Tag: investment in corporation

Value Investing & Growth Investing – What Are They?

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Stock trading or investment is one of the most sought investment options for many investors. It does require some evaluation and lots of patience. Stock trading is not just about buying and selling stocks of different companies. However, it’s more about reading those companies, and there are two standard approaches – Value Investing and Growth Investing. There’s no need to panic if you have heard about them for the first time because our expert is here to help you out.

Our expert is none other than Malik Mullino, CEO of Jadeite Assets LLC and a retired-marine who’s been helping people for a long time.

According to Malik Mullino, ” value and growth investments are two fundamental approaches to stock investments “. Both have their perks and downs, but both seek to maximize the investment value to investors.”

To explain in it simple words, in value investing, investors go with undervalued stocks. In contrast, in growth investing, investors buy stocks of companies with the potential to outperform the market at the time.

Here’s a better breakdown of Value and Growth Investment to help you understand them in a better way.

Value Investment 

In the value investment approach, investors lookout for the companies which have fallen but still have strong fundamentals. These are the well established and big corporations, which have been trading below their worth.

There could be several reasons for a stock being undervalued. Public perceptions of these corporations matter a lot, which hinders the prices; chances could be that company or its central personnel could be caught in some scandal or some unethical practice. But at the same time, the company’s financials are still as strong it was, and that is why value investors opt for such stocks because the company’s finances will hold up, and after a while, the public will forget about these scandals, and the price will rise to where it should have been.

Consider a company X with a stock price of $20 a share, based on the number of shares outstanding divided by its capitalization. But, right now, it’s trading for $10 a share, which is quite a good deal considering that stocks’ price will be up after a while.

Here are some of the critical characteristics of the growth funds

  • Priced lower than the overall market: The idea behind value investing is that good companies’ stocks will bounce back in time if other investors recognize the actual value.
  • Priced below similar companies in the industry: Many value investors believe that most stocks are undervalued due to investors’ overreaction to recent company problems, such as low earnings, negative publicity, or it could be some legal issues, which might not matter in the long run.
  • Carry somewhat less risk than the market: There’s one good thing that these stocks take time to turn around so that value stocks may be more suited to longer-term investors.

Growth Investment

In the growth investment approach, the companies have registered more gains which have caught investors’ eyes since it is expected to continue with such a trend.

But what’s the reason behind such a good performance. Well, the gains might be unexpectedly high due to the company’s recent performance, or some of its product performing well enough in the market with a promise of ’emergence’ over the years.

Consider a company that’s been trading for $30 a share while its competitors are still at $18 a share and the price of stocks of the first company is rising steadily, then it will be considered as a growth stock or company.

Growth stocks can be found in small, mid or large-cap sectors as long as analysts conclude that they have achieved their potential.

Now, what’s the reason behind investors feeling confident about growth stock’s future. The main reason could be a company working on a product expected to excel in the coming years or minting more money than its competitors.

  • Higher priced than the market. Investors are willing to pay a high price with the expectation of selling them at even higher prices as the companies continue to grow over the years.
  • High earnings growth records: Growth companies potentially continue to achieve high earning regardless of economic conditions even if its not suitable for the market.
  • More volatile than the market. There’s a risk in buying a growth stock as its price could fall sharply any day, mainly if earnings don’t go well with big traders.

Well, there’s one more category, a blend of both; a stock can also be undervalued while performing better than the market standards at the same time.

Value Investing and Growth Investing – Which Is Better?

On comparing the historical trends, value stocks are considered to have a lower level of risk, atleast theoretically, since they are well established, and big-time corporations whose fate will turn around sometime in future, and investing in value stocks might not result in a capital loss since these stocks also pay dividends.

Meanwhile, growth stocks don’t offer dividends and reinvest the earnings back into the company. The probability of growth stocks going down is more than the value stocks if the company is unable to keep up with the market’s growth expectations. So overall, growth stocks come with the biggest reward and risk at the same time.

Some people opt for both value and growth stocks when investing for the long term since the risk will be reduced, and gains could be multiplied depending on how the market fares out in future. This approach enables investors to profit from the economic cycles, whether it’s beneficial for the value or growth stock.

