Trading Symbol:
OTC: $PLGNF TSX.V: $DEAL FRA: $7CR
Upcoming Catalysts:
News releases of Malta and South African gaming licenses, number of partnership agreements. Possible merger.
Time Frame: Days - Weeks: $1.50 Months: 2.50-$3.50
Support Of the Catalyst Narrative:
Playgon has proprietary mobile first Live Dealer and E-Table Casino Games
A great coverage piece in USA News Group:
https://usanewsgroup.com/2020/10/08/gamers-can-hold-the-live-las-vegas-experience-in-the-palm-of-their-hands/Playgon Games
Summary of Playgon Games:
Playgon operates in the online gambling business – they offer a live-dealer technology for table games like Baccarat, Blackjack and Roulette. One major player dominates the space - Evolution Gaming. There has been a lack of innovation in the sector – live dealer technology from a decade ago remains the same in 2021. The company’s tech is designed to be optimized for mobile and allows for lower latency and more hands per minute – an attractive feature for operators. With increased ease of use, better UI/UX and Las Vegas branded games, Playgon is primed to attract high-roller users to play online.
Disrupting a Monopoly:
Playgon’s sleek design, proprietary technology and Las Vegas branded games are primed to disrupt Evolution’s monopoly on the sector. For our audience, it is important to understand how the sector works: Operators (i.e. Bet365, Pinnacle, BetVector, 888, etc.) seek out technology vendors for their online casino. While they may build their own games to some extent, a majority of games are built by third party vendors. To date, almost all operators offer their gaming solutions both live dealer and computer-based to some extent. After spending the majority of 2020 building its studios in Las Vegas, the Company is now ready to launch and has outlined in their investor presentation that they anticipate USD ~$19.5m in revenue in 2021 alone. This would be an incredible milestone to achieve, and would put the company as trading at a mere 4x 2021 EV/Revenue. Relative to Evolution Gaming, this would represent a steep discount.
Main players in the Live Dealer iGaming market:
*Stock quotes are as of November 11, 2020
Financials and Management:
The heavy lifting/investment in the technology platform has already been done – $16M has been invested to build a fully operational/designed-for-mobile platform currently being demonstrated around the world using the Las Vegas studio.
The principles of the company know what they’re doing - Darcy (CEO) and Guido (President) have founded or led iGaming companies such as Chartwell Technology and Amaya Gaming Group – they’ve developed digital gaming platforms launched in Canada, Asia, and Europe. They're the real deal...pun intended.
Playgon has little debt ($500K short term and $1.3M long term the last time I checked), reporting insiders own 35% of outstanding shares and you could potentially increase that much higher considering friends and family of insiders, which might explain the tight trading ranges of the stock.