Super Group: Super Discount Has Arrived

Summary

  • Super Group reported a mixed Q1'22 earnings report back in May, but the company pulled strong guidance for 2022.
  • The company is still working on closing an attractive deal to enter the U.S. online gambling market.
  • The stock only trades at 5.5x '22 EBITDA numbers, but the '23 metrics are unknown now.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

online casino and gambling concept, hand touching shining sign 777 and dollars symbols, blue horizontal neon banner

Sergey Shulgin/iStock via Getty Images

As with most SPAC transactions, Super Group Limited (NYSE:SGHC) has collapsed following the closing of the deal. The online gambling company is actually profitable, questioning whether the stock has dropped 60% from the SPAC deal

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This article was written by

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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SGHC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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