I wanted to get this idea published before the scheduled news event happening on February 6th , a few hours from now, as I believe that Astralis Group is preparing for a liftoff on an unprecedented scale.
It most likely won't happen in the next few hours, but I wanted to get this analysis published before this event - for a cleaner before & after chart.
The reasons to buy Astralis Group is many, and I will be using this thread to dissect their business model, and give you some concrete reasons why the growth potential in this company is widely underestimated.
If you are a tentative buyer, and prefer having a proper analysis in hand before making a decision, this thread should help give you an understanding of the company's strategy, and what makes up the company value.
Please note that the CEO has previously stated in their prospect that they don't expect to pay out Dividends on the shares for the first couple of years. This is something to keep in mind, as we look for more buying opportunities.
While keeping that in mind, I want to note that the current per share value is rather low, and the total shares in circulation is at 56.759.777 total shares.
For now, I am issuing a buy and hold signal. This is not likely to change for the foreseeable future.
Tomorrow (feb 7th 2020) Astralis will be playing in the BLAST series tournament. It's a Best of 3 knockout style I believe. If they win the first one, they advance to the next etc. The match is streamed live on Twitch and Youtube I believe. As an investor, investing into an E-sports group, getting a visual on your athletes in action is a must.
Being former world champions and top class athletes, I have no doubt in Astralis' ability to give the competition a fight they'll never forget.
This subject gives us a good place to start off with our Astralis income stream breakdown; The tournaments their teams participate in:
For League of Legends, the team Origen has purchased what would be considered a Franchise sport in the tournament leagues. These are rather costly and make up a large part of Astralis Groups current expenses. These payments are paid in installments and the financing for these is secured.
In return for this rather big expense, the team Origen is allowed to participate in the League of Legends tournaments, and they receive royalties from some activities. Team-specific in-game items are mainly split between Riot Games and the teams, whereas Riot Games and the other franchise holders split the earnings from ticket sales and other revenues.
The details of these agreements are mainly confidential, so please take this with a grain of salt. There's no way, without insider knowledge in the industry to know for sure how these agreements are chiseled out. What we know for a fact through the Prospect that Astralis group released, is that there are a mix of agreements involved in these tournament positions.
The tournament prizes usually don't carry much weight from an investor standpoint, as this is used as incentive for the athletes and usually mostly awarded to the players.
This means that we have our first major indicator on the health of Astralis Group - The growth and revenue of the League of Legends brand, especially surrounding their E-sports activities and team-specific merchandise exposures.