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$33.82 0.24 (0.71%)
8/29/2008 4:00 PM

Penn National Gaming, Inc. (PENN)

CAPS Rating:
***

The Company is a diversified, multi-jurisdictional owner and operator of gaming and pari-mutuel properties.

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What the Community Thinks

Total Members

348 Outperforms
28 Underperforms
 

All-Stars

97 Outperforms
6 Underperforms
 

Wall Street

12 Outperforms
1 Underperforms
 

Members bullish on PENN are also bullish on:

Members bearish on PENN are also bearish on:

Ticker Tags

Casinos (26), Mid Cap (670), Resorts & Casinos (29)
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Penn National Gaming, Inc. At A Glance

Current Price: $33.82
Last Trade Time: 8/29/2008 4:00 PM
Open: $33.29
Previous Close: $33.58
Daily Range: $32.92 - $33.85
52-Week Range: $21.72 - $62.30
Volume: 532,273
Market Cap: $2.87B
P/E Ratio: 18.55
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Stock Trends

PENN VS S&P 500 (SPY)

PENN 12 month chart vs. S&P

News & Discussion Boards

Other News Headlines for PENN

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Top Bull Pitch

Recs

7

Penn National Gaming, Inc. (PENN)

Avatar OutstandingOdds (82.24) Submitted: 4/01/08 1:34 AM

Truly a heads I win, tails I don't lose proposition. Either the deal closes and one earns a 60%+ return over the next 3 months, or it doesn't and one is left owning a piece of a great business at an attractive price.

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Top Bear Pitch

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CAPS Members

picks per page. CHANGE

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Show Pitch Replies

Recs

1

 (PENN)

Avatar TMFBigVice (49.25) Submitted: 8/01/08 12:06 PM : Outperform Start Price: $29.22 PENN Score: 15.28

Chuck Akre of FBR Focus is an investor we admire and he's loaded up 16% of his fund with PENN. He mentioned the company to us back in early 2007 as one of his favorite stocks. It's been a tumultuous eighteen months for PENN, to be sure, first with the private equity deal falling through and then decreased consumer spending hitting the gambling sector hard. But the future looks a lot brighter for PENN than its current stock price would imply. It's to receive $1.45 billion in compensation for the PE deal and that gives the company a whole lotta options in a down market. Judging from the tone of the most recent earnings call, it sounds like management is just now getting back into the mindset of being a publicly-traded company. I guess they were convinced the buyout would go through, so it might take some time for this pick to realize its full value (probably around $30-$33 today), but as the song goes "time is on my side". And on CAPS, we have all the time in the world to let this one ride.

Todd (disclosure: owns FBR Focus)

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Recs

1

 (PENN)

Avatar greenwave3 (90.75) Submitted: 7/06/08 4:08 AM : Outperform Start Price: $30.91 PENN Score: 7.86

Buyout withdrawal is free money for the company and its shareholders. Watch these guys drop a Las Vegas property onto their balance sheet @ $1.25 Billion, thanks to the guys who backed out...

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Recs

2

 (PENN)

Avatar mjan706 (57.58) Submitted: 7/04/08 3:44 PM : Outperform Start Price: $30.91 PENN Score: 7.86


   Patient, long term investors should be able to make a mint from the cancellation of the LBO deal for Penn National Gaming (PENN); the pullback in its stock price ($29.66, June 30); and, the incredible post-LBO financing that should enable PENN to roar back on the charts in 2-3 years.
      
   When the $6.1 Billion or $67.00 per share LBO deal was announced around June 15, 2007, the stock had closed the previous day at $51.14. It popped by 10% to close at $62.12 that day. The nearly $5.00 premium over the close certainly suggested interest in the deal.

   Valuation apparently was influenced by PENN’s strong fundamentals. Sales grew from $1,105 Billion for the year ending 2004, to $1,369 Billion (23%) ending 2005 and $2,244 Billion (38%) ending 2006. Although net profits were flat, $87 Million for years ending 2004 and 2005, they grew to $213 Million (144%) ending 2006. The prospects looked good at the time.

