Pinnacle Entertainment, Inc. (NYSE:PNK)

short watch

Move over LVS. It's now my turn to be King.

The make their money by getting people to gamble on games favoring the house, but when it comes to their shareholders, they make sure the odds favor the shareholder?

Pinnacle Entertainment, Inc. (PNK)
The Company is a developer, owner and operator of casinos and related hospitality and entertainment facilities.

Currently, PNK is 26% off its 52W high, but up 100% from its Nov. 2008 low.
I like this stock's chart a lot.
Definitely, my kind of value play.

This latest CEO change seemed to be a required step in bringing a bit of order to the chaos of gaming.

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.

86 P/E. They are not paying off debt but aquiring more and they can't even pay the interest they currently have. Also, it jumped 30% today so as good a time as any to short this one.

Pinnacle Entertainment is a company that does what few companies in the gaming industry seem to do outside of Las Vegas, They reinvest in themselves and put the customer IE the Player first. Through their continued effort to reinforce Customer Service Relations and Exemplary Service at all levels, they set the goal for others to follow.

top 20 stocks to sell (10/6/08 LN)

I'm by every sense of the word an amateur at investing. For the most part, investing is something I do on a simulator. My inexperience being noted, I try to make up for that with what seems to make sense to me.

- This company is growing, and their shares are cheap. They are growing in areas that have much less competition than the traditional gaming meccas.
- Yes, the economy is in a recession but that won't last forever and it seems to me that the knee jerk reaction of most people is to go out and recklessly spend after suddenly earning it. And after all, why fly all the way to Vegas when so many people are within driving distance of a casino and can skimp out of a plane ticket.
- The FY '09 earnings are estimated to be nearly 400%
- The house never loses in the long run...I just had to say it.

http://seekingalpha.com/article/83999-pinnacle-more-attractive-than-its-vegas-peers?source=yahoo

http://moneycentral.msn.com/investor/invsub/analyst/earnest.asp?Page=EarningsGrowthRates&Symbol=PNK

Creating a portfolio based on calling outperform on every alcohol, tobacco, pornography and gambling stock I can find.

gaming

Pinnacle Entertainment is a gaming company that owns and operates six casinos and is currently building four more (MSN Money). Gaming stocks are attractive right now as most of them are down around 40% in the current year. Among gaming stocks, Pinnacle has a relatively low debt/equity ratio of .80. Also analysts predict that earnings per share will increase over the next two years.

In short, Pinnacle Entertainment is attractive right now because share price has taken a significant hit in recent months, the company has a low debt/equity ratio, and they are expanding there operations.

Possible risk includes recession in areas of operation leading to a decrease in revenue.

As of close of business on 2/20/08, this was a 5-star Morningstar stock trading at less than half of its Morningstar fair value.

A guaranteed $70 stock by 2011. Will easily outperform the s&p.

To expand on Luckless Wonder, I disagree. The 'finest property manager' probably won't launch the AC project due to his review for violating company policies which will effect his approval for a gaming license.

HERE TO STAY

Highly leveraged and excessive non-producing assets in pipeline. Some projects (Sugarcane Bay) are risky.

I work for one of PNK's competitors in the SW Louisiana market. I see a lot of press coverage of their local property, L'Auberge du Lac (LDL), and hear their advertisements frequently.

PNK has been very aggressive in the local market since opening in May 2005, and particularly in the wake of Hurricane Rita. They bought out Harrah's damaged properties in Lake Charles and sold Harrah's their damaged properies on the Mississippi coast. This is great for both companies, as it allows HET to increase their presence in that market while making PNK an even bigger player with a great location. (Lake Charles is the first casino market between Houston and the Mississippi coast.)

LDL is currently doing something that I think is a bit curious. They recently launched a discount program for locals, and their current local advertising focuses not on their promotions but on human-interest stories involving their associates. I don't know if these ads run in Texas or just in Louisiana. But I find it odd that the dominant player needs to resort to such image-building efforts.