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Stock impact report

Diamond Eagle: Parabolic Run-Up And S-4 Filing Raise Valuation Concerns [Seeking Alpha]

Diamond Eagle Acquisition Corp. (DEACU) 
Company Research Source: Seeking Alpha
Summary DEAC has skyrocketed since announcing a merger with DraftKings and SBTech on Dec. 23. The rally makes some sense as a trade, given a thin float and optimism toward the sports betting optimism; and the rally likely isn't over. From a mid- to long-term standpoint, however, the new, higher valuation matters, and detailed financials from the S-4 actually look modestly disappointing. DEAC likely will trade on sentiment into the merger close and beyond, but for long-term investors the case already looks thinner. Special purpose acquisition corporation Diamond Eagle Acquisition ( was merging Form S-4 The gains are not particularly surprising. I wrote immediately after the announcement that DEAC looked like a good trade source: Yahoo! Finance It's certainly possible, and I'd argue likely, that the optimism continues, giving DEAC room to continue higher. In recent years, hyped trends have led to parabolic and even bubbly moves in other consumer-facing stocks. The ingredients exist here Show less Read more
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