After Dave Portnoy went live On February 12, to discuss his most recent negotiations, there was speculation about the company in which he claims to have invested $ 2.7 million.
The founder of Barstool Sports gave several clues, however, which indicate that he has acquired a large stake in Canadian online gambling company Score Media and Gaming Inc. (OTC: TSCRF) (TSX: SCR).
What happened: Answering questions on live video on Friday, Portnoy – after spilling coffee on his laptop – first refused to reveal his most recent stock pick.
“What did I buy yesterday? I bought a stock that looks cheap. I won’t say what it is because I don’t know if I can and I don’t want to change the price. I’m stuck in it and I’ve been keeping it for six months to a year. I think it’s a quadruple packer, ”he said in response to a viewer’s question.
He went on to say that the company was “in its space” and that it was a company he likes.
Portnoy is an avid investor in the electronic sports industry and owns Barstool Sports, a company in which Penn National Gaming Inc. (NASDAQ: PENN) has a 36% stake.
That was not all he said.
Later in the video, Portnoy, apparently irritated, gave in even more to one of his fans and revealed two more clues.
“Fine! Rhymes with ‘the door’, that’s all I’m saying. And I had to figure out how to buy it because it’s not American.”
Score Media, often referred to as “The Score”, fits the description that is in the sports space, is not American and rhymes perfectly with ‘the door’.
Why it matters: Portnoy said he would update his followers “when (he) finishes” because he doesn’t want to have any problems with the SEC, but after Portnoy shared the clues on the air, Score Media’s shares rose 9% at noon. Portnoy is not the only catalyst that the company has in its favor, however.
What is the next: On Wednesday, the Canadian Parliament is expected to vote on bill C13.
With all three major Canadian opposition parties supporting the project, which is the next step in making sports betting unique and iGaming entirely legal in the country, the project is expected to pass.
What else: On February 10, Score Media announced a proposal to consolidate shares in preparation for uplisting on a major US stock exchange.
On February 11, Score Gaming announced that a 10-1 reverse split had occurred and the shares would begin trading on a post-consolidated basis on February 18.
With this consolidation of shares, Score Media significantly reduced the size of its float. Prior to consolidation, Score Gaming had 434.4 million Class A shares outstanding, which will be reduced to just 43.4 million after the split.
With these big catalysts on the horizon, Score Gaming may experience increased buying pressure as it nears its goal of listing on the NASDAQ or NYSE and competing against companies like Penn National DraftKings Inc. (NASDAQ: DKNG).
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