I have a noob question about LCA. When you guys started talking about it, it was easier for me to look at it as an investment in Golden Nugget Online Gaming. That's how all these SPACs are, right? They are under one ticker and eventually, if everything goes right, then they will start trading under another ticker, right?
I know some of y'all feel that you got burned by LCA recently (or at least didn't sell when you had a more favorable profit), but if I actually believe in the potential of Golden Nugget Online Gaming (GNOG), would y'all think it's a good buy at it's current levels? Alternatively, since I see potential in Golden Nugget Online Gaming, should I just wait until it switches to the GNOG ticker?
*Bonus DKNG question: I see concern being expressed cause we're not sure if the NFL season is going to continue. When the NFL is done, the NBA is next up. When would the NBA even start up next year though? What's going to keep people using the app if there are no sports on TV?
I will take on the LCA question first. There are patterns with most SPACs and depending on how nice the company looks for future prospects it's going to have at least one big pop early on in the stages prior to merger... sometimes it will have two this is all dependent on news catalysts and the financial health of the company the SPAC is merging with so with LCA yeah there is a lot of excitement for igaming as more states legalize it and Golden Nugget moves into those territories.
It got all the way up to $19 that's not a bad place to sell if your cost basis was around $12 or so but I think some people felt they were burned because it didn't get higher and has since dropped back to $14.
It's not "over" it can still run but it hasn't had any news. It dropped on no news because traders are impatient and institutions haven't gone all in on it.
SPAC mergers initially can be unpredictable once the ticker change. People feel they got burned by Hyliion because it's dropped since merger. But Tattooed Chef saw a big increase after merger.
Once the company merges its like any other company, you don't have the $10/share downside to manage your risk, it can fall completely off.
You have to treat the company at that point like any other stock.
I still hold LCA shares my cost basis is very low, we don't have merger news yet but it will come at some point.
Even so it’s profitable and they are moving into Michigan and PA in January most likely which will further increase their revenue.
I don't like Tilman, I think he does a poor job pumping his stocks but igaming should be something that even he cannot mess up.
I don't tell anyone to buy anything or when to sell, I can only tell people what I like.
LCA nearly doubled from 10 to 19 a share, the thing with stocks is you need an entry plan but also an exit strategy or like I do sometimes I like to sell for profit and then buy back in, I'm eliminating my risk and whatever happens next is gravy.
