Hi Josh,
Brag Gaming is one of those momentum stocks that is seeing considerable activity. Why? It operates in the online betting space and with legalization ramping up in the U.S. and legislation tabled on the floor in Canada, there is a lot of excitement over the industry potential. BRAG is already in the game and recently signed a deal with ORYX Gaming's and online sports betting and casino operator Betway —which is licensed for business in the UK, Malta , Italy , Denmark , Spain , Belgium , Germany , and Ireland .
Betway will use ORYX's player engagement tools, including free spins, tournaments, and leaderboards, as well as data services available via ORYX Hub. It has other deals in Europe as well. The company is growing at a pretty decent clip and expects to exit 2020 with 62% revenue growth. It expects to generate $76M in 2021 which would only represent 13.4% increase over 2020 - so although revenue is growing it is anticipated to do so at a slower rate. It is trading at 4.16 times sales which isn't that bad considering the company's recent run up in price.
Paying 4 times sales for a company that is growing at a double-digit clip and that operates in an industry that is also seeing exponential growth isn't outrageous.
The uplist to the TSX is likely to be a positive for the company as it will be eligible for including in different indices, and should increase volume. That being said, expectations become higher and if it disappoints it is likely to be more volatile.
Mta