Stockhead’s Grand Final Guide: Which ASX stocks are looking for a big kick this weekend?
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If you thought the grand final winners could only be two of the four teams playing this weekend, there are also a number ASX stocks that could benefit from this weekend’s Festival of the Boot.
It’s been a tougher than usual year for many stocks – and citizens – especially traditional broadcasters and bricks and mortar retailers.
Some Australian states have got through… okay. Others are still waiting to grind back into action. Maybe a solid dose of celebratory bonding while watching a bunch of guys fight to keep possession of an inflated bladder for an hour or two spark a bit of life – at least for 24 hours – into a few stocks that have done it tough in 2020.
The list ranges from broadcasters bringing the NRL and AFL grand finals game to you, to companies that will make your night/s more memorable.
Advertising revenues from grand final night are among the most lucrative all year and both stocks will enjoy the sugar hit.
In 2020 Seven has more than halved, but Nine is up 19 per cent despite dropping during February and March.
While both stocks saw a fall in advertising revenues and are undergoing strategic transformation, Nine was helped somewhat through its ownership of streaming service Stan that between it and Nine Now delivers nearly half of its earnings.
One stock that has delivered in the NRL grand final and been a winner in the past is the Brisbane Broncos (ASX:BBN). But it won’t this year because the Broncos were rubbish, winning only three games.
Shares lagged for much of the year but did gained since their season finish.
If you can’t make it to a screen there are two radio stocks that will broadcast at least one of the big games for you.
Another is Pacific Star Network (ASX:PNW) which runs the Melbourne sports station 1116 SEN as well as the AFL Record.
Earlier this week, SEN launched a sports radio station in Sydney taking the 1170AM dial over from 2CH, although it will start without rugby league broadcasting rights.
Both Southern Cross & Pacific Star have declined in the last 12 months as businesses cut their radio advertising spending.
Southern Cross fell 61 per cent while Pacific Star fell 14 per cent.
One popular place to watch the grand final, other than at the ground, is at pubs or casinos.
Large caps include Star Entertainment Group (ASX:SGR) and Crown (ASX:CWN). While the former stock runs a Sydney casino, Crown pundits will have to wait another couple of months for it to open its own on the other side of Darling Harbour.
Rounding out the list is SkyCity (ASX:SKC), which could reap a greater benefit than its peers. This is because its New Zealand casinos having no social distancing regulations right now.
Whether there are Aussies brave enough to ask the bartender to switch the AFL on in numbers that will move the needle on SKC’s stock price is very much up in the air…
Other stocks that could get a welcome boost from the grand final are already in decent shape.
The latter stock is more well known for its success in the American market, but it is the AFL’s official wagering partner this year.
It’s a good month or two for betting stocks, with the Cox Plate being run this weekend, and several other big Group 1 races leading up to the one That Stops A Nation on November 3.
A number of stocks are helping people watch the big game from home.
During the COVID-19 period as people who chose to use lockdowns to spice up their homes in anticipation of the day guests could be welcomed once more.
Okay, that’s a bit of a stretch. But there are arguably few better times than grand final night to showcase what you’ve been doing during lockdowns. Right? Right?
Booze? It’s one of the biggest days of the year for drinking stocks.
Wine lovers have wine sellers Treasury Wines Estates (ASX:TWE), Australian Vintage (ASX:AVG) and Digital Wine Ventures (ASX:DW8); while beer lovers have Gage Roads Brewing (ASX:GRB) and Broo (ASX:BEE).
The biggest winner in 2020 is Digital Wine Ventures which is a wine-selling platform that capitalised on both the ecommerce boom and the booze boom.
Other stocks have felt the pinch in 2020 of pub closures and in Treasury Wines Estates’ case, trade tensions with China. Get a round in tomorrow and help them out.
And there’s nothing more inspirational than a big game for all the dads to suddenly note it’s time to get a bigger TV.
The former stock is up 50 per cent in 12 months while the latter is up over 200 per cent – again thanks to their online presence enabling them to jump on the ecommerce boom.
Have a great day.