About Landcadia Holdings IV, Inc
Address: 1510 West Loop South, Houston, TX, United States, 77027
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Latest news about Landcadia Holdings IV, Inc (LCAHU) common stock and company :
Landcadia Holdings IV, Inc. (Nasdaq: LCAHU) (the "Company") announced today that, commencing on or about May 17, 2021, the holders of the Company's units (the "Units") may elect to separately trade the shares of Class A common stock (the "Common Stock") and warrants (the "Warrants") included in the Units. The Common Stock and Warrants that are separated will trade on The Nasdaq Capital Market ("Nasdaq") under the symbols "LCA" and "LCAHW", respectively. Units that are not separated will continue to trade on Nasdaq under the symbol "LCAHU". No fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. Holders of Units will need to have their brokers contact Continental Stock Transfer & Trust Company, the Company's transfer agent, in order to separate the Units into Common Stock and Warrants.
Landcadia Holdings IV, Inc. (Nasdaq: LCAHU) (the "Company") announced today that it closed its initial public offering of 50,000,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $500,000,000.
Gathering restrictions have hit casinos hard in 2020, including in Atlantic City, where the city's nine casino operators reported a $89 million drop in profits during Q3 2020. According to data from New Jersey gaming regulators, the jurisdiction is embracing online gaming to help offset the tax revenue losses from these land-based casinos. Atlantic City isn't alone in this shift, as several legal gambling districts are looking to online gambling service providers to provide secure, smooth, and fun transitions into the digital area, including from Bragg Gaming Group (TSXV: BRAG) (OTCQX: BRGGF), Boyd Gaming (NYSE: BYD), Landcadia Holdings II (NASDAQ: LCA), Caesars Entertainment (NASDAQ: CZR), and GAN Limited (NASDAQ: GAN).
Landcadia Holdings II, Inc. (the "Company," "we," "us," or "our") (Nasdaq: LCA) today announced that it has completed its previously announced business combination with Golden Nugget Online Gaming, Inc., a leading online gaming and digital sports entertainment company. The business combination was approved by a majority of Landcadia's stockholders.
The capital is raised through shares and warrants, and SPACs typically only have a certain amount of time (usually two years) to buy a company, or they have to return the capital to shareholders. One thing investors in SPACs should keep in mind is that if the SPAC fails to merge with a private company, it will return investors' money, but only the amount that shares were initially offered at.
I’ve been skeptical toward Landcadia Holdings II (NASDAQ:LCA) stock for some time now. Of late, the market has disagreed. Indeed, LCA stock has posted a nice rally since late October. It’s nearly doubled over that stretch, from under $12 to a current price over $23. Source: Stokkete/ShutterStock.com From a distance, there’s some logic to the rally. Landcadia is merging with Golden Nugget Online Gaming (under the ticker GNOG), making LCA a play on what should be a fast-growing iGaming and online sports-betting market. GNOG’s plan to prioritize iGaming over online sports betting makes some sense, too. Profit margins in online gambling are higher, while offerings run 24/7. Sports-betting numbers, in contrast, look impressive now but will slow once the NFL season comes to an end.InvestorPlace - Stock Market News, Stock Advice & Trading Tips But there’s a real question relative to the rally of the last two months: Why? The story here really hasn’t changed much, if at all. The vote on the merger with GNOG has even been delayed, if for largely technical reasons that don’t impact the long-term case. LCA is basically the same stock at $23 that it was at $12. And I didn’t particularly like it at $12. What’s Caused the Rally? The most likely explanation for the rally in LCA stock is that Landcadia simply is in the right place at the right time. 7 Undervalued Stocks That Could Soar in 2021 SPACs (special purpose acquisition companies) like Landcadia Holdings II have been all the rage this year. Many growth companies need to raise capital on certain terms and with significant speed. On both fronts, the SPAC process is a better alternative to the traditional IPO (initial public offering). Meanwhile, investor appetites for post-merger SPACs show no signs of being satiated. Online gambling, too, is hot. Investors have bid up online sports-betting stocks on the belief that the novel coronavirus pandemic will accelerate legalization. States facing a “double whammy” from the pandemic — lower tax revenues and higher spending — will need to plug their budget holes. Online gambling taxes could be a fertile source of revenue. Given those two trends, it’s no surprise that shares of an online gambling SPAC have gained. Concerns Here and Now But is Golden Nugget set to take advantage of these trends? To some extent, yes. That said, I’m not yet sold. Competition is going to be stiff. Existing daily fantasy-sports players already have moved successfully into iGaming in markets like New Jersey and Pennsylvania. (Similar trends have held in Europe.) GNOG has two disadvantages against those rivals, as well as existing land-based casino operators. For one, it doesn’t have the massive player databases competitors do. And in markets where it was a weak (or in Pennsylvania, nonexistent) sports-betting offering, customers have to go to two different apps to play casino games and bet sports. For some consumers using gambling to risk a few dollars and blow off some steam, even a minimally more complex experience is a negative. We’re already seeing competitive factors at work. LCA bulls point out that Golden Nugget has leading market share in New Jersey. That’s true. But GNOG’s share is slipping. Indeed, in November, GNOG lost almost two full percentage points of online casino market share from October. The year-over-year figures are more concerning. In November 2020, GNOG had 29.1% of the market. In November 2019, its share was 39.7%. The Case for LCA Stock Admittedly, bulls probably can dismiss these concerns to at least some extent. For instance, it’s true that GNOG has lost market share of the last year. But thanks to explosive market growth, casino revenue actually rose 37% between November 2019 and November 2020. And New Jersey isn’t the only state that matters for GNOG. Entries into Pennsylvania and Michigan are on the way, with more states likely to follow. It’s not as if the company’s growth is going to come to a halt any time soon. Despite that growth, the stock isn’t particularly expensive relative to peers. Landcadia itself made that point in its merger presentation back in June. Even after the rally, peer comparisons still look positive. Whether it’s based on revenue or forecasted profits, LCA stock is cheaper than most other online gambling plays, and it might be the cheapest depending on an investor’s perspective. The catch, however, is that this isn’t the sector to find the “cheap” play. As I’ve written before, investors should be looking for the best play. Golden Nugget’s early performance in New Jersey suggested it might be the best play or close, but with share eroding and more competition on the way, it’s awfully tough to see it as the biggest winner in the space. If it isn’t, after this rally investors probably should look for the company that will be. On the date of publication, neither Matt McCall nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in the article. Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post The Easy Case for Landcadia Holdings II Stock Isn’t Quite So Easy appeared first on InvestorPlace.
Landcadia Holdings II, Inc. (the "Company") (Nasdaq: LCA), today announced at its special meeting of stockholders that it has received overwhelming support for the Golden Nugget Online Gaming business combination, with over 99% of the shares voted to date voting in favor of the proposed transaction. However, not enough stockholders voted prior to the meeting, and therefore the meeting was adjourned until Tuesday, December 29, 2020 at 12:00 p.m. Eastern time, to allow for more time for stockholders to vote. It is often difficult to get retail stockholders to vote, especially stockholders that no longer own the Company's stock, but are still eligible to vote. The Company reminds all stockholders as of the record date, whether you still own the stock or not, that your vote is important, no matter how many shares you own, and urges its stockholders who have not voted to do so as soon as possible.
Landcadia Holdings II, Inc. (the "Company") (Nasdaq: LCA), a special purpose acquisition company, encourages its stockholders to vote in favor of the approval of the Company's proposed business combination (the "Business Combination") with Golden Nugget Online Gaming, Inc. ("GNOG") and the related proposals to be voted upon at the Company's special meeting in lieu of its 2020 annual meeting of stockholders (the "Special Meeting"). The Special Meeting will be held virtually at https://www.cstproxy.com/landcadiaholdingsii/sm2020, on December 18, 2020, at 10:30 a.m., Eastern time, as described in the Company's definitive proxy statement, dated December 2, 2020 (the "Proxy Statement").
