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Spartan Trading



Disseminated on behalf of ESE Entertainment Inc


ESE Entertainment Inc – $ENTEF

This communication is not an offer to buy or sell securities nor is it to be construed as personal investment advice. Nothing contained in this communication should be relied upon as a promise or representation as to future performance.

For this Quarterly In Depth Investment Analysis I am going to be focusing on a sector that I do not normally cover – the gaming and esports industry. 

I am extremely excited to share this name with the Spartan Community. I have been searching for forgotten companies that have a great business model, strong management team, strong financials and are in a growing sector that have a huge disparity between the price of the stock and the state of the business.

I have met with this companies CEO, looked at the landscape and received great insight into the pipeline going forward and, in my opinion, believe this name should have a 200-300% upside target (medium term) as more people become aware of the name.

So, why the gaming and esports Industry? With the proliferation of online gaming communities and the rise of competitive esport tournaments, the demand for solutions that enhance user engagement, data analytics, and augmented reality experiences is at an all-time high. 

These industries have evolved into multi-billion dollar sectors, driven by a surge in digital entertainment consumption and a need from large, established Fortune 500 brands, to find new and innovative ways to gain brand exposure with younger demographics.

ESE Entertainment Inc (ESE) is strategically positioned to capitalize on this burgeoning market by offering leading video game developers, publishers and brands with innovative technology, infrastructure, and fan engagement services on a global scale.

This comprehensive investment thesis delves into ESE’s strategic advantages as a tech related growth name, focusing on it’s market opportunity and growth potential, strategic partnerships, strong financial performance and undervaluation relative to it’s competitors.

As investors seek exposure to high-growth markets and disruptive technologies, $ENTEF stands out as a hidden gem with a promising future ahead.

Spartan’s Technical Analysis

ESE Entertainment Inc (OTCQX: ENTEF; TSXV: ESE)

  • Idea: Long $ENTEF $0.04 – $0.06
  • Target Area (Short Term): $0.20
  • Target Area (1 – 2 Months): $0.40 – $0.58+ 
  • Stops: $0.01 (or treat as a lotto as very minimal down here in my opinion)

  • Float: 40.15M
  • Shares Outstanding: ~81M
  • Insider Ownership: 30.07%
  • Strategic Investors & Management Ownership: 20M
  • Free Trading: ~20M (less strategic investors & management)
  • Market Cap: 4.028M (USD) 5.268 (CAD)
  • Warrants: First Level at $0.70

$ENTEF Long Term Idea. Beaten down name with a tight float. Key reclaim will be the short term level of $0.20. I will be looking for a quick move towards the $0.40 – $0.47 level and then a grind higher after some consolidation there.


Global Gaming & Esports Market

Global Gaming in High Demand:
The global video game market size was estimated at $217.06B in 2022 and is expected to grow at an annual growth rate (CAGR) of 13.4% from 2023 to 20301. Globally, there are over 3 billion video game players, and by 2030 the global game market is expected to have grown to a value of over $400B USD2. North America is expected to hold the largest market share of the esports global market with an estimated value of $0.5B USD in 20233.

Capitalizing on Global Gaming Growth: 
The growing trend of live streaming of games, gaming investments, rising viewership, ticket sales, and demand for league tournament infrastructure are just some factors influencing esports market growth. 

Large brands and Fortune 500 companies are also looking for new and innovative ways to capture the attention, viewership and gain brand recognition among younger demographics.

$ENTEF capitalizes on this by providing a specialized range of services to leading video game developers, publishers and brands by owning, operating, and monetizing their own ecommerce channels, sports teams, and gaming leagues

Example of one of ESE's Production Studios

360 Marketing Solution – Chosen by Fortune 500 Brands: 
ESE’s 360 marketing solution has helped to not only attract tier one customers, but retain then. Their unique 360 marketing solution enables ESE to be paid directly from the publisher (i.e. EA Sports, Ubisoft, Google etc) and assist the publishers in not only marketing the product through online / offline events, but by bringing in new users and connecting sponsors to the communities and ecosystems ESE creates.

The unique marketing solution between developers, brands and audiences has enabled $ENTEF to continue to grow its revenue quarter-over-quarter while creating multiple additional business growth and expansion opportunities.

Example of the ESE Clients / Brands (Source: ESE Corporate Deck)

It is clear that in working with many larger and recognizable names this presents an opportunity for significant growth going forward. Contracts with Fortune 500 companies are extremely impressive for such an organization with such a low market cap. This is almost never seen in any industry.

Market Opportunities: Partnership & Middle East Expansion 

Metapro Partnership – Tapping into Crypto & Blockchain Markets: 
ESE’s partnership with Metrapro and its subsequent expansion into the Crypto and Blockchain Markets further amplifies its executive teams forward-thinking approach. The integration of cryptocurrency wallets into gaming platforms not only diversifies ESE’s revenue streams but also opens doors to new monetization models and digital asset exchanges within virtual ecosystems. Leveraging blockchain technology to empower gamers and creators while tapping into the growing decentralized finance (DeFi) space will assist ESE in standing out within the ESports sector.

