Investors Are Fed Up With PENN: Still A Value Play And Now A Potential Activist/Buyout Target


  • PENN Entertainment disappointed investors with earnings missing expectations for Q4 and a surprisingly rocky start with losses for the new ESPN BET app.
  • PENN has recently found itself locking horns with HG Vora, a New York hedge fund that owns an 18.5% economic interest in the company.
  • After Q4 earnings, this is likely to escalate.
  • ESPN BET has had a rough start, but share price performance from countries like Ireland and Australia shows that sports betting is a great long-term business.
  • Despite its well-publicized problems, PENN trades under book value and looks sufficiently priced to compensate investors for their risk.
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David Baileys

PENN Entertainment, Inc. (NASDAQ:PENN) took another beating after the company’s Q4 earnings report missed expectations. For long-suffering investors in the stock, it was another disappointment- with the cash flow from the company’s profitable casino assets overwhelmed yet again by losses in

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PENN, FLUT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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