Simplicity Esports and Gaming: What will happen now?

Simplicity Esports and Gaming is trading at USD 1.75 on the stock exchange on 21.06.2019. The company is listed under “Leisure facilities”.

In a complex analysis process, analysts from our company assessed Simplicity Esports and Gaming based on a total of 5 evaluation criteria. All individual criteria lead to a classification as “Buy”, “Hold” or “Sell”. In the final overall assessment, this results in a general rating of the share.

1st sector comparison share price: Compared to the average annual performance of shares from the same sector (“cyclical consumer goods”), Simplicity Esports and Gaming, with a return of -81.67 per cent, is more than 96 per cent lower. The “Hotels, Restaurants and Leisure” sector achieved an average return of 23.13 per cent over the past 12 months. Here, too, Simplicity Esports and Gaming is significantly lower at 104.8 per cent. This development of the share in the past year led to a “sell” rating in this category.

Relative Strength Index 2: The Relative Strength Index, abbreviated as RSI, indicates the movements of stock prices within 7 days by relating the upward movements to the number of actions. The RSI of Simplicity Esports and Gaming is 56.38, so the situation is considered neither overbought nor oversold. This results in a “Hold” rating. The RSI25 extends the calculation period to 25 days.

The RSI for the Simplicity Esports and Gaming moves at 42.41. This is seen as an indicator for a situation that is neither overbought nor over-sold and is subject to a “hold”. All in all, we, therefore, assign the classification “Hold” to this category.

3rd technical analysis: An analysis of the chart technical development of a stock using the moving average can be used to determine the current trend of a security. Let’s look at the moving average of the closing price of the Simplicity Esports and Gaming share over the last 200 trading days. This value is currently 4.09 USD. Thus, the last closing price (USD 1.75) is significantly lower (difference -57.21 per cent). On this basis, we, therefore, rate the share as a “sell”.

What does this calculation look like if the moving average is determined based on the last 50 trading days? For this value (USD 1.57), the last closing price is above the moving average (+11.46 per cent). This results in a different valuation of the Simplicity Esports and Gaming share, in this case, namely a “buy” rating. The Simplicity Esports and Gaming share is therefore given a “Hold” rating for the simple chart technique as a whole.