I'm All In On Evolution AB: Stock Price May Shoot Up Following U.S. Expansion

2025-04-02 06:05:12 ET

Summary

• I invest in outstanding companies at reasonable prices and hold them long term; Evolution AB meets all my criteria, making it a significant portfolio position.
• EVGGF dominates the live casino market with high profit margins, net cash, growing dividends, and a low P/E Ratio, indicating limited downside risk.
• The stock price is falling due to being a Swedish company in a controversial market, cyberattacks in Asia, and issues with UK authorities, but these are not long-term problems.
• Growth catalysts include the shift to online casinos, potential U.S. market expansion, and new game releases, making Evolution AB stock a strong buy with significant upside potential.

Intro

My investment process is to buy outstanding companies at a reasonable price and then hold them in my portfolio for years, if not decades. However, the stock market is unpredictable, so when I buy a company, I never go all in right away. Typically, I consider 3-4 decreasing price entries, and with Evolution AB ( EVVTY ) I have just reached the last threshold. I invested everything I wanted to invest, and I am satisfied that I created such a large position. I will hardly buy again unless the price suffers a significant collapse (-20%/-30%) for no relevant reason.

It is quite rare for me to go all in on a company, usually the price collapse stops before my 3-4 tranche. The last time I happened to invest so much was with Meta (META), under $100 per share: I was all in and did not expect the collapse to be so pronounced. The hope is that Evolution will turn out to be Meta 2.0, but of course, every investment is unique and comparisons are not very helpful....

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