How undervalued are shares of B2Digital Inc (OTC US:BTDG) right now?
The stock is trading at a market cap of less than $2 million after a 70% decline in the past month, but sales are powering higher, estimated to come in this year at more than twice the stock’s capitalization after a string of strong quarters over the past 18 months (1).
After being crushed, growth stocks on the Nasdaq still trade at as much as 10-15x sales, yet many may have less cause to claim reliable and tangible growth when compared to BTDG, a sports entertainment penny stock that trades on the OTC as essentially the main farm league to the UFC in the MMA space (2).
The company has shown solid growth over the past two years, with triple-digit percentage growth in most of its core metrics, including revenues, during that time, and appears to be expanding at its fastest pace ever so far in 2022 as it stretches its footprint out with licenses to hold MMA events in many new states through its B2 Fighting Series (“B2FS”) brand (3).
The company also has a training and fitness arm that has expanded by triple-digit numbers over the past year, with plans to dramatically accelerate that pace of growth, according to its communications materials.
On the event side, BTDG is holding new MMA spectacles nearly every weekend, distributing the content over pay-per-view, Apple TV, and Amazon Fire TV for those who can’t come in person.
But this weekend (Saturday, May 14), there’s a new wrinkle that could potentially drive significant interest in the stock: It is filming the event – “B2FS 161” – entirely on Apple iPhone 13 Pro Max mobile devices (4).
One is given to wonder if this step is being taken as part of a promotional process. Hmmm.
An Apple a Day…
According to the company’s most recent release, the B2 Fighting Series is headed for Cedar Rapids, Iowa, for B2FS 161 Saturday night. And, as noted above, the entire event will be shot exclusively on Apple iPhone 13 Pro Max mobile devices for the event.
B2Digital Inc (OTC US:BTDG) notes that seats for the event are already nearly sold out. It also suggests that an experiment is underway: B2FS 161 will not be live streamed over PPV or over the B2 Fighting Series apps on Amazon Fire TV or Apple TV. Instead, the Company is testing a new distribution process whereby a full production movie of the entire event will be released following the production process over social media.
The iPhone 13 Pro Max has become something of a phenomenon in the media space, with music videos and motion pictures being shot with full production value on the devices without losing quality in comparison to traditional industry standard motion picture camera technology.
You can see the advantage if you think about it: a standard camera rig used for full production motion picture shooting is a big bulky piece of technology. That size and weight limits how you can shoot. Rigs can be mounted on cranes or wire harnesses or mobilized on tracks or carts. But an iPhone can be strapped to a performer’s chest or forehead and tucked into a small space (5).
For an MMA event, that means more interesting and more intimate angles, allowing fans to basically be in the cage or the corner. The possibilities are endless.
The Big Night
B2FS 161 also looks set to be a strong event for B2Digital Inc (OTC US:BTDG). After all, it doesn’t matter how you film something if you don’t have something remarkable to film.
According to its release, Saturday night will feature two spectacular pro matchups and six fascinating amateur bouts between up-and-coming future stars. The main event of the evening pits Juan “And Only” Roman (5-2-0) in a 155 lbs. battle for respect and future status against Chance Beck (7-3-0), who comes off a first-round verbal submission victory in his last bout.
Fans will also be treated to the B2FS Heavyweight Championship bout between Cody “The Macktrucck” Baker (4-2-0) and Quentin Campbell (4-4-0), who comes in on a streak, with two straight KO’s (6).
“This Saturday night, we will be mixing it up and trying out some new technology, a new production process, and a new angle on distribution of our tremendous content to spotlight the amazing raw MMA action that happens each week inside the B2 cage,” commented Greg P. Bell, Chairman and CEO of B2 Digital. “We are always excited to experiment with new processes, innovations, and technology. Apple’s new iPhone 13 Pro Max is a revolutionary device with some game-changing tech. It’s also a great night to capture that content. Our fight card is stacked in Iowa this weekend and will feature some incredible action.”
The stock has been hammered over recent weeks along with most of the market (7). But the numbers identify BTDG as a growth play given its topline metrics over recent quarters.
As a small OTC name, the bar is high for driving fresh excitement. However, the underlying fundamentals for B2Digital Inc (OTC US:BTDG) are pointing in the right direction, and this weekend’s event holds the potential to spark some fresh attention given its iPhone gambit.
And who knows? Perhaps there’s more to this story.
References:
1. https://www.otcmarkets.com/stock/BTDG/security
2. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html
5. https://nofilmschool.com/iPhone-vs-pro-camera
6. https://www.tapology.com/fightcenter/events/87790-b2-fighting-series-161-iowa
7. https://www.vox.com/the-goods/2022/5/10/23065007/stock-market-crash-bitcoin-price-inflation
