Institutional interest in eBet growing

Fund managers have started to "go substantial" on eBet after its stellar run over the past month.

Things are coming together nicely for small cap gaming company eBet (EBT) with the stock surging 37% since Eureka Report’s article on the company ran a month ago.

Since then, small cap fund manager Microequities has bought a 5.07% stake a little over a week ago and market sources told Eureka Report that New Zealand-based Pie Funds Management is trying to “go substantial” on the relatively illiquid stock as well.

Going substantial is to buy 5% or more of available shares in a company as investors with such a large stake are required to lodge a notice with the ASX.

As a point of interest, Pie Funds Management also managed to go substantial on software developer ISS Group (ISS) in the weeks before a takeover bid for ISS was announced.

Another factor that is likely supporting the share price is the initiation of coverage by Veritas Securities.

The broker is urging investors buy the stock with a price target of $1.84 a share as it believes the company will benefit from consolidation opportunities in the sector and is forecasting robust revenue growth in 2014-15 and 2015-16.

eBet and ISS are on the Uncapped 100.