Added to YB: 2024-05-10
Pitch date: 2024-05-02
BET.V [bearish]
NorthStar Gaming Holdings Inc.
+73.33%
current return
Author Info
Wolf of Oakville takes a magnifying glass to Canadian small cap stocks. Sign up for the newsletter.
Company Info
NorthStar Gaming Holdings Inc., through its subsidiaries, engages in sports betting and online casino gaming business in Canada.
Market Cap
CAD 8.2M
Pitch Price
CAD 0.07
Price Target
N/A
Dividend
N/A
EV/EBITDA
-1.11
P/E
-0.34
EV/Sales
0.91
Sector
Hotels, Restaurants and Leisure
Category
N/A
Northstar Gaming $BET.V (0.5/5)
NorthStar Gaming (BET.V) faces severe challenges as a Canadian nanocap in the tough online gambling space. Despite 237% revenue growth to $19.4M & gross margin expansion to 37%, heavy marketing ($14.1M) & G&A ($11.3M) spend led to a staggering $25.5M net loss in 2023. Cash burn of $18.5M ($6.2M in Q4 alone) leaves just $3.9M cash on hand. 83% shareholder dilution & further raises needed to survive. Spending $2 in marketing per $1 gross margin, breakeven would require $69M revenue with no extra costs - nearly impossible. Despite $14M MC, financials are dire & outlook bleak.
Read full article (3 min)