As Malik Mullino says, the decision to invest is a personal choice. The same person can only decide whether to invest in growth or value stocks. It depends on their risk tolerance and investment goals. But it is essential to study the market and to evaluate the company before proceeding with the investment.

At last, it’s all about you. It’s only you who can decide where to put your money, but if you need help, you can reach out to our CEO Malik Mullino for any suggestions.

 

Source: Value Investing and Growth Investing – What Are They? – satPRnews

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Measuring The Total Economic Impact Of Unified Endpoint Management

Today, the average IT organization is spending at least 5% of their organization’s annual revenue on IT investments – and the cost of each investment spans far beyond its price tag. Each one needs to be deployed and maintained by IT staff that is grappling with more tools and software products than ever before. Of course, supporting an IT staff comes with its own set of costs and challenges. CIOs, CTOs, and their teams are human resource scarce and spread extremely thin, so the opportunity cost of focusing on one tool versus another has never been greater.

This complexity comes at a time where clearly defined IT strategies that bring about positive impact to the business are non-negotiable. According to IDG’s 2019 State of the CIO report, “62% of CIOs say that the creation of new revenue generating initiatives is among their job responsibilities.” 88% claim to be “more involved in leading digital transformation initiatives compared to their business counterparts.” Net-net, the onus is on IT leaders to streamline efficiencies, reduce total cost of ownership (TCO), and net a return on investment (ROI) for the business.

IT investment decisions driven by real customer data

Forrester has been instrumental in helping business decision-makers overcome their resource, budget, and investment challenges by introducing a Total Economic Impact™ (TEI) methodology. Not only does the TEI take costs and benefits into account, but also the time saved and economic impact of strategic decisions made. Forrester’s TEI assessments are drawn from real client experiences with vendor products and services. The team diligently documents customer outcomes to better understand their positive or negative business impact. Consulting this unique research methodology helps business decision makers justify and future-proof their investments.

Making the transition to unified endpoint management

If your organization is like most, it has a mix of devices that employees use to get work done – whether they’re corporate-liable or supported under a bring your own device (BYOD) program. With 464 custom apps deployed across the average enterprise, procuring a means to manage devices and everything on them (not just apps, but also content and data) has become mission-critical for businesses.

Traditionally, mobile device management (MDM), enterprise mobility management (EMM), and client management tools (CMTs) have been relied upon to get the job done. However, business use cases for devices have become more complex and wide ranging. These shifts are necessitating a tool that makes it possible to manage everything from one place. This is unified endpoint management (UEM).

Commissioned by IBM, Forrester Consulting recently conducted a TEI analysis of IBM Security MaaS360 UEM customers to determine whether they are reducing TCO and netting a quick break-even on their investment. The Forrester team took the time to glean feedback from 19 MaaS360 UEM clients representing financial services, nonprofit, utilities, manufacturing, and professional services industries. These individuals are responsible for managing anywhere from 500 to 100,000 devices for their respective businesses each day.

How UEM from IBM resulted in significant ROI1

Across the 19 clients that were interviewed, Forrester identified the following key benefits. These amount to a three-year 160% ROI and payback in less than 3 months:

  • Endpoint configuration: a 96% reduction in time spend provisioning devices
  • End-user setup: a 47% reduction in time spent getting employees up and running
  • Modern management: $22,960 saved from simplifying their management approach
  • Support ticket remediation: 50% fewer tickets and 55% less time taken to resolve them
  • Security breach remediation: 80% reduction in number of incidents experienced

Of course, these benefits were experienced by a composite organization used to represent the 19 customers surveyed by Forrester. Organizations considering UEM that are actively seeking their own customized TEI assessment can now work with IBMers to do just that. Request your own complementary assessment today to understand whether you can expect a return on your UEM investment, and if so, how quickly you can expect your payback period to arrive.

Request a custom Forrester TEI assessment now

1 The Total Economic Impact™ Of IBM MaaS360 With Watson, a commissioned study conducted by Forrester Consulting, April 2019

John Harrington John Harrington

John Harrington is a Program Director at IBM Security, overseeing product marketing for data security and unified endpoint management (UEM). In this capacity, he works with product managers, product marketers, and account managers to provide guidance for businesses encountering modern cybersecurity challenges. He’s focused on helping clients learn how to establish digital trust and the various ways Guardium and MaaS360 can help them keep their data and endpoints protected. John is also working towards an MBA graduate degree at Villanova School of Business, and spends his spare time exploring the city of Philadelphia with his wife and their two beagles.

