Some pieces are missing, but the HOFV stock puzzle comes together – News Couple

Some pieces are missing, but the HOFV stock puzzle comes together

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Investors who take risks can view HOFV shares as stock manipulation

Earlier this summer, I suggested it Hall of Fame Resort & Entertainment Co. (Nasdaq: HOFV) It was a speculative stock worth looking into. Following the company’s third-quarter earnings report, I support this suggestion. HOFV has three distinct segments: media, gaming, and on-site asset creation. Each has an association with the popularity and growth of the National Football League.

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Although The Pro Football Hall of Fame is a separate legal entity from HOFV, they share a common cause. And if you listen to the earnings call, you’ll hear the word synergy mentioned a lot. The company’s media and on-site asset creation will be able to benefit from its relationship with the Pro Football Hall of Fame. One example is the company’s partnership with Dolphin Entertainment (Nasdaq: DLPN) To offer non-fungible tokens (NFTs) that can take advantage of the growing market for sports collectibles.

I would encourage you to listen to the company’s earnings call. When you do, you will realize that there are many things to be excited about. One of these is the possibility of sports betting if Ohio legalizes sports betting.

However, this is a company that is still in its early growth stage. However, this does not mean that this is a profitable company. The company has a small amount of revenue coming out the door. For the quarter ended September 30, 2021, the company generated $3.5 million in revenue. This was a 108% increase from the previous year and a 47% increase from the previous quarter.

Hard time being stock shots and shovel

As I wrote earlier this summer, this is an eclectic game about the country’s interest in the National Football League (NFL). And this is where this story gets scary for some investors. Simply put, the company has about $28.5 million on its balance sheet, but it will need significantly more funding as it continues to build its on-site infrastructure.

The signing of a conditional document with Erie Bank in the amount of up to $25 million will help unlock additional financing from the public and private sectors and help the company implement the concept of “just-in-time financing”.

On the earnings call, CEO Michael Crawford noted that the company had made a market presentation (ATM). This is a reflection of the position the company took earlier this year. For now, Crawford says, the company has not taken advantage of the offer to a large extent and so it continues to provide them with access to financing as needed.

However, like many other companies, HOFV is not immune to construction delays due to supply chain bottlenecks. This pushed the company’s timeline to 2022 to complete some of its projects. And at this point, the potential for this vertical is somewhat at the mercy of existing supply chain delays.

Bottom Line on HOFV Stock

The concept of the whole being greater than the sum of its parts is a convenient way to look at the stock of HOFV. If you view any segment as an independent revenue driver, the opportunity is less attractive. Construction costs and delays in the supply chain will hamper the physical infrastructure. Legalizing sports betting is not a certainty.

These are all valid risks. But when you think about how all the parts work together, the focus is on the potential.

I define a penny stock as a stock that is trading for less than $5. Whether or not that fits your definition, we can all agree that HOFV is a low priced stock. This means that a significant swing of the stock in one direction or another does not require much. That was the case in 2021 and some investors hold a heavy bag, especially those who bought shares at $6 earlier this year.

If I were one of those investors, I wouldn’t be the one serving you a cup of holiday cheer. You may wait a bit. However, if you are not into stocks and have money to risk, now might be a good time to take a small position.

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