Draftkings are acquiring Golden Nugget (GNOG) so should I buy more GNOG before this occurs, or increase my position in Draftkings? My GNOG average isn’t so hot
Yahoo finance say :If a deal comes through, Golden Nugget shareholders will receive 0.365 shares of New DraftKings’ stock for each share held.
The transaction is expected to close in the first quarter of 2022.
…but what are the implications of this if one grows at a slower rate to the other?
On this news GNOG Stock up +50.77% while DKNG stock only up +1.49% today. In M&A The stock of the acquired company (in this case GNOG) will normally jump up for obvious reason.
Glad I have shares on both companies DKNG and GNOG.
I have just sold out of gnog on seeing this news. Average of 10.86 and sold out at 18.59 so happy enough and can’t be bothered with the merry go round until the deal goes through.
To me GNOG and DKNG is a long time hold, irrespectively wether the merger is completed or not. But I will keep swing trading part of the stock to make some profit and get a better avarage price.
DKNG is buying GNOG for a reason. The online gambling/gaming/casino is a hot sector in the US due to proliferation of gambling in the US. There are more states will allow online gambling to increase their revenue. GNOG is already profitable company.
Both companies revenues are growing are higher the the US market avarage.
If you own shares in both, which do you buy more for? GNOG, in the hope that buying it now will be worth more when converted to Draftkings next year?
Indeed the stock price of acquired company in this case will jump up for obvious reason.
But the current price might have refected this acqutition news as the price of GNOG Stock jumped up significantly +50.77% on the day the news was released.