IMF_Trading

$DKNG - A lot of running with no sports on

NASDAQ:DKNG   DraftKings Inc.
$DKNG

Lot of people ready to gamble without any sports going on. Again, this market never makes a lot of sense so this one is going to be fun to watch.

Right now, I am seeing the price float around $37.38. However, I think it would be very easy to see the stock take a dip back around the 31.65 level (seen on the right hand side)

There is a few things to consider when buying this stock:

1. How big will the competition between them, fanduel and penn national with the barstool.
2. The motley fool article about how $DKNG is facing a serious cash burn problem.

www.fool.com/investi...-like-the-plagu.aspx

3. If they are facing a big cash burn problem, nothing is stopping them from doing a secondary offering to keep themselves afloat until sports come back and we an gamble again.

From my point of view, we would be buying at a heavy premium here and I would expect to see it drop a few dollars before it has a real chance.

From a technical standpoint, it it breaks the channel upwards Ill be looking @ $42 to sell out.


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