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Should you buy Pointsbet shares in November?

The Pointsbet Holdings Ltd (ASX: PBH) share price has nearly doubled in 2019, with the Aussie bookmaker’s shares rocketing 94.17% higher in what has been a bumper year for shareholders.

October was no exception, as the Pointsbet share price climbed 19% to $4.33 during the month.

So is it too late to jump in, or is November the best chance you’ll get to buy?

Why Pointsbet shares climbed higher in October

The Pointsbet share price climbed from $3.68 per share to $4.72 per share in the space of one week after the release of 2,639,654 shares from mandatory escrow. There were no market-moving announcements by the group in early October but Pointsbet shares still shot 28.26% higher in the space of a week.

Pointsbet shares finished the month with positive momentum at $4.33 per share by Friday’s close.

This was despite the wagering company entering a trading halt ahead of an equity raising announcement. Pointsbet told shareholders it was seeking to raise $122.1 million split between an institutional placement and entitlement offer.

The $60 million entitlement offer was fully underwritten, while the 1-for-6 accelerated pro-rata renounceable entitlement offer made up the rest. Pointsbet’s institutional Offer Price was at $3.60 per share while shareholders were offered $3.20 per share for the entitlement offer.

The Pointsbet share price climbed 3.59% higher on Friday as it returned to trading on the ASX with investors believing the shares are worth more.

Should you buy shares in November?

Pointsbet is on a roll at the moment and could be set to climb higher in 2020. The company’s Q1 2020 update indicated strong growth prospects and the equity raising could be the key to releasing that potential.

With $122.1 million of fresh equity to work with, management could deliver a strong first-half result in February 2020.

I’d personally be waiting until those results before evaluating whether Pointsbet is the real deal amongst the ASX growth stocks.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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