It's been a rollercoaster start to 2020 for many ASX shares. The most recent bear market saw most shares bottom out 1 month ago today on 23 March.
That includes the Pointsbet Holdings Ltd (ASX: PBH) share price, which slumped to $1.19 per share 1 month ago. However, it wasn't all bad news for ASX shares in the bear market.
Since 23 March, the Pointsbet share price has rocketed higher. In fact, the ASX wagering share closed at $3.38 yesterday – a 184.03% increase in a month.
That's some impressive growth that is hard to beat in the current market. But have investors already snapped up the gains or is there still time to buy?
Why the Pointsbet share price has rocketed higher
Let's start with what happened to this ASX share during the coronavirus-induced market correction. Pointsbet shares slumped 27% lower on 13 March after the United States suspended many major sports.
That includes the NBA, NHL and MLB among other global sports like Formula One. Pointsbet relies heavily on wagering revenues which sent investors running for the hills.
However, those that sold might be kicking themselves right now. The ASX wagering share is up 184.03% from where it bottomed and some savvy Warren Buffett types are reaping the rewards.
There doesn't appear to be one major announcement that has turned the group's fortunes around. I suspect there are some cornerstone investors who are snapping up ASX shares on the cheap and anticipating a post-COVID-19 recovery.
On 25 March, Pointsbet announced that it had been issued an Internet Sports Betting Operator License and a Sports Betting Operator License by the Colorado Limited Gaming Control Commission.
That's a big step forward for the ASX wagering share considering how strict United States wagering laws can be.
While some of the share price surge is surely attributable to that key announcement, it doesn't seem like enough to spark a 184.03% recovery in just 1 month.
Is there still time to buy this ASX wagering share?
I like to invest in ASX shares that I understand inside and out. Whenever there's volatility, I tend to steer clear.
If you're willing to roll the dice on short-term gains then Pointsbet shares could be worth a look. However, if you're buying and holding for the long term, I'd like to see some solid earnings and path to recovery before dipping my toe in.