Source: IBM Security BrandVoice: Measuring The Total Economic Impact Of Unified Endpoint Management

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5 Things Wealthy People Invest Their Money Into

I never had access to money during my childhood, or even as I grew into a teenager and young adult. Both of my parents lived paycheck-to-paycheck and struggled with debt, so that’s really all I knew.

As a result, I was never really exposed to the investing world, nor did I learn to think of entrepreneurship as a viable career option. My parents were busy trying to keep the lights on and food on the table — the thought of having extra money to invest and build wealth would have been completely foreign to them.

Eventually though, I got my first introduction to the concepts behind investing and building wealth. I majored in finance in college, learned about mutual funds and ETFs, and found out how the stock market really works.

As I began my career as a financial advisor and transitioned to entrepreneurship, I was always looking for ways to increase my base of knowledge. I read books like Rich Dad, Poor Dad and Crush It: Why NOW is the Time to Cash In On Your Passion by Gary Vaynerchuk. However, books like these didn’t teach me how to invest my money. Instead, they taught me how to invest in myself and my personal growth.

5 “Non-Investment” Investments Rich People Learn to Make

The thing is, these are areas where rich people really do invest time and time again. That’s because they know something most people don’t — they know that growing wealth is about more than throwing money into the stock market, becoming an entrepreneur, or taking big risks to fund a promising startup.

Building wealth is just as much about becoming the best version of yourself, staying in constant learning mode, and building a network of like-minded people who can help you reach your goals.

Want to know exactly what I’m talking about? Here are some of the most common non-financial investments rich people love to make:

Accelerated Learning

Most rich people read a lot of books written by people who inspire them in some way or have unique experience to share. I’ve always been a big reader too, diving into books like The 4-Hour Workweek by Tim Ferriss and The Millionaire Messenger by Brendon Burchard.

Reading is such a smart and inexpensive way to fill some of your free time and increase your knowledge, which is something the wealthy already know. If reading a few hours per week could help you stay mentally sharp while you learn new things, why wouldn’t you make that decision over and over?

But there are other ways to accelerate learning that don’t involve reading or books. You can also take online courses in topics that relate to your career. As an example, I’ve personally taken courses on YouTube marketing, productivity, search engine optimization, and affiliate marketing.

Going to conferences to learn new skills from others in your field is also a smart move rich people make. FinCon is a conference for financial bloggers I attend each year that I can attribute making millions of dollars from — mostly from meeting brands, learning new skills, and networking with my peers.

Personal Coaching

Personal coaching is another smart investment rich people make when they know they need some help reaching their potential. Morgan Ranstrom, who is a financial planner in Minneapolis, Minnesota, told me he wholeheartedly suggests a high-quality coaching program for anyone who needs help taking that next step in their business.

Ranstrom has worked with various life and business coaches that have helped him understand his values and clarify his goals, become a published author, and maximize his impact as a professional and business owner.

“For individuals looking to break through to the next level of success, I highly recommend investing in a coach,” he says.

Personally, I can say that coaching changed my life. I signed up for a program called Strategic Coach after being in business for five years, and this program helped me triple my revenue over the next three years.

The thing that scares most people off about coaching is that it’s not free; in fact, some coaching programs cost thousands of dollars. But wealthy people know the investment can be well worth it, which is why they’re more than willing to dive in.

Mentorship

Mentorship can also be huge, particularly as you are learning the ropes in your field. One of the best mentors I had was the first financial advisor that hired me. He was a million-dollar producer and had almost a decade of experience under his belt. I immediately gained access to his knowledge since his office was just next door and, believe me, I learned as much as I could.

Todd Herman, author of The Alter Ego Effect, shares in his book how he mentored under the top mindset coach in his industry when he couldn’t really afford it. He lived in a Motel 6 for almost a month to make the program fit in his budget though. Why? Because he knew this investment was crucial for his career. And, guess what? He was right.

