$SKLZ - Red Flags

I am a $SKLZ S/H - I fell in love with the concept of the company:

- Turning simple games into gambling, while avoiding gambling laws

I admit, I did not do full DD on the company

Someone care to talk me off the metaphorical ledge of selling?

Thread 👇 1. Sales & Marketing (S&M) Costs Vs Revenue

S&M % of Rev:

- 2020: 109%
- 2019: 93%
- 2018: 102%

$SKLZ is spending more on S&M than total Revenue (% getting worse)

I am not opposed to companies heavily investing in S&M to grow Rev but its the correlation that concerns me.

$BRAG Q4 Earnings:

1. Revenue:
- 2020 YE: €46.4m (⬆️75% YoY)

2. EBITDA (ADJ):
- 2020 YE: €5.5m (⬆️432% YoY 😍)

3. Richard Carter to become CEO on 1 May (Ex SBTech CEO who merged w/ $DKNG

$BRAG now 4% position, bough more last week

Thesis 👇

https://twitter.com/MyBrokeInvestor/status/1366877252227588106

Business Highlights:

1. New B2B Operators - Launched:

- 54 in 2020
- 21 Q4 alone (out of total 119)

High start up costs, high FCF once launched

2. Revenue Diversification - Top 10 Customers:

- 2020: 58%
- 2019: 72%

Great to see less dependance on top customers

$TRMR - I recently opened a 5% position (my largest ever opening position)

Investment Thesis:

- Rapid Growth (Q4 2020 - 72%)
- Serverely undervalued to peers
- Rapidly expanding TAM
- Growing Industry (digital ads)
- Potential US Listing
- FCF positive
- Profitable

Thread👇 Digital Ads Overview:

- Auctions occur where "ad space" is available

- When a company has vacant ad space (i.e. their web page), an SSP will help sell that space to advertisers.

Conversely, where a company is looking to buy that ad space, a DSP would help advertisers find it

$FUBO - the most hated/loved company on #Fintwit

I have a position & given the very relevant bear arguments, I have reaffirmed why I invested in the company.

I believe that this company is a "Story" Stock & to invest, you need to believe in the story

THREAD Story Stock - what is it?

- Visionary CEO
- Youthful Company (Major execution risk)
- Poor Current Business Model
- #Fintwit Arguments
- Great Brand
- Great but unproven future prospects
- High Short Interest
- A List Investor Base