Esports Mogul Asia Pacific Limited

A Quick Look at ESH’s Quarterly Cash Flows: Esports Mogul Asia Pacific Limited (ASX: ESH) recently released its quarterly report which ended on September 30, 2018. In the September 2018 quarter, the company’s net cash used in the operating activities amounted to $1.45 million and the company has made payments for the advertising and marketing purposes which amounted to $0.9 million. However, it has also incurred expenses related to the staff costs as well as administration and corporate costs.

ESH’s Operating Activities (Source: Company Reports)

Esports Mogul saw net cash used towards the investing activities amounting to $0.14 million in the September 2018 quarter.Largely, the company has made payments to acquire intellectual property. With regards to the financing activities, the company has witnessed net cash outflows amounting to $0.005 million in the September quarter on the back of the transaction costs which were associated with the share issues, convertible notes or options.

Esports to Organise Online Tournaments for ONE eSports: On November 8, 2018, Esports Mogul has made an announcement that it would be staging and organising online esports tournaments for ONE eSports. Together, Razer Inc. (Esports Mogul partner), Singtel as well as other players, have entered into the memoranda of understanding which focuses on leading ONE eSports. However, Esports Mogul would stage as well as organise online tournaments. The management of Esports Mogul has reflected the positive outlook on this.  
 
What Investors Could Expect from Esports Mogul: In August, Esports Mogul has initiated the development of Mogul Android App. The company also stated that the technology team has leveraged the React Native framework in order to develop the application and would be comprising of two releases. The Version 1, which is already in the quality assurance testing, would be helping in enhancing the existing platform. The second version would be having additional features for the users of smartphones.

Further, the management of the company is expected to continue with its robust momentum and it plans to increase the user acquisition activities.

Stock Analysis from Technical Standpoint: Moving Average Convergence Divergence or MACD indicator has been applied on the daily chart of Esports Mogul by using the default values. As per the observation, MACD line has just crossed the signal line and not much bullish momentum has been witnessed. Therefore, the market players can have a wait and watch view on the stock that traded at the market price of A$0.025 (up 4.2% on November 13, 2018).
 

SportsHero Limited

SHO’s September Quarter Aided by Walletku partnership: SportsHero Limited (ASX: SHO) has released its quarterly report for September 2018 quarter in which it has highlighted the partnership with Walletku. As a result of the partnership, SHO rolled out Indonesian 2018 World Cup campaign. With the help of this campaign, the company managed to demonstrate its “proof of concept” because the company recorded more than 160,000 ticket sales. That is to say, it has garnered gross revenues amounting to $157,000 within the span of four-week World Cup competition.

SHO partnership (Source: Company Reports)

Because of the successful World Cup campaign, the company has managed to enter into a partnership with LaLiga. As a result of this partnership, SportsHero now has full LaLiga IP rights as well as support. SportsHero recorded net cash of $0.76 million which was used in the operating activities in the September 2018 quarter.


SHO’s Operating Activities (Source: Company Reports) 

Optimistic Outlook on Another Partnership: SportsHero has also entered into a partnership with e-pay, which is the retail payment network having operations in Malaysia. As a result of this partnership, SportsHero would also be entering into the community of Malaysia filled with the sports fans. The management of SportsHero reflected favourable views on the partnership. They stated that e-pay has robust profile in ASEAN region which could help SHO to rapidly grow the userbase moving forward.

Stock Analysis: Two technical indicators, Moving Average Convergence Divergence or MACD and Relative Strength Index or RSI, have been used on the daily chart of SportsHero and default values have been used. As per the observation, MACD line has just crossed the signal line and is moving upwards. Therefore, we maintain our “Speculative buy” rating on the stock at the current market price of A$0.145.
 
 

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