Over the last year, I’ve participated in mentoring with Dr. Josh Axe, an entrepreneur who has built a $100 million health and wellness company. Just seeing how he runs his business and his personal life have been instrumental to my own personal growth.

The bottom line: Seek out people who are where you want to be, ask them to mentor you or sign up for their mentorship programs , and you can absolutely accomplish your goals faster.

Mastermind Groups

It’s frequently said that Dave Ramsey was in a mastermind group called the Young Eagles when he first started his business. Entrepreneurs such as Aaron Walker and Dan Miller were also in the group, and they leaned on another for advice and mentorship to get where they are today. Ramit Sethi, bestselling author of I Will Teach You to Be Rich, is in a mastermind group with Derek Halpern from Social Triggers.com and other successful entrepreneurs.

I also lead a mastermind group for men. Believe it or not, one of our members has been able to increase his recurring annual revenue over $300,000 because of advice he has received.

These are just a few examples of masterminds that have worked but trust me when I say most of the wealthy elite participate in some sort of mastermind group or club.

Mastermind groups are insanely helpful because they let you bounce business ideas off other entrepreneurs who may think differently than you but still have your best interests at heart. And sometimes, it’s a small piece of advice or a single statement that can make all the difference in your own business goals — and your life.

Building Relationships

When it comes to the top tiers of the business world, there’s one saying that’s almost always true:

“It’s not always what you know, but who you know.”

According to Alex Whitehouse of Whitehouse Wealth Management, successful people forge relationships that catapult their careers.

“The right connections can help land better jobs, accelerate promotions, or start lucrative businesses,” he says.

But it’s not about cheesy networking events. To get the most value, focus on meeting people at professional conferences, mastermind groups, and high-quality membership communities, says Whitehouse.

This is a strategy most successful people know — meet other people who you admire and build a relationship that is beneficial for everyone.

But, there’s a catch — and this is important. When you meet someone new who could potentially help you in your business, you can’t just come out of the gate asking for favors. I personally believe in the VBA method — or “Value Before the Ask.” This means making sure you provide value before asking a favor from anyone.

In other words, make sure you’re doing your share of the work to make the relationship a win for everyone. If you try to build relationships with other entrepreneurs just so you can ride their coattails, you’ll be kicked to the curb before you know it.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

 

Jeff Rose

 

I am a certified financial planner, author, blogger, and Iraqi combat veteran. I’m best known for my blogs GoodFinancialCents.com and LifeInsurancebyJeff.com and my book, Soldier of Finance: Take Charge of Your Money and Invest in Your Future. I escaped a path of financial destruction by being a college drop out and having over $20,000 of credit card debt to eventually become a self-made millionaire. My mission is help GenX’ers achieve financial freedom through strong money habits and unleashing their entrepreneurial spirit. My work has been featured in The Wall Street Journal, USA Today, Reuters and Fox Business.

Source: 5 Things Wealthy People Invest Their Money Into

Warren Buffett is the godfather of modern-day investing. For nearly 50 years, Buffett has run Berkshire Hathaway, which owns over 60 companies, like Geico and Dairy Queen, plus minority stakes in Apple, Coca-Cola, and many others. His $82.5 billion fortune makes him the third richest person in the world. And he’s vowed to give nearly all of it away. The Oracle of Omaha is here to talk about what shaped his investment strategy and how to master today’s market. I’m Andy Serwer. Welcome to a special edition of “Influencers” from Omaha, Nebraska. It’s my pleasure to welcome Berkshire Hathaway CEO Warren Buffett. Warren, welcome. WARREN BUFFETT: Thanks for coming. ANDY SERWER: So let’s start off and talk about the economy a little bit. And obviously, we’ve been on a good long run here. WARREN BUFFETT: A very long run. ANDY SERWER: And does that surprise you? And what would be the signs that you would look for to see that things were winding down? WARREN BUFFETT: Well, I look at a lot of figures just in connection with our businesses. I like to get numbers. So I’m getting reports in weekly in some businesses, but that doesn’t tell me what the economy’s going to six months from now or three months from now. It tells me what’s going on now with our businesses. And it really doesn’t make any difference in what I do today in terms of buying stocks or buying businesses what those numbers tell me. They’re interesting, but they’re not guides to me. For more of Warren Buffett’s interview with Andy Serwer

click; https://finance.yahoo.com/news/influe…

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More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

When investors encounter tough days in the stock market, they need a game plan for how to respond, Jim Cramer told his Mad Money viewers Friday. That means knowing what type of selloff you’re dealing with and how best to navigate it. Fortunately, history can be your guide in identifying those inevitable moments of weakness and keep you from panicking.

