PENN

Penn National Gaming Inc

Consumer


Presented:05/07/2015
Price:$15.99
Cap:N/A
Current Price:$18.51
Cap:$2.82B

Presented

Date05/07/2015
Price$15.99
Market CapN/A
Ent Value$2.32B
P/E RatioN/A
Book Value$7.22
Div YieldN/A
Shares O/S79.68M
Ave Daily Vol1,270,000
Short Int10.71%

Current

Price$18.51
Market Cap$2.82B
Penn National Gaming, Inc. owns and operates gaming and pari-mutuel properties. It operates through East/Midwest, West, and Southern Plains segments. The company is involved in gaming and racing operations. As of December 31, 2014, it operated 26 facilities in 17 jurisdictions, including Florida, Illinois, Indiana, Kansas, Maine, Maryland, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

Please note, this idea was presented as part of Regional Gaming; Penn National Gaming Inc (PENN) & Boyd Gaming Corporation (BYD): Long. 

Publicly traded companies mentioned herein: Boyd Gaming Corporation (BYD), MGM Resorts International (MGM), Penn National Gaming Inc (PENN), Wynn Resorts Ltd (WYNN)

Highlights

The presenter is long shares of regional gaming companies Boyd Gaming (BYD), and Penn National (PENN), and believes the industry is finally seeing some green shoots in the wake of the financial crisis. This sector of the economy has been in decline since 2007 - 2008, and appears to be finally starting to turn now. In his opinion, the best way to play a recovery is owning shares of BYD and PENN, as these companies “had to find ways to survive” over the past eight years as consumers allocated spending to other fixed costs, and as a result of significant cuts to operating costs (which are likely permanent) they now have substantially more efficient operating structures. Also, competition has diluted the earnings pools around the US, but there is now a lull in activity that should benefit PENN and BYD, which are the “stragglers”. Both companies have future catalysts working in their favor.

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Idea Discussion

Commentor 1 - 2 weeks ago

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