Update to my readers who are interested in investing in GAN. I will be factoring in risk in their Chilean operations and creating a revised part 4. It is safe to say that I am more pessimistic about this idea than I once was. Expect to see a post by tomorrow with a revised price target. My intuition is that it will be lower than $1.41 to $1.45.
If you have read my newest post on BRAG, I believe that is a better risk/reward play than GAN given that the downside is 20% and upside is 60-180%+, or a 3-6x reward/risk ratio (based on napkin math). We can size BRAG at a larger position given the lower downside and higher upside. For GAN, there is potential for major capital losses if Sega Sammy walks away and the company goes bankrupt.
I just wanted to update readers that I took profit yesterday at $1.55/$1.56.
The current trading strategy for me is to take advantage of price volatility and acquire shares if the market chooses to bring shares down to the $1.41 to $1.45 range again or lower.
If the market does this, I believe the market implied probability of the shareholder approval rate or regulatory approval rate would be too low based on my sensitivity analysis (DYODD not financial advice), which gives us a terrific risk/reward.
Also, given that this stock can go bankrupt in the worst-case scenario, please exercise adequate portfolio management and risk management. The idea with special situations like this is to be able to bet on these scenarios forever. Based on the % of your investment portfolio, think to yourself: will I be able to comfortably invest this size for the next 20 years and not risk major declines in my portfolio value? You need to be able to invest in enough of these to realize the alpha.
*Not investment advice, do your own due diligence, entertainment purposes only, seek assistance from a professional financial advisor.
Update to my readers who are interested in investing in GAN. I will be factoring in risk in their Chilean operations and creating a revised part 4. It is safe to say that I am more pessimistic about this idea than I once was. Expect to see a post by tomorrow with a revised price target. My intuition is that it will be lower than $1.41 to $1.45.
If you have read my newest post on BRAG, I believe that is a better risk/reward play than GAN given that the downside is 20% and upside is 60-180%+, or a 3-6x reward/risk ratio (based on napkin math). We can size BRAG at a larger position given the lower downside and higher upside. For GAN, there is potential for major capital losses if Sega Sammy walks away and the company goes bankrupt.
I just wanted to update readers that I took profit yesterday at $1.55/$1.56.
The current trading strategy for me is to take advantage of price volatility and acquire shares if the market chooses to bring shares down to the $1.41 to $1.45 range again or lower.
If the market does this, I believe the market implied probability of the shareholder approval rate or regulatory approval rate would be too low based on my sensitivity analysis (DYODD not financial advice), which gives us a terrific risk/reward.
Also, given that this stock can go bankrupt in the worst-case scenario, please exercise adequate portfolio management and risk management. The idea with special situations like this is to be able to bet on these scenarios forever. Based on the % of your investment portfolio, think to yourself: will I be able to comfortably invest this size for the next 20 years and not risk major declines in my portfolio value? You need to be able to invest in enough of these to realize the alpha.
*Not investment advice, do your own due diligence, entertainment purposes only, seek assistance from a professional financial advisor.