Bragg Gaming Group Inc T.BRAG

Bragg Bucking the Trend Today

[joebravo]

Nice to see Bragg in the green while the market is still indecisive.  

Today's 1.00% rate hike by the BOC was a more aggressive surprise as it was anticipated they would raise interest rates by 0.75%.

Other than that, they are still on course to raising the rate to 3% by year end.  That has been their plan for several months now in order to calm inflation.

Good thing, the rates have no effect on Bragg's bottom line.  They have ZERO Debt and are cash flow positive which means they have been financing their growth organically or internally without the need to borrow.

I'm not sure when the markets will bottom out, but as history shows, the markets will bottom out and move higher well before the actual economy does.  My guess is that we are getting very close to the bottom.  As for Bragg, I think this is the bottom.  GL

[swetazo]

This post has been removed in accordance with Community Policy

[1condor]

joebravo...BRAG does seem to find buyers around the 5.85 level (me being one). Volume does remain weak which is an issue and I really dont see that turning around anytime soon. Until then I will just accumulate at 5.85 or lower. As far as the general markets...that is a tough call...I suspect it will remain weak until this tightening cycle is over (2nd quarter 2023?). The big wild card of course

[joebravo]

1condor, the markets have been in a correction for close to 6 months now.  Many stocks are down 20% to 40% or more from their highs and are very close to bottoming depending on the quality of their business fundamentals. I've been playing the market for well over 30 years now and the markets correct well in advance of an economioc slowdown and they rebound well before the economy begins

[joebravo]

So there's the reason for excitement from yesterday's SBC Summit North America.   Bragg just announced another customer win this time with Rush Street Interactive in the Ontario iGaming market.   While the markets are in the craaaaper, Bragg keeps moving forward with their business plan and growing in an exponentially growing market.   More good news to

[Liquidything]

Rising rates = Higher discount rates used by analysts = Lower target price = Less demand for the stock = Lower stock price. Of course low debt levels are great for brag as a company, but the stock is still affected by rate hikes

[joebravo]

Higher interest rates effect those borrowing money.  Not sure what country you live in, but that's how it works in North America and most parts of the Democratic world. I have no mortgage and no debt.  I'm hoping the Banks raise rates as high as possible so the youth can afford homes as they will drop dramatically in price. Bragg is only effected by investor sentiment and short

[Liquidything]

Higher interest rates affect those borrowing money from a cash flow perspective, but still affect other assets from a valuation perspective as discount rates are increased. Set a very simple 1 year finite life example. Cash flow expected to be $10, discount rate is 5%. My Target Price would be 10/1.05= $9.52. If discount rate is instead 8%, my target price would be 10/1.08 = $9.25. As you can see

[1condor]

joebravo...all this good news will some day get recognized...however until then we have to deal with a very ugly general market which is finally beginning to price in a recession. I continue to buy below 5.85 and wait for brighter days. 

[joebravo]

1condor, a recession is already priced in.  Dow is down 14% from its 52wk high while the tech heavy Nasdaq is down a whopping 31%. If you're looking for the markets to move lower, then I wouldn't be buying any stocks. If you think the Nasdaq especially since that is where Bragg is listed and the one that's been beaten down the most has finally found a floor, then this is a great

[1condor]

joebravo...I dont think a recession is priced in. In fact, some think we will avert a recession (so who knows)...I believe we will be in a recession by 1st quarter 2023...again that is only my thinking. As far as BRAG...I now have an average price 5.98...so underwater but not by much. Still a believer in the company.