Gambling.com Group: Durable Tailwinds? (Ticker: GAMB)

Facing headwinds, this digital gambling player is evolving its business and trades at a 20% free cash flow yield.

Hello everyone,

This is Brett. Today is a big one for Chit Chat Stocks and this newsletter.

Below, you’ll notice most of this email is behind a paywall. That is because we are officially launching ~Emerging Moats~ stock research under the existing Chit Chat Stocks email newsletter. Written by yours truly, Emerging Moats is a paid newsletter that will produce a stock research report every four weeks and provide regular updates on existing stocks in the Emerging Moats universe.

Emerging Moats research reports will be comprehensive, but not onerous reads. Each report should take a maximum of 15 - 20 minutes to finish, providing enough analysis for someone to make an actionable investment decision without wasting their day.

Value from this newsletter will come from distilling tens of hours of research into a 15 minute read that gets you up to speed on a stock. If you trust my research – which I think anyone reading this does – then Emerging Moats will give you hundreds of hours in analyst work every year, all at a reasonable price.

Why the name Emerging Moats? Well, simply because these are the stocks I am hunting for in my own portfolio. These are the businesses with emerging competitive advantages that can produce 10x or 100x returns for shareholders over decades. The best opportunities in public markets come from stocks with rapidly improving competitive advantages. In the long run, companies with widening moats generate profits well above investor expectations, leading to phenomenal stock returns.

Here’s what I can promise subscribers:

1. Consistent high quality research. Every four weeks, subscribers will receive a stock research report on a company I’ve never written about.

2. Full portfolio transparency. Readers will know my investment decisions before they happen, with full transparency on portfolio allocation.

3. Regular updates post-research. For stocks in my portfolio or on my Emerging Moats watchlist, I will provide updates weekly. These will come out on the three Fridays in between the introductory research reports. Core holdings may get updates every quarter, while smaller positions may be updated twice a year, along with key watchlist stocks.

Here’s what I cannot promise subscribers:

1. Holding your hand. I will be fully transparent on what I am buying or selling, but I cannot tell you what to buy or sell.

2. Guaranteed returns. The goal of this newsletter is to provide stock research on emerging opportunities as supplemental research for professionals and knowledgeable DIY investors. If you want someone to just tell you what stocks to buy, search elsewhere.

To test the waters, I would recommend reading past reports on Kraken Robotics and Oscar Health. They are completely free. You can find all our historical stock reports on the Stock Research tab of the website.

Subscribers can pay $500 a year for the Emerging Moats newsletter. Sign-up here.

Podcast listeners, don’t fret, we understand not everyone is in the position to pay for stock research. The Chit Chat Stocks Podcast will still provide regular investing content including our weekly Investing Power Hours, analyst interviews, and Ryan’s regular stock research episodes (my research will now be behind this paywall).

Professional teams and wealthy individuals hunting for emerging moat stocks should subscribe to Emerging Moats Research. Please do not subscribe if the annual subscription price is going to be a large % of your investable assets.

Below, you will find my first paid research report on Gambling.com Group (ticker: GAMB). Growing quickly through an acquisition strategy in the online gambling space, Gambling.com Group has navigated the choppy waters of the sector and currently trades at free cash flow yield of roughly 20%.

In the newsletter, I outline the business history, how it makes money, my analysis of management, its emerging moat, valuation, and my investment decision.

-Brett

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Gambling.com Group: Durable Tailwinds? (Ticker: GAMB)

Charles Gillespie, his founding team, and an outside group of investors purchased the Gambling.com domain in 2011 for $2.5 million. Saying the purchase struck gold would be an understatement.

Today, Gambling.com Group is doing over $100 million in performance marketing revenue with 40%+ segment margins, with the namesake domain generating well over 100% in return in cash on the initial purchase every year.