   PENN split 2/1 on March 8, 2005. The stock closed at $60.35 on March 7, 2005, and at $30.00 on March 8. Pricing certainly looked good considering the stock price appreciated nearly 70% in the two year period from the split to the announcement of the LBO.

   Although the LBO collapsed, PENN financially seems to be in at least as good a shape today, if not better, than it was last year when the deal was announced. Even in an apparent economic downturn, PENN was strong. It still grew sales, $2,436 Billion for the year ending 2007, and made a profit, $160 Million ending 2007. PENN’s market cap: $2.58 Billion, is about 50% of its enterprise value: $5.43 Billion. Its PEG Ratio, a Jim Cramer benchmark, is: 0.86%. The Price/Sales Ration is a little more than 1x sales; and, its Price/Book Ratio is a little more than 2x book value.

   It will get a $225 Million termination fee that will be used for a $200 Million share buyback that should help the price of the stock. It can use interest free proceeds from a $1.25 billion investment for a 7 year, convertible, preferred stock issued to the original LBO investors to pay down debt and expand through acquisitions. PENN certainly is in what many analysts regard as a cash cow growth industry: racing, gaming and casinos which is likely to grow when the economy rebounds. PENN will have the financial muscle to enter mature markets, like Las Vegas and Atlantic City, and new markets, like Pennsylvania and Maryland, a be competitive.

   Seems to me at $29.66, the price near to where PENN closed after its 2/1 split on March 8, 2005; its strong fundamentals; its history of strong growth; and its prospects, PENN is a STRONG BUY!

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Recs

1

 (PENN)

Avatar PhillyGator (99.81) Submitted: 7/03/08 11:48 AM : Outperform Start Price: $31.64 PENN Score: 5.22

Excellent company- no longer being bought by Fortress

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Recs

1

 (PENN)

Avatar computervision (62.83) Submitted: 6/30/08 5:43 PM : Outperform Start Price: $31.93 PENN Score: 4.20

Casino.

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Wall Street

Results 1 - 13 of 13  

picks per page. CHANGE Expand All Pitches

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackDeutscheSec 86.12 08/08/08 Outperform NS $30.20+11.99%+1.75%+10.24
TrackSterneAgee 92.10 07/07/08 Outperform NS $30.91+9.41%+1.55%+7.86
TrackOppenheimer < 20 07/07/08 Outperform NS $30.91+9.41%+1.55%+7.86
TrackDavidTepper < 20 05/30/08 Outperform 5Y $46.49-27.25%-8.42%-18.83 Toggle the visibility of 60-Second Pitch and replies
TrackBreanMurray 95.07 02/25/08 Outperform NS $48.05-29.61%-4.98%-24.63
TrackJefferies 94.66 01/16/08 Outperform NS $50.95-33.62%-6.24%-27.38
TrackRonBaron 92.00 09/30/07 Outperform NS $59.02-42.70%-15.59%-27.11 Toggle the visibility of 60-Second Pitch and replies
TrackChuckAkre 62.10 09/30/07 Outperform NS $59.02-42.70%-15.59%-27.11 Toggle the visibility of 60-Second Pitch and replies
TrackDavenport 81.81 07/10/07 Outperform NS $60.67-44.26%-15.43%-28.82
TrackJimCramer 81.79 06/15/07 Underperform 3W $62.12-45.56%-15.86%+29.69
TrackLehmanBros 91.73 04/12/07 Outperform NS $49.10-31.12%-10.39%-20.73
TrackBearStearns 94.56 01/23/07 Outperform NS $42.26-19.97%-9.47%-10.50
TrackWachovia 82.98 09/22/06 Outperform NS $36.32-6.88%-2.17%-4.72

Results 1 - 13 of 13  

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