Near-term Investment Opportunity - Anthony Davis
Anthony Davis was the number 1 pick in the 2012 NBA Draft. He’s only 26 years old and full of potential. But, injuries and his team situation have kept his valuations in check. Injuries will always be a concern, but his cards have near-term upside. Why?
Let’s say he stays in New Orleans. With Zion on his way, New Orleans and Anthony Davis will get a ton of attention. Everyone will want to see them play. Stands to reason that New Orleans will get more national TV exposure. If Zion lives up to the hype, they’ll make an incredibly exciting pair.
Let’s say he gets traded. He’s likely to get traded to a big (or at least bigger) market team - New York, Los Angeles, Boston?? A trade to any of those teams will surely increase his fan base. A bigger fan base will lead to bigger demand for his rookie cards.
Let’s look at the potential for Davis’ 2012 Panini Prizm autograph card. The 2013 Giannis Antetokounmpo Panini Prizm might be a good comp. As most of us saw, the Giannis BGS 9.5s were trading at close to $2000 during his playoff run. If you compare the BGS populations, they are roughly the same.
It’s not hard to imagine the demand for Anthony Davis cards to increase over the next season. His auto cards have plenty of potential. Will they reach $2000? Hard to say, but they’ve been available for ~$400 recently.
And how about the potential of Anthony Davis’ non-auto Prizm rookie cards? Check out the differences in populations. And then keep in mind that Giannis 9.5s are trading for about $400 and Anthony Davis cards are trading for $125-$150.
All of this points to a good near-term investment opportunity. Could Davis be a good long-term investment? Maybe, but injuries are a concern.
Thoughts?