April 8th 2021

Bringing
wall street to
main street

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Penn National Gaming

"So, I have sex. People f#cking know that... everyone should f#ck the dip.” - Dave Portnoy, after sex tape leaks...

Benzinga source

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Yes, the stock dipped on Tuesday but it's been in a downward trend since Deutsche's report on March 29th.

The Street source
GIF source

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Deutsche Bank said New York wouldn't include sports betting in the FY21 budget which sparked sell-offs across the industry.

The Street source

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Penn National is aggressively lobbying for new sports betting opportunities in New York.

Fool source
GIF source

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Credit Suisse then reported mid-day Tuesday, April 6th that sports betting would be included in the budget. This helped $PENN recover.

Benzinga source

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Details on New York's approval came out on Wednesday April 7th with mixed reactions. Only a few operators will be chosen and 50%-55% of their profits will go to the state of New York.

PlayNY source

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Needless to say, I don’t think Portnoy's sex tape would sink the ship. It's more likely to be a legislative move or missed earnings that'll pop this bubble.

GIF source

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Draftkings rallied 3% in Tuesday’s session off the positive NY news and fell Wednesday following Cuomo's details.

Benzinga source

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Another competitor, MGM Resorts, recently beat expected earnings and announced that it plans to double revenue in 2021 from their BetMGM app.

Investors source

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Penn National will need to prove to the market that they can grow market share and beat earnings expectations. They missed Q4 2020 earnings by 66%.

Yahoo Finance source

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$PENN

$PENN stock has been rocket ship since the Barstool deal - climbing over 845%! Over this time revenue collapsed and Earnings Per Share turned negative.

Yahoo Finance source
GIF source

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$PENN

They've improved their Gross Margin % though, which means they’re finding ways to spend less per dollar they bring in.

Morningstar source

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$PENN

The technicals show 5 BUY indicators and 11 SELL indicators on the daily timeframe. Let's wait for a further move down to find an entry.

TradingView source

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$PENN

The P/E ratio is currently 49.14 while MGM's is coming in at 13.41 and Ceasars has a P/E of 20.02. There's higher risks associated with higher P/E ratios.

Bloomberg source
GIF source

By: Brian Kilpatrick

A Proud Partner of Business Web Stories

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KILPATRICK

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