ESE Middle East Expansion: 
ESE is extending its footprint in the Middle East with the planned opening of a Dubai office, emphasizing ESE’s commitment to tapping into gaming’s fastest-growing region in the world. The Middle East has seen investments from the Savvy Games Group, a company which is owned by Saudi Arabia’s Public Investment Fund (PIF), totally nearly $40B, and ESE wants to leverage its expertise and services to increase sales in this region.

ESE Ownership in GameAddik: 
$ENTEF is a 30% owner in the technology asset GameAddik, and a partner with BlackPines Capital, the family office of Darren Huston. Mr. Huston was the past CEO of Booking.com (NASDAQ: BKNG) and the current Chairman of Skyscanner. ESE earns revenue directly from GameAddik and is compensated for acquiring new users (paid per user) in addition to earning money for marketing efforts around Game Addik. This strategic partnership enables ESE to earn additional revenue without the full overhead of managing and directly operating GameAddik (a previously divested asset, sold for $9M in 2023).

Comparative Analysis: Significant Upside

When comparing $ENTEF to its closest competitor, Over Active Media (OAM), several key metrics highlight ESE’s superior positioning and growth prospects.

Revenue & Profitability: 
OAM reported revenue of ~$15.0M CAD (TTM), with a net loss of -$41.5M CAD, While ESE boasts audited revenues of $58M (TTM) and a net break-even position. This significant disparity underscores $ENTEF stronger financial performance and path to profitability.

Market Capitalization: 
Despite $ENTEF robust financials and strategic partnerships, its market capitalization stands at $4.028M USD, significantly lower than OAM’s market cap of $43.5M USD. This valuation disconnect presents an attractive investment opportunity for discerning investors, considering ESE’s revenue-generating capabilities and growth trajectory relative to its market value.

Growth Potential: 
ESE’s expansion into high-growth markets such as Crypto and Blockchain, coupled with its strategic partnerships and diversified revenue streams, positions the company for exponential growth. In contrast, OAM’s narrower focus and weaker financial performance limits its scalability and market competitiveness.

Risk Reward Profile: 
$ENTEF offers investors a favorable risk-reward proposition, with strong fundamentals, a robust pipeline of partnerships and a clear path to profitability. In contrast, OAM’s higher market capitalization relative to its revenue and profitability metrics may present greater downside risk, particularly in volatile market conditions.

$OAM.V (a direct competitor) in a worse financial position than ESE (lower revenues and profitability)
and recently ran up 550% from lows at the peak in 2024 (in just two and a half months).

Significant Upside – Aggressive Growth for Takeout 
With the esports market continuing to grow each year, not only do I feel that $ENTEF is significantly undervalued, with ESE’s aggressive growth aspirations I see additional upside as they begin to chip away at their competitors market share (and/or acquire or be acquired by competitors in the space).

Examples of competitor valuations:

    • Playmaker Capital:~$110M
    • ESL Faceit Group: ~$1.5B
    • Keywords Studios: ~$2.1B
    • Score Media & Gaming: ~$2.5B

Financial Landscape: Valuation & Structure Summary

Valuation Disparity: 
$ENTEF market cap of $4.028 million is indicative of an undervaluation in the market. This sets the stage for an opportune entry point for investors, especially when compared to the competitors identified above.

Capital Structure Strength: 
The tightly held shares, insider ownership at 30.07%, with strategic investors and management ownership sitting around ~20M Shares, highlight insiders confidence in $ENTEF and it’s potential for growth. 

2023 Financial Highlights: 

    • Overall Revenue of $19.10M CAD
    • GameAddik asset reported $19.47M CAD in Revenue and $5.38M CAD Gross Profit, affirming the strategic value of ESE’s ongoing 30% ownership position.
    • Significant improvement in Q4 2023 operations, with earnings per share of $0.00 (compared to Q4 2022 earnings per share of -$0.23).
    • Cash on hand: $2,125,251 CAD (compared to $812,220 Fiscal 2022).

This is a significant improvement in earnings and all the signs are pointing that they will be heading towards profitability sooner rather then later. These financial improvements have yet to be reflected in ESE’s market cap. As noted above, ESE competitors, who are loosing +$40M a year, dwarf ESE’s market cap despite being in a much worse financial position. That said, I feel that it is only a matter of time before the market adjusts accordingly.


ESE Entertainment Inc. represents a compelling investment opportunity in the dynamic gaming and technology sector. With its innovative solutions, strategic partnerships, and solid financial performance, $ENTEF is poised to capitalize on the rapid growth of the Gaming, Esports, and Blockchain industries. As investors seek exposure to high-growth markets and disruptive technologies, $ENTEF stands out as a hidden gem with significant upside potential and a promising future ahead.

ESE Entertainment Inc (OTCQX: ENTEF; TSXV: ESE)

  • Idea: Long $ENTEF $0.04 – $0.06
  • Target Area (Short Term): $0.20
  • Target Area (1 – 2 Months): $0.40 – $0.58+ 
  • Stops: $0.01 (or treat as a lotto as very minimal down here in my opinion)
Current Idea is a long on $ENTEF (1 – 2 months).
More information on ESE Entertainment Group, including their most recent corporate presentation and materials can be found here.
Best Regards,
Spartan (aka ‘Chris’)
ESE-Entertainment---ENTEF Studio

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