Stocks finished down Friday, as Donald Trump’s recent threat to levy 10% tariffs on an additional $300 billion of Chinese imports overshadowed the latest U.S. jobs data.

The Dow Jones Industrial Average, which hit a session low of 334 points, finished down 98 points, or 0.37%, to 26,485. The S&P 500, which saw its worst week of the year, fell 0.73% and the Nasdaq dropped 1.32%. The Dow had its second worst week of the year as it fell 2.6%.

Cramer told his viewers that the U.S. stock markets have only seen two truly horrendous selloffs since he began trading in 1979. Those were the Black Monday crash in October 1987 and the rolling crash of the financial crisis from 2007 through 2009. But while both of these declines saw huge losses, they were in fact very different.

Many investors don’t remember Black Monday, where the Dow Jones Industrial Average lost 22% in a single day. Even fewer remember that the market lost 10% during the week prior, and continued its losses on the Tuesday after. While it wasn’t known at the time, this crash was mechanical in nature, caused by a futures market that overwhelmed the ability to process the flood of transactions. In the confusion, buyers stepped aside and prices plunged.

The carnage wasn’t stemmed until the Federal Reserve stepped in with promises of extra liquidity. But in the end, the economy was strong. There was nothing wrong with the underlying companies, the market just stopped working. That’s why it only took 16 months to recover to their pre-crash levels.

Investors witnessed similar mechanical meltdowns in the so-called “flash crash” of 2010 and its twin in 2015. On May 6, 2010 at precisely 2:32 p.m. Eastern, the futures markets again overwhelmed the markets, only this time machines were doing most of the trading. The crash lasted for a total of 36 minutes, during which time the Dow plunged 1,000 points from near the 10,000 level.

In August of 2015, another flash crash occurred at the open, with the Dow again falling 1,000 points in the blink of an eye. In the confusion, traders couldn’t tell which prices were real and which ones were pure fantasy. Only those with strong stomachs risked trading at the heart of the decline, but those traders were rewarded handsomely.

In all of these cases, Cramer said, the machinery of the markets was broken. Even the circuit breakers put in place after 1987 were not able to stem the declines and in fact, did very little to even slow them down. But for those investors who were able to recognize what was actually happening, these declines were a once- (well, twice-) in-a-lifetime gift.

Cramer and the AAP team are making three more trades as they reposition on this week’s selloff, including Burlington Stores, (BURL – Get Report) and Home Depot (HD – Get Report) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

The Great Recession

The Great Recession was a totally different animal. The market began falling in October 2007, but didn’t bottom until March 2009, almost two years later. Afterwards, it took until March of 2013, four years later, for the markets to get back to even. Cramer said this kind of decline is the most dangerous, but fortunately, it’s truly a once-in-a-lifetime event, only occurring every 80 years or so.

The Great Recession was caused by the Fed raising interest rates 17 times in lock step, trying to cool an already cooling economy. The recession could have been avoided had the Fed done their homework and actually talked to CEOs, as Cramer did at the time.

Cramer recalled talking to the CEOs of banks, all of whom told him that defaults on mortgages were on the rise in a fashion none of them had seen before. Cramer’s famous “They know nothing” rant on CNBC stemmed from those conversations, as the Fed did nothing until the first banks began to collapse. The market fell 40% before finally finding its footing.

How can investors identify this type of devastating decline? Cramer said investors can ask whether the economy is on a solid footing. Is business declining? Is employment falling? Are interest rates still rising even as cracks are appearing? If big companies are unable to pay their bills, the problem could be a lot deeper than you think.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Today’s Market

Today’s market is not like 2007, however, Cramer said. Business is stronger, our banking system is stronger and there’s still time for the Fed to take their foot off the brakes and wait for more data before proceeding.