Landcadia Holdings II, Inc. (Nasdaq: LCA) (the "Company"), a special purpose acquisition company, reminds stockholders to vote in favor of the approval of the Company's proposed business combination (the "Business Combination") with Golden Nugget Online Gaming, Inc. ("GNOG") and the related proposals to be voted upon at the Company's special meeting in lieu of its 2020 annual meeting of stockholders (the "Special Meeting"). In light of public health concerns regarding the coronavirus (COVID-19) pandemic, the Special Meeting will be held virtually at https://www.cstproxy.com/landcadiaholdingsii/sm2020, on December 18, 2020, at 10:30 a.m., Eastern time, as described in the Company's definitive proxy statement, dated December 2, 2020 (the "Proxy Statement").
LAS VEGAS, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Everi Digital, a division of Everi Holdings (NYSE: EVRI) (“Everi” or the “Company”), the casino gaming industry’s single source provider of gaming products, financial technology and loyalty solutions, in conjunction with Golden Nugget announced today that a custom game designed by Everi Digital has launched on nj-casino.goldennuggetcasino.com in celebration of the online casino’s seventh anniversary. It is the 777th game showcased for Golden Nugget’s players. “Golden Nugget is one of the largest and most established online casinos in North America and has been a staple of the US online casino industry. They also host the largest online game library,” said David Lucchese, EVP of Sales, Marketing and Digital for Everi. “We are honored to have been selected to design a custom game for this industry leader as part of their seventh anniversary.”Warren Steven, Senior Director, Golden Nugget Online Gaming said, “With the launch of the Golden Nugget Stepper branded game, Everi has been a committed partner and delivered an exceptional game for us to showcase. As we expand on our branded content, we continue to demonstrate the pledge of goldennuggetcasino.com to providing online casino patrons with the best and most diverse online gaming experience.”ABOUT EVERI HOLDINGSEveri (NYSE: EVRI) is a leading supplier of imaginative entertainment and trusted technology solutions for the casino and digital gaming industry. Everi’s mission is to transform the casino floor through innovative gaming, financial technology, and loyalty solutions. With a focus on both land-based and digital gaming operators and players, the Company develops entertaining games and gaming machines, gaming systems and services that facilitate memorable player experiences, and is a preeminent and comprehensive provider of financial products and services that offer convenient and secure financial transactions, self-service player loyalty tools and applications, and intelligence software and other intuitive solutions that improve casino operational efficiencies and fulfill regulatory compliance requirements. Everi provides these products and services in its effort to help make customers more successful. For more information, please visit www.everi.com, which is updated regularly with financial and other information about the Company.ABOUT GOLDEN NUGGET Golden Nugget Online Gaming, Inc. is a leading online gaming company that is owned by a company wholly owned by Tilman J. Fertitta. It is considered a market leader by its peers and was first to bring Live Dealer and Live Casino Floor to the United States online gaming market. GNOG was the recipient of 15 eGaming Review North America Awards, including the coveted “Operator of the Year” award in 2017, 2018, 2019 and 2020.As previously reported, on June 28, 2020, GNOG entered into a purchase agreement with Landcadia Holdings II, Inc. (NASDAQ: LCA) ("Landcadia II"), a special purpose acquisition company, pursuant to which GNOG will become a public company listed on Nasdaq. Landcadia II has filed a definitive proxy statement with the Securities and Exchange Commission (the “SEC”) for the Special Meeting to be held in connection with its Business Combination with GNOG. Landcadia II’s stockholders and other interested persons are advised to read the definitive proxy statement and documents incorporated by reference therein filed in connection with the Business Combination, as these materials contain important information about GNOG, Landcadia II and the Business Combination. The definitive proxy statement and other relevant materials for the Special Meeting were mailed to stockholders of Landcadia II as of the Record Date. Landcadia II’s stockholders may also obtain copies of the definitive proxy statement and other documents filed with the SEC that will be incorporated by reference therein, without charge, at the SEC’s web site at www.sec.gov, or by directing a request to: Landcadia Holdings II, Inc., 1510 West Loop South, Houston, Texas 77027, Attention: General Counsel, (713) 850-1010. Join Everi on Social Media Twitter: https://twitter.com/everi_inc LinkedIn: https://www.linkedin.com/company/everi Facebook: https://www.facebook.com/EveriHoldingsInc/ Instagram: https://www.instagram.com/everi_incContacts: Investor Relations Everi Holdings Inc. William Pfund VP, Investor Relations (702) 676-9513 or email@example.comJCIR Richard Land, James Leahy (212) 835-8500 or firstname.lastname@example.orgMedia Relations Dona Cassese VP of Marketing email@example.com
BALA CYNWYD, PA / ACCESSWIRE / December 7, 2020 / Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Landcadia Holdings II, Inc.
WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Landcadia Holdings II, Inc. ("Landcadia" or the "Company") (NASDAQ: LCA) in connection with the Company's interested-party conflicted acquisition of privately-held online gaming company Golden Nugget Online Gaming, Inc. ("Golden Nugget") via a reverse merger which will result in Golden Nugget becoming a public company trading on the NASDAQ under the ticker symbol "GNOG." Landcadia's Co-Chairman and Chief Executive Officer Tilman Fertitta also owns Golden Nugget, and therefore stands on both sides of the proposed transaction.
Investors keeping tabs on SPAC merger news have had a lot to absorb this week as more companies choose it as a way to go public. Source: Shutterstock.com For those that don’t know, SPAC stands for “special purpose acquisition company.” This is a public company that it created for the sole purpose of merging with another company to take it public. This typically has the merged company adopting the previously-private company’s name and changing its stock ticker. This week’s SPAC merger news has seen a fair few companies choose it as a way to enter the public market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Let’s take a look at all the latest SPAC merger news from this week below: Innoviz SPAC Merger Collective Growth (NASDAQ:CGRO) 11 Things to Know About Potential LiDAR Play CGRO Stock CGRO stock rocketed higher Friday on rumors Collective Growth will take LiDAR company Innoviz Technologies public. Read More Arrival SPAC Merger CIIG Merger (NASDAQ:CIIC) Analyst Call Sends CIIC Stock Soaring CIIC stock is once again climbing higher ahead of the Arrival SPAC merger. This time, credit goes to TV analyst Jim Cramer. Read More Luminar SPAC Merger Luminar (NASDAQ:LAZR) 4 Things to Know About the AV Play LAZR StockShares of Luminar began trading Thursday on Wall Street. Here’s a recap. Read More Stem SPAC Merger Star Peak Energy Transition (NYSE:STPK) Clean Energy Company to Come Public Via STPK Stock STPK stock got a boost on news that it will take clean energy company Stem public. Read More GNOG SPAC Merger Landcadia Holdings (NASDAQ:LCA) LCA Stock: Landcadia Shares Surge on GNOG SPAC Merger Update Landcadia Holdings progressing with its SPAC merger plans with Golden Nugget Online via a shareholder vote. Read More Pershing Square SPAC Pershing Square Tontine Holdings (NYSE:PSTH) PSTH Stock: 13 Things to Know About Bill Ackman’s Pershing Square SPAC Bill Ackman’s SPAC caught the interest of investors earlier this week even though it’s not set to combine with another company. Read More View SPAC Merger CF Finance Acquisition (NASDAQ:CFII) 13 Things to Know About the CFII SPAC Merger The dynamic glass company is set to go public in Q1 2021 in a merger that values it at $1.6 billion. Read More QuantumScape SPAC Merger QuantumScape (NYSE:QS) 9 Things to Know About EV Battery Play QS Stock QuantumScape completed its merger with Kensington Capital earlier this week. Read More Lion Electric SPAC Merger Northern Genesis Acquisition (NYSE:NGA) 7 Things to Know About EV Play LEV Stock The deal values Lion Electric at $1.9 billion and will have it joining the New York Stock Exchange. Read More On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Top SPAC Merger News This Week: Innoviz, Arrival, Luminar, View, QuantumScape, Stem and More appeared first on InvestorPlace.
