MRDN up 60% in 2.5 days trading / $9 share price to $35 valuation disconnection

Meridian Holdings MRDN has only traded 2 days and has already shot over my 3 month $6 target and closing in on $9. MRDN currently has such a rare share price to valuation disconnection. 

You are looking at a pre-runner folks. This is a LT buy and hold. A stock NOBODY knows or posts about that already HAS THE FUNDAMENTALS AND METRICS to be $30 – $50+ stock. This is where retail has an edge. All it needs is some visibility. 

MRDN has a whopping 90% insider ownership and they have no plans to exit. They are just getting started. After the 90% insiders, 4% institutions, and a few bigger retail holders are taken off the 12.5 mil outstanding shares only 500k-700K available shares remain. Any buying discovery will start SP momentum with this tiny retail float and pour gasoline on momentum in our current “sentiment fueled” market.

MRDN now has approximately 12.5 million outstanding shares. At $8 thats a market cap of $100 mil. MRDN will conservatively make over $210 -$220 million this year. That means it is trading under .5X in a sector averaging 2.5X. At 2.5X MRDN market valuation is $500 mil / 12.5 mil shares = $40 per share. 

Meridianbet and Expanse Studios alone appraised at $300-$400 mil pre-merger. MRDN has very little net debt left if any and the debt/dilution was never operational, it was acquisition based. This means now that the majority of that debt as well as one offs are rear view they should return to profitability. Considering $210 mil rev w/ $10-$15 mil net we are looking at .80 -$1.60 EPS as a start. 

MRDN now operates in over 20 territories and handles a staggering $2 – $3 billion wagering handle. They are one of the very few multi B2B and B2C rev stream companies set up with all the pieces to scale globally – including 1/79 with a coveted Federal Brazil Gaming Lic. The World Cup is right around the corner and MRDN has tailwinds of Govs fast tracking sportsbetting/igaming legislation for the tax revenue. They have their own top sports betting engine. They are one of the 5% that own and control their own AI tech. They even create their own content. Countries are building out internet access, 5G, cell, etc that will allow access to service as well as MRDN mobil-first apps. 

MRDN has 6 profitable subsidiary companies. Golden Matrix Group, Meridanbet Group, RKings, MexPlay, Expanse Studios and Classics For A Cause. The beautiful thing is they were all decentralized acquisitions so the CEO or Founder and team that has a history of success is left in place to do what they do best – continue to execute and grow.

Expanse Studios is growing like they are on steroids. They literally ink a new B2B partner a day topping 1,300 operators last year and shooting for 3000 this yr. With over 422% rev growth YOY they are doing it all – AI, Prediction, Crash, Social, Casino, Sweepstakes, Mobil first, etc. Also, the multiples of some B2B content makers are 3-8X ($MRDN is under .5x). I doubt MRDN will spin off Expanse Studios but they certainly have a bright future and add value to MRDN.

I believe right now MRDN is truly a miss-understood, undiscovered, and unbelievable asymmetric opportunity. Unfortunately early growth stocks are not moving on fundamentals in todays market. They are moving on:

1. Visibility.

2. Discovery – comes with visibility.

3. Sentiment – comes with discovery and SP increase.

4. Momentum – comes with inc in vol, sentiment and FOMO.

As far as the leadership of the 3 main companies:

Meridianbet CEO: Zoran Milosevic

Expanse Studios CEO: Damian Stamenkovic

RKings CEO: Mark Weir

I researched these guys in depth. They are no hype, head down, fiscally conservative grinders with long histories of execution and ZERO borrowing – now with skin in the game.

I am not an advisor and this is for fun!

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