 Welcome traders to another tickmail earnings report preview with me Patrick Monday before we jump into today's report As always want to adhere to the risk disclaimer Most pertinent today's presentation is the fact that the views expressed by me today are solely mine They're not indicative or representative of those held by technical UK or tickmail Europe limited Okay, let's jump into today's report. We are looking at draft Kings draft Kings are set to announce earnings before the open of New York trade today looking for an EPS of 87 cents there under the share on revenue of 424.42 billion I would Highlights that there is a whisper number on the street that the EPS could come in as high as 95 cents So that's something to bear in mind We have had a positive development in the sports betting sector in general as investors Ju-star the Massachusetts led just later Passed a bill to authorize retail and online sports wagering on professional and collegiate sports The governor is expected to sign the bill the house and senate has been going back and forth on the issue of college sports betting Before compromising to allow college betting but not on in-state schools Unless they're playing in a major tournament like March Madness The massachusetts tax rate will be 15 percent for wages placed in person at a retail betting location and 20 percent for online Bets the taxes will be paid by the sports betting operators and not the better themselves the tax rates are significantly lower Than those in some other states on the east coast and so Boston based draft Kings Is an obvious beneficiary of sports betting being legal in its home state JP Morgan analysts launched coverage on draft Kings with a market outperform rating The firm expects draft Kings to see a positive re-rating as the company nears profitability JP Morgan view draft Kings as a high high investment in daily fantasy sports products in the years leading up to This legislation positioned the company to successfully Cross-sell its database into online sports betting management that has proven its ability to gain market access in legal states with The industry leading us population exposure as a result JP Morgan see draft Kings growing revenue at 19 percent year over year through to 2030 while JP Morgan believe they're in the early innings of an online gaming sector Which they believe draft Kings can maintain a top share in north america online Gaming driven through cross-selling and its superior technology capabilities in the sports betting Technology sector leading to high levels of profitable growth Looking ahead JP Morgan thinks draft Kings leverage its platform as an acquisition vehicle to cross-sell into higher margin products They have assigned a price target of 25 dollars to draft Kings based on blend of four times the 2025 to 20 27 sales estimates and 12 times 20 27 ebit Estimates draft Kings is noted to be currently trading at 1.6 times Its sales book down from its historical average of 10 times book The price target set by JP Morgan implies more than 80 percent upside for its shares So let's look at some statistical trading patterns around the draft Kings earnings release draft Kings shares have moved lower in the immediate after half of earnings Five out of nine previous reports on average stop move down two percent in the first day after Releasing earnings based on the previous nine earnings releases draft Kings more like trade hire one day after earnings from average gain at 0.4 percent on average the stock has moved 2.9 percent one week after earnings In terms of the implied volatility the options market is pricing in a potential 10.5 percent move on earnings And the stock has averaged in general 8.2 percent move in recent quarters It's from a flow and sentiment perspective that's been notable buying 1,624 contracts of the bullish $18 core expiring today Option order flow sentiment in general has actually also been polished investor sentiment going into the earnings has 62 Looking for an earnings beat draft finish shares have drifted 24.8 post its prior earnings Advancements using the last 12 courses of dates the average drift between earnings announcement is 1.3 percent Let's pull up draft Kings chart and see where we are from a technical perspective Where the trading opportunities might be for us. So we can see here that draft Kings Let's trade it down Into this 13 dollar area the high volume node on the weekly chart And we have consolidated there and we have recently broken out of on the daily timeframe A ascending triangle. So I'm looking now any pullbacks into that prior Resistance now to act as support just below the 15 dollar level. I like to be a buyer there or on a breakthrough the 17 1750 level and I think we can grind it out here to that $25 target that JP Morgan have certainly achievable beyond there If we can maintain support into that 1750 level, I'd actually be looking for a 33 3380 as my upside objective for draft Kings in In coming months based upon this last leg of corrective upside that we saw and that's that gives us that symmetry swing target So 3380 will be the upside objective. Again, that's not going to be happening In the near term, but this is one that I think is a slow burner and certainly one that I I'd like to build a long-term position in as always traders plan the trade trade the plan the most importantly Manage your risk until next time. Thanks very much