Landcadia Holdings (NASDAQ:LCA) is one of the numerous special purpose acquisition companies (SPACs) that have gone public this year. LCA stock has so far been one of the more successful ones, as its shares have now doubled from the original price. Source: Stokkete/ShutterStock.com In fact, it’s been a banner year for SPACs, as traders have gravitated to firms that go public while eschewing the traditional initial public offering (IPO). However, this party could have come to an abrupt end. Due to specifics around Landcadia’s planned merger with Golden Nugget, it was possible that the deal could fall through. Fortunately for shareholders, Landcadia overcame this obstacle.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Now, with that out of the way, shares are soaring again. So, what happened, and what do things look like going forward? Casino Rules One particular quirk for this SPAC deal is that it involves casino gaming. Because gaming is closely regulated, many states have specific agencies set to oversee and monitor the competitive environment. In the case of New Jersey, it has the Casino Control Commission for handling these sorts of matters. 7 Growth Stocks Flying Under the Radar The Casino Control Commission had to approve the transfer of Golden Nugget’s license away from the existing gaming company to the new Landcadia/Golden Nugget Online Gaming vehicle. If the Casino Control Commission had found anything troublesome about Landcadia’s request, it could have killed the whole deal. Without a license, a gaming company isn’t going anywhere. Fortunately, Landcadia had its paperwork in order and the Casino Control Commission came through with the approval. Landcadia put out an official press release thanking New Jersey for its accommodating stance toward the proposed merger. Impact of the Decision You could see how much traders were focused on this ruling by the trading action in LCA stock this past Wednesday as the decision was being made. Shares initially opened higher and were around $18. Then, however, the regulatory body took a recess prior to announcing its decision. On social media, folks began to speculate about what was happening. LCA stock quickly dropped $2 per share on massive trading volume. As soon as the ruling came in positively, however, the stock rebounded to $18. And as the approval further spread around the news wires, LCA stock surged even more during the next trading day. All in all, Landcadia jumped 20% from the lows as traders reacted to the legal decision. So make no mistake, this was a big deal. It’s unclear what would have happened to the merger without this approval, but now, that’s not something that anyone needs to worry about. LCA Stock Verdict So what’s next for Landcadia? Originally, we’d been looking at the Landcadia merger closing with Golden Nugget Online Gaming by the end of November. However, this timeline may be pushed back a bit, as this ruling was needed before shareholders could approve the merger and make it official. Next up, according to Landcadia’s general counsel, is receiving approval from the Securities and Exchange Commission (SEC). “We are now waiting on the SEC to approve our definitive proxy statement for mailing to our stockholders and approval from our stockholders of the transaction, which we hope will happen in the near future,” the counsel said. Still, with this regulatory issue now taken care of, the merger by all accounts should be able to close fairly quickly, and set the stage for a run in 2021. Remember how DraftKings (NASDAQ:DKNG) went from the teens to as high as $60 once its SPAC merger officially closed? LCA stock is unlikely to run up quite that far, as Golden Nugget is still a more geographically-limited business than DraftKings at this point. However, you could get a somewhat similar sort of effect once the deal is official and hot money starts to come into the trade. I previously made the argument for LCA stock being a worthwhile investment in the gaming industry. As the official Golden Nugget Online Gaming merger comes ever closer to completion, the bull case is getting stronger. As such, LCA stock should have further upside. On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Landcadia Scores a Big Legal Win as Merger Approaches appeared first on InvestorPlace.
The company announced it will put its major corporate move to a vote by shareholders in mid-December.
