To the Editor:
Few things have lost investors more money than focusing on total addressable market (“The $22 Billion Wager,” Cover Story, Feb. 11). Yes, online gambling is a growing industry, but it’s also very crowded, and none of the companies has anything proprietary to keep the competition at bay. As mentioned in the article, these companies, in order to generate sales, must spend heavily on advertising and offer subsidies to entice users to their platform. I would avoid these speculative names at all costs.
Chris Bentsen, on Barrons.com
To the Editor:
No matter how high tax collections go, my home state of New York is always seeking new sources of revenue. That Albany has embraced sports betting is therefore not a surprise. Yet the hypocrisy of the politicians who for years railed against Big Tobacco is distressing to ponder. Gambling destroys lives far more quickly than smoking.
J.E. Frenett, Spencerport, N.Y.
To the Editor:
Let’s not roll back the clock to people betting with illegal bookies. Sports gambling is here to stay, and we have to figure out how to minimize the effects of problem gambling. As for investing? Good luck picking a winner.
John Boysen, on Barrons.com
Digital Addictions
To the Editor:
Why do Americans need government agencies to stop them from doing stupid things? (“Brokers, Casinos, and Social Media Are Reconditioning Our Brains—Turning Us Into Digital Addicts,” Feb. 11). People need to accept the consequences of their actions.
Paul Barrese, on Barrons.com
Smarter Bets?
To the Editor:
I own a basket of gambling stocks, plus the Roundhill Sports Betting & iGaming exchange-traded fund (“DraftKings Isn’t the Best Way to Play the Online Gambling Boom. Buy These 6 Stocks Instead,” Feb. 11). I own almost all of the ones mentioned here. I started investing in the online gambling boom in summer of 2019. My biggest winners are the companies behind the scenes, such as International Game Technology and Scientific Games, where I have gains of 267% and 318%, respectively, even after big pullbacks. A company like IGT runs state lotteries, builds and licenses slot machines, etc. These are good diversifiers in the gambling space. I agree with the comments on MGM Resorts International. I bought that in the teens and another stack around $30, and every time it dropped under $30, I bought more.
Donald Rumery, on Barrons.com
Due Diligence
To the Editor:
At best, this is a potential shopping list that would need a multitude of both financial and technical metrics to determine what to buy and when to buy (“Barron’s 100 Most Sustainable Companies,” Feb. 11). And with today’s inflation, interest-rate pressure, growth vs. value, and market volatility, you need to be very careful of your selection.
Best wishes to everyone going forward. Do your homework before spending your money.
Frank Paton, on Barrons.com
To the Editor:
As an Intel shareowner, there is little satisfaction in seeing the company ranked No. 1 on this list. While Intel has lost some momentum in a very competitive industry, the future remains promising. It will require Intel’s leaders to focus on its business—not on 230 environmental, social, and corporate governance, or ESG, performance indicators. Profitable and inventive companies are positive assets to their communities without the need for ESG mandates.
Walter Beiter, Chesterfield, Mo.
Chip Shortage
To the Editor:
I winced while reading “The Chip Shortage Will Linger. These 4 Stocks Are a Good Way to Stay Protected” (Tech Trader, Feb. 11), which summarizes the devastating effects of the chip shortage, especially in the auto industry.
The irony is that the same folks who trumpet the organizational capabilities of U.S. companies while ridiculing large government management are myopic when seeing the fundamental leadership failures that produced today’s chip shortage.
An exceedingly generous corporate tax cut was passed with claims that it would increase needed capital expenditure. Instead, corporations bought back stock, hoarded capital, and never prepared for increased chip production.
Rather than hold responsible those who fumbled the opportunity, the business community looks to the substantial delays and massive revenue losses as if they were unexpected acts of God.
Tom Routliffe, Wakefield, R.I.
To the Editor:
I was interested in last week’s discouraging report on the growth in demand for semiconductor chips and the inability of the industry to meet it.
While Eric J. Savitz shared with us the longer-term bad news for auto makers such as General Motors and Toyota Motor, left unsaid was what this might mean for chip hogs like Tesla. Will those companies and others like Ford Motor be able to meet their dreamy-eyed production predictions for 2023-24?
It sounds to me as if “green” hopes for electric vehicles are going to be dashed.
As for investors, considering the huge demand across every industry serving modern life, buying “chips and dips” might be the best stock market play out there for the next few years.
Thomas V. Ward, Cumberland, R.I.
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