integrated content, marketing, and ecommerce platform that partners with a broad and diverse portfolio of brands and products.

This strategy has worked wonders and led to Adore Beauty's active customers growing strongly to almost 1 million, which is underpinning strong sales growth.

Pleasingly, while this is a large number, it is still only a small portion of an Australian beauty market worth $11 billion a year at present. This gives Adore Beauty a long runway for growth over the next decade.

UBS is a fan of the company. It currently has a buy rating and $6.00 price target on its shares.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch carefully is this mobile-first online wagering provider.

BlueBet allows users to bet on all Australian and international racing and sports through its website and app. Thanks to the increasing popularity of mobile sports betting, its sales and customer numbers have been growing strongly in recent years.

Pleasingly, though, BlueBet is still scratching at the surface of a huge market opportunity in both Australia and the United States. And while the latter market will not be easy to crack, BlueBet is forming partnerships with industry players in an attempt to gain access.

The team at Morgans is very positive on BlueBet. The broker currently has add rating and lofty $2.60 price target on its shares.

Morgans recently commented: "We remain attracted to BBT's opportunity to increase its Australian market share (currently just ~1.2%) and significant, long-term growth potential from its US market entry."

The post 2 quick-growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

The BlueBet Holdings Ltd (ASX: BBT) share price has had a shocking month on the ASX despite the company's silence. But does the 23% tumble put it squarely in the buy zone?

The Motley Fool Australia analyst Trevor Muchedzi sat down with our chief investment officer Scott Phillips last week to talk about the betting services company's outlook.

Those interested can find their entire conversation here or keep reading for a breakdown of their major talking points.

Additionally, Phillips chats with one of our analysts weekly, publishing their conversations on The Motley Fool Australia's YouTube channel every Wednesday.

At the time of writing, the BlueBet share price is up 7.78% for the day at $1.45.

The strength of the BlueBet share price

BlueBet is a small betting company within the Australian market. According to the ASX, it has a market capitalistion of around $270 million.

Muchedzi also notes it holds a market share of around 1.3%. But what's got the analyst excited about the company is its international expansion plans.

The company has begun its break into the United States' relatively new gambling market, with a unique approach to doing so.

Las Vegas has always been a gambling hot spot. However, the United States didn't legalise sports betting in all states until 2018. Muchedzi comments:

It's not often where we see Australian companies having an edge over US companies, especially in their home market, but because we've been in the sports betting industry for far longer than US companies we do have Australian companies that have got an edge in that particular market.

However, the US doesn't allow betting across state lines. That means a betting company needs to be separately licensed in every US state they operate in.

While many betting companies are jumping in to take a share of the US' larger markets, BlueBet is targeting what Muchedzi calls second-tier markets. These are smaller markets with less competition. Muchedzi states:

You've got traditional gambling companies that are operating in those markets and, for the last 50 or 100 years, these were brick and mortar type of gambling companies.

What BlueBet is wanting to do is to go into those markets and then partner with those gambling companies that already have got licenses to provide sports betting…

[It plans to] provide the technology behind online sports betting.

According to Muchedzi, that tech is hard for traditional gambling companies to get their hands on.

The way-around posed by BlueBet has another benefit too. It allows the company a slice of the market without paying for customer acquisition.

However, BlueBet still faces numerous challenges.

BlueBet's weaknesses

Muchedzi noted a number of factors that might negatively impact the BlueBet share price in the future.

Firstly, the company is still small. While it has a history of execution in Australia, the US is a different kettle of fish.

Secondly, it's operating in a highly regulated environment. The gambling sector – particularly that of the US – comes with many risks, one being potential litigation. Muchedzi states:

If they're involved in any form of litigation, that will … result in in some significant costs for BlueBet, and for all their partners.

Finally, the US market brings an immense amount of competition. However, it's also extremely localised.

Right now, BlueBet has failed to secure a partnership in one of its targeted states. Though, it's wiggled its way into another.

It is now looking to break into its 3 remaining target states, but the company doesn't have a lot of control over its ability to enter individual states, potentially making its execution plan risky.

So, all that considered, is BlueBet a buy?

Here's what Muchedzi had to say about the Bluebet share price:

The investment story is very simple. The US market is, really, a new market and it's enormous. It's expected to really grow to something like between $20 to $30 billion dollars in terms of revenue over the next three years…

Also, I really like their sportsbook-as-a-service offering. It's really like a software type of business model where they don't have to invest significantly in terms of customer acquisition…

If they get it right, if they get into these transactions, they are really, really compelling, so it's an investment opportunity that I think is worth looking into…

[But] we have to pay attention to the risks… [L]et's see how they're executing over the next few quarters.

The opinions expressed in this article were as at 1 December 2021 and may change over time.

The post Is the BlueBet (ASX:BBT) share price a serious bargain after losing 23% in a month? Here's what Motley Fool analyst Trevor Muchedzi says appeared first on The Motley Fool Australia.