*Together with GameSquare, see disclosures below
Call me a nerd, but I spend a lot of time on the weekends reading about stocks and looking at price charts.
After 20+ years of trading, I know I can’t find hours of time to dig into stocks during weekdays, so the weekend is the most important research time I can get.
It’s where I put together my watchlists for the week ahead and hopefully come across some stocks that are trading at levels that are attractive to me.
As I was reviewing a previous “Bright Idea 💡” from a few months ago, I literally couldn’t believe what I was looking at.
After digging into it more, I am now convinced it’s one of the best opportunities I see in the whole market right now.
The stock is GameSquare Holdings (Nasdaq: GAME)
Let me tell you exactly why I think this is something you need to seriously look at immediately.
Just a few weeks ago GAME announced their quarterly earnings report. Look at some of the highlights:
👉Record pipeline and recent contract wins expected to accelerate revenue growth in second half of 2023
👉Company reiterates 2023 full-year guidance reflecting sales of $75 to $80 million, and gross margins of 30% – 35%
👉Recently closed multiple seven figure, multi-year deals with customers across the healthcare, automotive, and CPG sectors
👉We removed an estimated $5 million of annualized operating costs during the quarter and we continue to expect to realize at least $8 million of total annualized cost savings by the end of the year.
Folks, this is a company that is hitting on all cylinders right now, yet the stock has slowly drifted lower and lower during the summer doldrums.
If there has ever been a candidate for a strong reversal, it has to be GAME right now.
Looking at the stock chart right now, you would never guess that GAME revenues have been literally exploding lately 💥 – just as they have been forecasting all year.
You’ll really find this insane…
Look at the literal book value of GAME right now (as of their latest earnings report)
Forget about the future value of the amazing business they are building right now, the celebrity partnerships, the high-profile investors involved… the book value of GAME is $3 – yet the price of the stock today is hovering around just $2 a share.
This means GAME is actually trading for less than book value right now.
Can you say “massive opportunity” with me??
Just as a random comparison, I pulled up the book value on one of the hottest stocks in the world right now, Nvidia (NVDA).
Yeah, the book value on NVDA is around $11…. Yet the stock is trading around 40 times higher than that 🤯.
Go pull that value on just about any other stock you follow right now and see how cheap GAME now looks in comparison.
The next thing we need to discuss is the price chart right now.
There have been some very nice trading windows if you waited for the bottoming process, then played the bounce after the stock traded back above the hourly indicators (which we are at right now):
This chart just shows the last month, and this back-and-forth action feels to me like a major bottoming process.
GAME has a history of small bursts of momentum that translate into dramatic upswings like this 52% pop in just 14 days…
Or this 128% gain that we witnessed in less than a month…
And the spectacular 281% BULL RUN that we saw earlier this year in less than 4 months —
I pulled the following from Tickeron in order to see what their AI recommendations looked like, which further reiterates exactly what I am seeing right now:
The RSI Oscillator points to a transition from a downward trend to an upward trend — in cases where GAME’s RSI Oscillator exited the oversold zone, 41 of 44 resulted in an increase in price. Tickeron’s analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for GAME just turned positive on August 25, 2023. Looking at past instances where GAME’s MACD turned positive, the stock continued to rise in 40 of 45 cases over the following month. The odds of a continued upward trend are 89%.
Following a +10.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where GAME advanced for three days, in 139 of 186 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
I am telling you, GAME is one of the highest-growth and most underrated companies out there right now.
I think the market has completely missed the mark on this one and it’s worthy of another look.
From their recent investor presentation, you can clearly see that they have been forecasting stellar revenue growth, and they have been delivering!
To achieve growth like this, you want to be in a high-growth sector which GAME clearly is in. Here is another chart from their presentation that shows how massive the TAM (total addressable market) is for them…
Now, ask yourself, “What will happen to the stock price if GAME gets even close to these lofty numbers?”
You can see why I think there is a big disconnect between where things are today and what is possible soon.
If you like GAME (like I do) then you are in good company!
Just check out some of the “A-list” roster associated with them, including:
👉Ninja, the #1 video game streamer on Twitch
👉Jerry Jones, the owner of the Cowboys (the greatest team in the NFL)!
(that GAME hat looks good on you, Jerry!)
We’re looking at a company that doesn’t want to just be an E-sports company… it’s working to become the NFL of professional gaming!
And with:
- Dozens of high-level sponsors (many of whom sponsor traditional sports clubs)
- 350+ brands and counting under their umbrella
- An army of 1500 influencers engaging in grassroots marketing
- And a revenue goal of $100 MILLION+ on the horizon…
There is so much happening with GAME right now, it might take a while to digest it all, but do yourself a favor and start to do your homework on it right now!
But just because I love this stock doesn’t mean you should go in blind, which is why you should take a moment before you start the day’s trading and see all of the details for yourself and build your own trading game plan. Take time to fully understand the risks, and potential rewards, of this amazing company if you decide to invest.
A great place to start would be right here on the company’s website or by digging into the company’s most recent investor presentation.
As always…to YOUR success,
By the way… 👉 Text “RAGE” to (888) 404-5747 to get all of my latest HOT STOCK ideas delivered right to your phone!
*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results.
*ISSUER-PAID ADVERTISEMENT. RagingBull has been paid ten thousand dollars by ach bank transfer by GameSquare for advertising from a period beginning on september 11, 2023 through september 14 of the same year. RagingBull previously has been paid fifteen thousand dollars by ach bank transfer by GameSquare for advertising from a period beginning on July 12, 2023 through July 14 of the same year. RagingBull has previously been paid twenty thousand dollars by ach bank transfer by GameSquare for advertising from a period beginning on July 5, 2023 through July 7 of the same year. To date, RagingBull has been paid a total of forty-five thousand dollars from GameSquare. As a result of this advertisement and other marketing efforts, Raging Bull may receive advertising revenue from new advertisers and collect email addresses from readers that it may be able to monetize. As of the date of this advertisement, the owners of Raging Bull, do not hold a position in GameSquare. This advertisement and other marketing efforts may increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of GameSquare, increased trading volume, and possibly an increased share price of the GameSquare securities, which may or may not be temporary and decrease once the marketing arrangement has ended. As of the date of the issuance of this advertisement, the owners of Raging Bull do not hold a position in GameSquare, though they reserve the right to buy or sell shares in the covered company at any time following the dissemination of this communication.
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