Jumbo Interactive Limited (JIN.ax) is an internet lottery business with operations in Australia and Germany. Currently in an expansion phase, Jumbo has been actively pursuing further opportunities in the USA, Latin America, Asia and Europe. JIN flagship product is the OZLotteries.com which sells real lottery tickets. JIN also operates the JimboLotto.de website that sells lotteries online in all German states.
Jumbo Interactive dropped hugely a few days before, just because it paid upfront a big sum to its client. The long-term re-seller arrangement is good for the company in the long term, although it will negatively affect its profit in the next report. The hugh drop creates a great opportunity to buy the shares at a discount.
This kind of opportunity occurs occasionally. A long-term investor can take this kind opportunity. A recent example is in stock Weimob Inc. (2013.HK) , when. it had a one-time lawsuit on June 22, 2020, it dropped >10%, but recovered a few days later on July 1, 2020.
Jumbo Interactive share price sinks lower on new Tabcorp agreement
https://www.msn.com/en-au/lifestyle/misc/jumbo-interactive-share-price-sinks-lower-on-new-tabcorp-agreement/ar-BB164Vph
Jumbo has made an announcement:
https://www.jumbointeractive.com/uploads/2020/06/150620%20Form%20603.pdf
Jumbo has given an update on the business, the impact of Virus is analysed:
https://www.jumbointeractive.com/uploads/2020/04/010420%20COVID-19%20Update.pdf
Since Jumbo has a policy of distributing 85% of the net profit, it is unlikely for the company to grow fast: too much money is spent as dividend !
The business of Jumbo seems going quite well, it is not clear why the share prices have not followed.