Quick bit of possible DD here for a play I personally like.
Background: SEAH is Sports Entertainment Acquisition Company, a SPAC that is set to merger with SuperGroup, which is the holding company for Betway, an online sports gambling website. Betway holds licenses in several countries around the world (UK, Italy, Denmark, Germany, Spain, Mexico, and more) and is looking to expand its business into the US by going public here. So far it is live in 5 states with plans to further expand in the future. I think most of this has been covered on the forum before so I won’t go deep into it.
I wanted to bring attention to an SEC filing from yesterday, 11/10. My understanding of this is shaky so please correct me if I’m wrong. An SEC schedule 13G was filed that appears to show that 10.7% (about 5 million shares) of the company was sold to Fidelity Investments. From my research form 13G is filed when a party acquires between 5-20% ownership of a stock without having any intention of influencing the company or taking over. I checked Fidelity’s website and I can’t find any indication that they have some kind of fund geared toward SPACs.
SEAH is up almost 8% today on almost 6 million volume, which is over double average volume.
Anyone have any ideas on this? And I apologize if I sound like a total retard, reading SEC documents is new shit for me.
After further research I did find that as of June Fidelity owned 3.1 million shares and was the top institutional holder for SEAH. This report is showing that they are adding 1.7 million shares for a grand total of 4.8 million shares. It also shows that they are evenly split between two Fidelity mutual funds.
I bought SEAH Dec calls two weeks ago around $11. I believe this is heavily, and I mean HEAVILY undervalued. They have strong cash flow and the US market is opening up in so many ways.
I have March 2022 11 calls, I’m hoping that leaves enough time for the merger to be finalized. I agree with you, I think sports betting is just beginning to boom in the US with more and more states legalizing. Also RSI and DKNG have both done pretty well post-merger.
After further research I found institutional ownership is reported between 70-75 percent and short interest is less than 1 percent! Seems like a lot of the big boys believe this is a good long term buy.
SEC form 425 filed that lists the merger between SGHC and SEAH must take place on or before March 31st 2022, or either entity can terminate the merger.
Super Group signed a sponsorship deal with the NHLs New Jersey Devils today. The deal gives them plenty of advertising in the Devil’s home arena and on TV and social media. This is now the 10th deal Super Group has signed with a professional sports franchise in the US. For NHL: LA Kings, NY Islanders, Philadelphia Flyers, and the NJ Devils. For NBA: Chicago Bulls, Cleveland Cavaliers, Golden State Warriors, LA Clippers, Minnesota Timberwolves, and Philadelphia 76ers. Its pretty impressive how many big teams they are hooked up with right now.
Right now Betway is in 5 US states: NJ, PA, CO, IA, and IN.
The fact that 7 out of the 10 teams they are making deals with are not in those states suggests aggressive expansion coming up soon. I’m really like this play, going to buy more tomorrow.
Hopefully we will have more news before the end of the week. Given the state of the market right now I don’t think it’s bad news, hopefully things will be more stable in January.
When the proxy was originally filed, the share price shot up in AH, but subsequently lost all gains by the following morning. That same day the Dow, NASDAQ and S&P all were down heavily. Hopefully this move will help prevent something similar from happening during the run up to the vote.
Super Group (SGHC) posted performance metrics for 2021 today, looks pretty strong across the board. We are still waiting to hear about the finalization of registration and a new vote date for the merger. I’m hoping to see this news come either this week or next, but I don’t have conclusive proof of that. Calls are dirt cheap right now. I’ve lost a lot of my confidence in this play and I’m bagholding it at this point, but I can’t deny this is a great point for someone who is looking to enter for the first time.
I’m in this too but running covered calls to lower my cost basis. The company is fundamentally strong and should be a decent long term hold but given current market sentiment, I believe it will either trade flat or down post merger. The good news is that there is no PIPE so there will be less selling pressure from a PIPE unlock but on the flip side certain institutional investors may have investment mandates that prevent them from holding stocks in the gaming/gambling sector
I appreciate Eric Grubman’s transparency, within the law of what he’s allowed to reveal at least. I’ve been holding shares since November, and am going to play this long. They are profitable today, don’t need to expand into the US to be successful, but are doing well on that front anyway.
Probably doesn’t mean anything, but it’s interesting the merger was delayed, when during the few preceding weeks sports betting stocks were trending down (and all of growth really near end of November). The pace of SEC filings was getting quicker, so I expect to see one soon as @glickopherz mentioned, but it’s convenient that it’ll happen after their report on 2021. Smart play if anything for share holders.
Now they are apparently just awaiting clearance on the merger from the SEC, but did not have to answer new questions this time around.
I’m currently long on this stock and would buy the dip if there is one.
Question to the forum: Why would ‘they’ be purposely holding this stock under 10 while awaiting merge and ticker change, etc. ? What is the benefit, and/or risk of not doing so? This part of SPACS I don’t understand.
Part of my original DD was that Fidelity added shares in November, and I think they own something like 15% of the company. That happened after they announced the business combination with SGHC. Hoping that means at least Fidelity is in for the long haul. SEAH is like 70% institutionally held though.