Landcadia Holdings II, Inc. ("Landcadia II" or the "Company") (Nasdaq: LCA) announced today that it has scheduled the special meeting in lieu of the 2020 annual meeting of its stockholders (the "Special Meeting") for December 18, 2020 at 10:30 a.m., Eastern time, to, among other things, approve the proposed business combination (the "Business Combination") between Landcadia II and Golden Nugget Online Gaming, LLC ("GNOG"). The Company also announced that it has filed its definitive proxy statement for the Special Meeting and has commenced mailing the definitive proxy statement to its stockholders of record as of October 29, 2020, the record date for the Special Meeting (the "Record Date"). The closing of the Business Combination is subject to approval by Landcadia II's stockholders and the satisfaction of other customary closing conditions and is expected to close as soon as practicable following the Special Meeting.
BALA CYNWYD, PA / ACCESSWIRE / November 30, 2020 / Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Landcadia Holdings II, Inc.
Landcadia Holdings II, Inc. (Nasdaq: LCA)("Landcadia II") announced today that regulatory approval has been obtained from the New Jersey Casino Control Commission to acquire Golden Nugget Online Gaming, Inc. ("GNOG").
Gambling stocks have been on fire since March’s novel coronavirus crash. When the pandemic first hit, investors feared the worst for the gaming sector. But, with social distancing having less impact than expected — along with the continued sports-betting megatrend — names in this industry made a tremendous recovery. However, as Covid-19 cases begin to surge once again, will gaming stocks give up some of their luck? Or, with the possibility of a vaccine just around the corner, does this winning sector still have room to run? All bets are off. Although a vaccine could help put the pandemic in the rearview mirror, these next few months could bring a second round of lockdowns that hurt this industry significantly.InvestorPlace - Stock Market News, Stock Advice & Trading Tips That being said, there may still be an opportunity here. Investors can buy online-based names in anticipation of more lockdowns, or snatch up the land-based names as their share prices potentially pull back in the near-term. 10 Best Stocks to Buy for Investors Under 30 So, which gambling stocks should you consider? Keep these names on your watchlist: Caesars Entertainment (NASDAQ:CZR) DraftKings (NASDAQ:DKNG) Landcadia Holdings II (NASDAQ:LCA) Las Vegas Sands (NYSE:LVS) MGM Resorts (NYSE:MGM) Gambling Stocks to Buy: Caesars Entertainment (CZR) Source: Jason Patrick Ross/Shutterstock.com First on my list of gambling stocks is the new Caesars Entertainment. As InvestorPlace contributor Vince Martin noted on Nov. 6, this company is the post-merge name after Eldorado Resorts acquired the gambling giant earlier this year. While that deal may have looked ill-timed in hindsight, it could still pay off for investors. Given that the company took on significant debt to acquire its larger rival — thanks to the high leverage — an ounce of improvement could put a lot of points into CZR stock in the coming years. Sure, with Nevada responding to the outbreak surge by reducing capacity in casinos down to 25%, investors could also be in for another bumpy ride. But a return to normal for land-based casinos isn’t the only catalyst for CZR stock. If its pending deal to buy William Hill (OTCMKTS:WIMHY) closes, this company could quickly catch up to its rivals like MGM and Penn National (NASDAQ:PENN). So, what’s the call? After bouncing back close to its pre-pandemic price levels, we could see Caesars sell off once again. But — given the factors in its favor — you should consider any weakness as a buying opportunity. DraftKings (DKNG) Source: Lori Butcher / Shutterstock.com Profitability may be years away for DraftKings, my next pick of the gambling stocks. What’s more, at today’s valuation, much of its potential is already priced into the shares. However, there may still be a bull case for investing in DKNG stock at today’s price of around $48. Why should you consider buying DraftKings now? Firstly, because of the continued sports-betting legalization wave. As more states legalize online sportsbooks, this first mover in the industry is poised to gain significant market share in the coming years. Of course, the company’s first mover status doesn’t guarantee its domination in the industry. Not only does DraftKings face competition from land-based casinos, it’s also competing against global wagering giants like Flutter Entertainment (OTCMKTS:PDYPY) and Pointsbet Holdings (OTCMKTS:PBTHF). But while DraftKings is far from the only game in town, it doesn’t have to crush the competition in order to crush it in the growth department. As seen in the company’s recent earnings report, DKNG continues to exceed Wall Street expectations. 