While you often find me trading alongside financial professionals in the blue-chip and mega cap spaces, once in a while I’ll look into lower-priced stocks with an intriguing catalyst in an effort to capture faster moving trades, with potentially less time involved.
That’s the case today as I observed Dave & Buster’s Entertainment (NYSE: PLAY) to be a stock featured in TrackStar piquing financial professionals interest… and uncovered exactly why.
Amid pressing needs, Dave & Buster’s Entertainment has entered an open market sale agreement with Jefferies to sell up to $75M worth of shares in an “at-the-market” equity offering program.
Dave & Buster’s Entertainment intends to use the proceeds from the offering primarily to strengthen its balance sheet.
The question financial professionals have to be asking themselves is “when will up to $75M worth of Dave & Buster’s Entertainment shares change hands?”
And that’s what I’m wondering too. That will move the price of the stock, and could make for a very lucrative trade if timed correctly.
While broader markets have rallied about 5% week-to-date, PLAY is trading sideways.
I believe the market is awaiting the answer to the question outlined above, and may be ready to act upon it if the time comes… maybe they already have open positions in anticipation of this stock catalyst!
You’ll notice PLAY is trading right above $13/share support in the chart above. Should PLAY remain trading above $13/share support today, I’ll consider taking a bullish position on PLAY ahead of any transformative announcements with the goal of profiting alongside financial professionals.
Yours for TrackStar trading,
Davis Martin
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.