So you’ve just spotted a mechanical breakdown in the market, what should you buy? Cramer said he’s always been a fan of accidental high-yielders, companies whose dividend yield is spiking because their share prices are falling with the broader averages.

He said that these stocks are always among the first to rebound, as their dividends help protect them. He advised always buying in wide scales as the market declines. That way, if the rebound is swift, you’ll still make a little money, but if it’s a larger, multiday sell off, you’ll make even more.

Cramer reminded viewers that when the Fed is cutting interest rates, almost every market dip is a buying opportunity. But when it’s raising rates, things get tricky. Not every rate hike causes a crash, however, only ones that push rates high enough to break the economy.

During these times, it’s important to remember that stocks aren’t the only investment class out there. You can also invest in gold, bonds or real estate to stay diversified.

It’s Not Just the Fed

The Fed isn’t the only reason why the market declines, and Cramer ended the show with a list of the other common culprits.

The first sell-off culprit are margin calls. Too often, money managers borrow more money than they can afford and when their bets turn south, they are forced to sell positions to raise money. We saw this happen in early 2018 when traders were betting against market volatility by shorting the VIX. When volatility returned, these traders lost a fortune and the whole market suffered.

There are also international reasons for the market to sell off, including crises in Greece, Cyprus, Turkey and Mexico, among others. Cramer said in these cases, it’s important to ask whether your portfolio will actually be impacted by these events. Usually, the answer is no.

Then there’s the IPO market. Stocks play by the laws of supply and demand after all, so when tons of new IPOs are hitting the markets, money managers often have to sell something in order to buy them. Declines can also stem form multiple earnings shortfalls as well as, yes, political rhetoric coming from Washington.

Cramer said many of these declines happen over multiple days. The key is to watch if the selling ends by 2:45 p.m. Eastern. If so, it may be safe to buy. But if not, there will likely be more selling the following day and it will pay to be patient.

By:

Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.

To watch replays of Cramer’s video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer’s free Booyah! newsletter with all of his latest articles and videos please click here.

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Source: More Selloff Strategies: Cramer’s ‘Mad Money’ Recap

 

Investors Join Sinclair’s Big Bet On Sports And Sports Gambling

Sinclair Broadcast Group Inc. headquarters in Cockeysville, Maryland. (Photographer: Andrew Harrer/Bloomberg)

Sinclair Broadcast Group Inc. headquarters in Cockeysville, Maryland. (Photographer: Andrew Harrer/Bloomberg)

© 2018 BLOOMBERG FINANCE LP

Investors were loving Sinclair Broadcast Group’s big bet on the future of sports, and sports gambling, sending the company’s stock up 30% in early trading on Monday.

The deal, announced Friday afternoon, would see Sinclair and partner Byron Allen of Entertainment Studios pay Disney $10.6 billion for 21 regional sports networks around the country. Shares shot up in early trading by more than $13 a share, to as much as $58.84.

Federal regulators forced Disney to divest the sports networks as part of completing its $71.6 billion acquisition of most of 21st Century Fox.

Previously, Sinclair joined with the New York Yankees and Amazon in the $3.5 billion acquisition of a 22nd RSN, the YES Network in New York. Sinclair also partnered with the Cubs baseball team to launch Marquee Sports Network in Chicago. That channel will launch in 2020.

It’s a big bet, part of a big transformation for Sinclair, which last summer was stunned when regulators blocked its $3.9 billion acquisition of Tribune Media. Sinclair, with about 200 stations under its control, would have had too large a share of the broadcast sector, regulators ruled.

At year’s end, rival station group Nexstar offered more than $6 billion for Tribune in a deal that looks likely to gain approval.

But the sports deals mark a major new direction for Sinclair. It marks a major bet on the likelihood that sports gambling soon will be widely legal across the United States, and hugely lucrative for those outlets that possess access to game and game information, as well as technology for easily betting on those games.

“This acquisition is an extraordinary opportunity to diversify Sinclair’s content sources and revenue streams with high-quality assets that are driving live viewing,” Ripley said in announcing the deal. “We also see this as an opportunity to realize cross-promotional collaboration, and synergistic benefits related to programming and production.”