7 Value Stocks That May Come Back into Style After the Pandemic Bottom line? At first glance, it may look like shares have gotten ahead of themselves, but this stock could continue climbing both in the near- and long-term. Landcadia Holdings II (LCA) Source: Stokkete/ShutterStock.com In recent weeks, investors have had mixed feelings about this special acquisition company (SPAC). Lancadia is set to complete its deal with Golden Nugget Online Gaming (owned by Fertitta Entertainment) soon. And, while’s there’s a bull case to be made, it’s understandable why some are concerned this iGaming play will fail to live up to expectations. Sure, it’s questionable whether this company — which has done well in the New Jersey market — can find the same levels of success in other states. On top of that, the suspected motivations behind the deal are also reason for concern with LCA stock. If billionaire Tilman Fertitta — the principal on both sides of the deal — is looking to cash out, do you really want to be buying in? Nevertheless, risk-return is fully in your favor here, with today’s prices at around $16 per share. Yes, the shares are richly priced and could crash if speculation in online gambling stocks subsides. But — even if this company winds up with just a sliver of the market — that could be enough to send shares materially above where they are today. Keep in mind, this is a high-risk, high-potential return opportunity. In other words, don’t bet the ranch. But with the potential to soar in the near future, consider it a cautious buy at current price levels. Las Vegas Sands (LVS) Source: Andy Borysowski / Shutterstock.com With most of its operations based in Macau, Las Vegas Sands was one of the first gambling stocks hit badly by the pandemic. However — with signs that the Chinese gaming market is starting to recover — there may be a great opportunity in this casino operator that has its fortunes largely tied to Asia. Why? While both are diversified geographically, Caesars and MGM are still heavily bound to the health of Las Vegas. But Las Vegas Sands? Don’t let the name fool you — Vegas only made up less than 15% of its revenue in 2019. As such, LVS stock was and is primarily a play on the health of Asia’s gambling sector. Sure, a Macau recovery is still a work-in-progress. But with China avoiding a second wave, gaming in that part of the world could continue to recover. On the other hand, in-person casinos in the United States are stumbling again as stringent lockdown and social distancing orders come back into effect. 7 Cybersecurity Stocks To Buy For Defense Against The Dark Web What does this mean for LVS stock? Shares — which trade for at almost $57 today — could continue to climb back towards their pre-pandemic prices above $70. Tread carefully, but this name remains a buy after recovering more than 70% off its March lows. MGM Resorts (MGM) Source: Michael Neil Thomas / Shutterstock.com With Nevada cutting casino capacity on the heels of surging Covid-19 cases, now may not look like the time to dive into Vegas-centric casino names like MGM stock. However — while the upcoming winter could mean more tough times — any big selloff in the near-term may give you a solid entry point for a long-term position. Why buy if shares take a dive? Shares may have prematurely rallied on the positive vaccine news earlier this month. But, while it may be a few months until the vaccine is readily available, the stock will likely bounce back as investors look to a full recovery in 2021. Additionally, this land-based casino operator gives you solid exposure to the online gaming megatrend. The performance of BetMGM — the company’s online gambling joint venture with GVC Holdings (OTCMKTS:GMVHF) — has handily beat expectations. Granted, this unit isn’t large enough yet to counter any near-term declines in MGM’s brick-and-mortar properties. But it could minimize how much this stock falls if the pandemic worsens during the winter. Just a few dollars below its pre-pandemic prices, shares may not be a screaming buy right now at around $28. However, investors should consider this pick of the gambling stocks as a solid opportunity for future gains. In short, keep an eye out for any big pullback. On the date of publication, Thomas Niel did not (either directly or indirectly) hold any positions in the securities mentioned in this article. Thomas Niel, a contributor to InvestorPlace, has written single stock analysis since 2016. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Place Your Bets on Black with These 5 Gambling Stocks appeared first on InvestorPlace.
