This Sports Betting Company Could Collapse 50%

Optimism toward a sale looks misguided

Highlights:

• Shares of this online gambling business have gained 76% since mid-January. The catalyst is a report the company is looking to sell itself.

• But the pool of buyers is exceptionally thin, and the nature of the business suggests minimal synergies.

• Even in a best-case scenario, shares have built in much of the potential premium.

• If a sale doesn’t materialize, the bull case collapses, leading to 50%-plus potential downside.