Timothy Collins: Skip the Shorts and Look at This Play Instead
Shorting stocks is among the more adrenaline-producing forms of trading, but it’s best practiced during periods of greed and exuberance when investors get too excited.
In quieter times, Real Money’s Timothy Collins has a different idea.
“I’m keeping an eye on Lottery.com LTRY,” Collins wrote recently on Real Money. “This is a former SPAC — special purpose acquisition company. And, like many other ‘de-SPAC’ names that went public, it has gotten hammered over the past few months.”
He adds, “the company operates a business-to-consumer platform that enables players and commercial partners to remotely purchase legally sanctioned lottery games in the United States and internationally. Additionally, the platform provides lottery results, numbers, winners, and news.”
As to how it works, “the model is simple: A user buys a lottery ticket from Lottery.com. Lottery.com prints the lottery ticket on the user’s behalf. The user receives a digitized version. If the user wins, she is automatically notified, and the winnings are promptly deposited into a digital wallet. All of this is secured on the blockchain.”
Lotteries remain largely undigitized, Collins noted. “ We already know how much shopping Americans do online, but did you also know 82% of U.S. sports betting is online and 47% of lodging? But when it comes to lottery, only 7% is online. It is estimated online lottery will grow by 104% by 2025 to a total market around $44.6 billion. That means Lottery’s market share is only about .02%.”