A U.S. Supreme Court decision has cleared the way for state-by-state legalization of gambling in the United States. New Jersey and a handful of other states already have jumped in, reaping big paydays so far.

The main holdup for further gambling expansion likely will be efforts by the major sports leagues, led by the NBA, to get a cut of the take. They’re pushing provisions in legalization bills for so-called “integrity fees.”

Those issues will almost certainly get worked out, given projections that legalized gambling across most of the U.S. could generate tens of billions of dollars.

And that’s what Sinclair is betting on with the RSN acquisitions. Ripley told Reuters on Sunday that his company would be open to licensing some of the sports content it acquired in the deal to outlets such as Amazon, Disney and AT&T as those companies jostle for position in the increasingly competitive online-streaming space.

“There is only going to be more competition and more interest for key assets like this in the future,” Ripley said. “We have an interest in as broad a distribution as possible.”

Ripley called the RSN deal a bargain. The price is certainly far below the estimates of $15 billion to $20 billion that most analysts had predicted for the portfolio. But the networks could be valuable for multiple reasons.

For instance, the company expects to profit from advertising about gambling, Ripley said.

He estimated industrywide, some $1.5 billion to $2 billion in new revenue would come in from sports book operators and other companies in the space.

Given broadcast advertising’s cyclical nature – it yo-yos up and down on election-year and Olympics/World Cup spending – that could be a big deal, especially because other ad revenues have been flat or slightly down in recent years.

Sinclair already owns The Tennis Channel, which holds rights to many of the major tennis tournaments held around the world.

And sports of all kinds – already a sticky, lucrative programming option given the willingness of fans to pay for access – is about to become even more lucrative with the increasing legalization of gambling.

As Sinclair CEO Christopher Ripley told me a few months ago, tennis is already the second-most wagered-upon sport in Europe, where gambling is widely legal. Soccer, of course, is No. 1.

Most of the tennis gambling “handle,” or amounts wagered, comes from in-game “prop” bets (who will win the next game or set, or how many aces will a player serve) rather than overall match outcomes, Ripley said.

The company already is working on technology that could be used to power in-game betting on its broadcasts, Ripley said.

Tennis, with its numerous breaks and game-match-set structure, is ideal for lots of prop bets. But many popular American sports, most notably football and baseball, but even more fluid and fast-paced sports such as basketball, can also become a lucrative source of legal betting.

The company also owns other sports properties, including online service Stadium, Ring of Honor Wrestling and high school sports programming on its local stations.

The deal also could boost Sinclair’s recently launched STIRR online service, which features local news and sports content from its broadcast stations that cover about 40 percent of the country. That Sinclair-owned content is woven in with entertainment and news content from about 30 partners in an ad-supported service. Initial viewership results for STIRR have reportedly been well above internal projections, but the company has not released any details.

Adding the RSN content to STIRR’s offerings, either directly as Viacom is doing on new acquisition Pluto.TV with limited versions of its cable properties, or as a premium upsell, could further boost STIRR.

Sinclair also has been a big proponent of ATSC 3.0, the new broadcast technology now being rolled out around the country. Among other capabilities, ATSC 3.0 will allow broadcast groups to provide addressable, targeted advertising to viewers, and to offer new channels and data services within the same bandwidth they’re now using to broadcast their main signal.

It’s easy to imagine those potential data services including sports-related information tied to the RSN networks’ teams, as well as gambling information.

STIRR’s focus on local news and sports represents a half-step toward an ATSC 3.0 future, but relies on widely available Internet-based technology.

ATSC 3.0 itself is not expected to have a substantial impact until at least 2021 because of the challenges of both broadcaster rollout and consumer adoption of newly capable TVs, external streaming boxes and even mobile devices.

Thanks for reading! Follow me on Forbes and the socials, and subscribe to my Bloom in Tech podcast on iTunes, Spotify, Overcast, Anchor.fm, SoundCloud and more. 

David Bloom

Contributor

I’m a Los Angeles-based columnist, consultant, speaker, podcaster and consultant focused on the collision of tech, media and entertainment.

Source: Investors Join Sinclair’s Big Bet On Sports And Sports Gambling

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