Wall Street Wednesday

We here at Barstool Sports have made it an integral part of our business plan as of late to dole out our opinions and predictions for just about every major sporting event you can find.

And when we run out of big events to bet on, we'll even resort to seedy underworld of professional marble racing to fill our need to prognosticate.

One thing we don't do here at Barstool is hand out financial investment advice... Without a proper compliance department and with an active parent like Chernin, it just seems that whatever rudimentary ideas we might have on where to invest is not worth the risk of any kind of scrutiny when disseminating it to the public.

However, we are more than allowed to relay PUBLIC INFORMATION and right now seems like a pretty good time to tell you guys about a stock that has recently been put on my radar... Penn National Gaming.

It's listed on the NASDAQ under the symbol PENN.  It closed last night at $26.21/share and that was up a healthy 3% on average volume (ADV on PENN is ~1.2 million shares a day).  

The stock's robust outperformance Tuesday was on a day where the broader markets rebounded slightly (yesterday, the S&P was up 1%, NASDAQ up 1.5% and the DOW up 66 bps) after Monday's terrible start to the week, which was chalked up primarily to global concerns surrounding the climbing Coronavirus-related death toll.

But enough about death tolls... Let's get back to talking about this wonderful company... 

Based out of Wyomissing, PA, Penn National Gaming started out as nothing more than a small horse track 20 miles outside of Harrisburg, PA some fifty years ago, and now they have grown to Gaming/Hotel company with a $3 billion market cap… Certainly not the biggest Gaming stock I know of, BUT it’s undoubtedly North America’s Largest Regional Gaming Operator.

What does that mean? 

Well.  It means (according to its website) PENN owns, operates, or has ownership interests in gaming and racing facilities and video gaming terminal operations throughout the continent. 

As of September 30, 2019, the company operates 41 facilities in 19 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, and West Virginia. 

In aggregate, Penn National Gaming operates approximately 50,500 gaming machines, 1,300 table games, AND 8,800 hotel rooms.  And the Company also offers social online gaming through its Penn Interactive Ventures division.

So a national footprint and ownership in recognizable brands like Tropicana, M Resort, and Hollywood Casinos, Gaming Centers and Raceways.

For a full list of their locations, I invite you to visit their website below...

If anyone has any questions about the stock itself, according to PUBLIC INFORMATION it seems well covered by a large handful of capable analysts.

In fact, based on 8 analysts offering recommendations for PENN in the last 3 months (including BofA, JPM, MGS, DBK, etc), the stock is rated a consensus STRONG BUY with an average target price of $28.40...  Which, according to my calculations, is over 7% higher than where the stock closed last night.  MEANING people A LOT smarter than I think this thing might still have some room to run, I suppose.

If you care to read an interesting article on PENN and some of its competitors, I am attaching a well written and informative article from NASDAQ.com written last month with an enticing title...

And for those who don't enjoy clicking on links, here's just a snippet from the attached article…

… Penn National Gaming offers a possible hedge in this sometimes wild industry. Here’s what I’m talking about.

As a regional gaming operator, the company doesn’t have the big bills associated with international casinos. Therefore, PENN stock limits its geopolitical risk, especially if the trade war talks go awry.

Like I said before, I don't like to make predictions when it comes to stocks, but that little blurb sounds like a PUBLICLY DISSEMINATED positive data point in a day and age where we are assassinating Iranian generals, taking part in Mexican standoffs with the Chinese government, or trying to avoid a deadly overseas airborne virus.

Anyhoo… I just found this stock interesting enough today to highlight it for y'all.  I'll keep my eyes open for any PUBLIC news that may come down the pipe.

Have a great trading day, and take a report.

-Large