eSports group Gfinity (GFIN) has rather frustrated me since it came to market, but it would appear that the recovery in the share price shows that investors are finally getting with the plot.
What can be seen on the Gfinity share price chart is a rather disappointing trajectory for the stock in the immediate aftermath of it coming to market. It almost seemed as if the company was too far ahead of the curb in terms of (mostly middle aged) investors understanding what it does, and in terms of the timeline on how it would be able to flourish from a profitability perspective. However, things though have changed for the better this year with the arrival of advertising agency MediaCom to turbo charge broadcasting revenues.
It is perhaps just as well that this has occurred given the way that a strong marketing approach looks to be the most obvious way of tapping into the burgeoning eSports sector. Otherwise, especially given the U.S. focus, our friends in the Gfinity Arena Fulham could have found themselves high and dry.
From a technical perspective one can draw a rising trend channel on the daily chart from as long ago as the beginning of 2015. The top of the channel is pointing towards 40p, a target which could be hit as soon as the next 3-6 months. Only back below the floor of the channel currently at 15p would even begin to question the upside scenario.