Landcadia Holdings II (NASDAQ:LCA) now expects to close its merger with Golden Nugget Online Gaming by the end of November. This news will be a catalyst for LCA stock, which will start trading under the symbol “GNOG” after the merger is completed. Source: Stokkete/ShutterStock.com This new timeline was announced by Landcadia and Golden Nugget on Nov. 5 in an SEC filing. In the filing, the company also said it had won two online-gaming industry awards Moreover, Golden Nugget Online Gaming said that its gross gaming revenue had jumped 72% in the first nine months of 2020. And it said that it had taken in over $2 billion of bets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Outlook for Golden Nugget Online Gaming If Golden Nugget continues to post those kinds of results, LCA stock is going to be a huge success once its merger closes, as it will receive additional funds through the deal. The firm will become only the second, pure publicly traded online casino company in the U.S. DraftKings (NASDAQ:DKNG) is the other. 7 Telehealth Stocks To Buy Ahead Of Flu Season And when the merger was announced on June 29, Landcadia had $321 million of funds that will be transferred to Golden Nugget after the merge. Golden Nugget will likely be able to use those funds to pay down some of its debt. In addition, it will launch online gaming in other states, starting with Michigan. Moreover, the company recently reported that its online net revenue had jumped 92% year-over-year and 4% versus Q2 to $25.9 million. Further, its operating income jumped 92% YOY to $8.2 million. However, its Q3 operating income fell by $300,000 versus Q2. The Outlook of LCA Stock As I suggested in my last article, Golden Nugget will likely do quite well after its merger closes at the end of November. DraftKings’ stock doubled from the time when its merger with a SPAC was announced until it closed. However, as I pointed out in my Sept. article, Golden Nugget Online has been much more profitable than DraftKings. I also reported last month that Golden Nugget Online had disclosed an interesting issue that may have delayed the closing of the merger. Specifically, there were some last-minute negotiations between Landcadia and Golden Nugget’s owner, Tilman J. Fertitta, who will be the controlling shareholder of the merged company. An amendment was made to the purchase agreement to limit Fertitta’s control over the combined company. That restriction would be implemented only if he and the entities he controls end up having less than a 30% stake in the company. This change is good for shareholders because it protects them from a scenario in which Fertitta reduces his stake and yet can still control the board. It also indicates that Landcadia believes that LCA stock could shoot up after the merger, making selling his stock attractive. They foresaw this scenario developing with a bad outcome. In effect, this is a bullish sign for the stock. What To Do With LCA Stock So far there are no forecasts for LCA stock, nor GNOG since it is not trading under that symbol yet. So, I would suspect that on Nov. 30 or shortly thereafter some sell-side analysts will produce their forecasts. As I have above, however, I suspect that the stock will continue to do quite well. One way to take advantage of this is to buy the in-the-money warrants for LCA stock. Those trade under the symbol LCAHW (with NASDAQ). They are currently trading around $3.96 per warrant. I wrote an extensive gallery article which explains how in-the-money warrants work for SPAC stocks. The exercise price is $11.50 per warrant. Therefore, when LCA stock trades at $13.60, they are in-the-money (i.e., the intrinsic value) by $2.10 (i.e., $13.60 minus $11.50). The extra $1.86 per warrant that is above the intrinsic value is what you pay to own the warrant over the 5-year exercise period. However, there is a problem, as described in my article. Any warrant for an underlying SPAC merger stock which trades above $18 will likely get called by the company. The company could subsequently buy back the warrant for 1 cent. The bottom line is that it is usually better to buy these in-the-money warrants prior to the merger closing. This is because the extra amount you pay over the intrinsic value will evaporate if and when the stock rises after the merger closes. The bottom line is that I suspect that this stock will do extremely well over the next year. On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Mark Hake runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Golden Nugget Online Could Jump When Its Merger Closes with Landcadia appeared first on InvestorPlace.
Landcadia Holdings IV, Inc (LCAHU) is a NASDAQ Common Stock listed in Common Stock