PreMarket Prep Stock Of The Day: GAN Limited

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

For those who don't have the time to tune in live or listen to the podcast, Benzinga will highlight one stock that merits further discussion. This analysis is not a buy or sell recommendation.

The IPO market has tapered off during the coronavirus crisis. One exception is GAN Limited GAN, which made its debut May 5 and has performed quite well, making it the PreMarket Prep Stock of the Day.

About GAN

GAN, which is short for GameAccountNetwork, is a business-to-business supplier of internet gambling software-as-a-service solutions, predominantly to the U.S. casino industry.

The U.K.-based company’s primary product is a proprietary internet gambling enterprise software system, GameSTACK. The product is designed as a solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual simulated gaming.

See Also: 4 Stocks Poised To Breakout With The Return Of Live Sports

GAN's Perfect IPO Timing 

With limited issues coming to the market and the investing world always hungry for IPOs, GAN was the center of attention on May 5. More importantly, the performance of industry peer DraftKings DKNG since its debut as a public company was fresh on investors’ minds.

On the day prior to GAN's IPO, DraftKings closed at $20.99, which was a 16% gain in a short period of time. It should be noted that DKNG is approaching $40 in Thursday’s session.

Gan Heads Straight Up From Opening Print

Gan has never traded lower than $13. Its initial surge took the issue to nearly $16, but gave investors a few chances to purchase shares under its closing price on day one ($13.51) on May 13 and 14.

Earlier in Thursday's session, it reached $20. The stock was trading 11.59% higher at $18.39 at the time of publication 

Gan Moving Forward

Based on the price action of DraftKings, it seems foolish to try and pick a top in the issue. For investors wanting to purchase shares of GAN, it will not be an easy task.

It did give investors a second chance after its IPO, so the best idea may be to wait for a couple down days in the issue — if and when that happens — to begin accumulating shares.

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