Summary
- DraftKings aims to cash in on the millions of people who love sports and love to gamble.
- The company is the leader in the burgeoning daily fantasy sports betting industry.
- DKNG went public in April, I bought some in June, and my bet has been fortuitous so far.
- Is it time to take profits, or should I just let it ride?
DraftKings (DKNG) has yet to make a penny of profit off of sports-lovers' gambling fantasies. Bets on the company's stock, on the other hand, have paid off handsomely.
Here is an image of my executed buy order of June 26, about two months after DKNG went public:
Obviously, I'm delighted with what has transpired over the ensuing 3 months, as DraftKings has been by far the best performer in my 32-company portfolio during this span.
It has crushed even the likes of Apple (AAPL), which had been one of the hottest stocks of 2020, and it has a 6-fold advantage on the overall market.
Data by YChartsI will be discussing my investing thesis on DKNG, but only briefly. After all, anybody can tout any stock, Seeking Alpha already has published numerous writeups on the company, and each of us should conduct his or her own due diligence before buying anything.
Personally, I'm more interested in dealing with this question: What do I do now with a volatile stock that has given me a 60% gain in 3 months' time?
Do I say, "Thank you very much," take my profits and put them to work in my more comfortable Dividend Growth Investing world? Do I stick with DKNG and see how far it can take me? Do I trim some shares and keep some?
