Pinnacle Entertainment, Inc. (NYSE:PNK)

CAPS Rating: 1 out of 5

The Company is a developer, owner and operator of casinos and related hospitality and entertainment facilities.


Player Avatar OldEnglish (28.29) Submitted: 3/30/2009 5:57:24 AM : Underperform Start Price: $6.67 PNK Score: -59.03

80+ PE? Uh... do their slots run on food stamps or something? Who thinks this is a growth business in a depression? Oh, right, CNBC says we'll recover in the latter half of 2009. Sorry, I forgot.

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Member Avatar bigpeach (26.91) Submitted: 4/4/2009 3:11:59 PM
Recs: 0

They are growing. In the year-end report, revenues increased 18% and EBITDA increased 38% year over year. The 80 P/E is the result of non cash impairment charges to things like goodwill which is not a real asset anyway, and capital expenditures on new projects. GAAP earnings are a bad way to value companies with large capital expenditures, or those that take non cash impairment charges.

Member Avatar OldEnglish (28.29) Submitted: 4/6/2009 11:20:48 AM
Recs: 0

All good points.

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