Sitting on a Cash Pile 2.0? Las Vegas is Open for Business


Penn National Gaming (NASDAQ:PENN) is my favorite for online gaming. PENN owns and manages gaming and racing properties, and it operates video gaming terminals with a focus on slot machine entertainment.

Also offers live sports betting at its properties in Indiana, Iowa, Mississippi, Nevada, Pennsylvania and West Virginia, and it operates an online casino under the name of iCasino in Pennsylvania.

As of 16 March 2020, PENN owned, managed or had ownership interests in 41 gaming and racing properties in 19 jurisdictions. It owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Greektown, Hollywood Casino, Hollywood Gaming, Hollywood Poker, L’Auberge, M Resort and MYCHOICE.

Penn Gaming has seen strong initial results in iGaming in Pennsylvania +91% YTD, and profitable but will not really participate in sports betting until the launch of its Barstool Bets branded app. The opportunity for Barstool is converting a portion of its 66-M unique visitors into paying sports betting customers. Analysts estimate if PENN/Barstool is able to trend toward 10-15% market share on a $5-B Y 2021 market at a 6.0X revenue multiple, the sports betting and iGaming opportunity alone could be valued at 25/share.

Our price target is well above the 26.00 consensus target estimate. PENN Gaming ended Monday trading at 34.30/share.

My call is 59.50 long term, as all Key indicators are solid at Very Bullish and resistance is Nil, support is at 27. The stock broke out above the cloud on 15 May and is headed due North.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.