Penn National Gaming Shares Looking More Attractive
Penn National Gaming (NASDAQ:PENN) has been a bread-winner for many investors over the past couple of years as the company outperformed most other stocks in the Casino and Gaming industry.
Penn National Gaming has been trading in a range of $52-63 dollars over the past year. The highest point of near $63 was reached this past October, while the low of around $52 came in August.
Many investors have been attracted to PENN because of it's solid profitability and growth figures. New investors, or those who have been sitting on the sidelines watching this company rise, are looking at the best opportunity to buy this stock since August.
The biggest question for many investors who are looking to pull the trigger on a stock usually boils down to timing. There doesn't seem to be a better time to buy Penn then right now. Over the past ten days, the stocks has magically bottomed out to near 52-week lows, hovering around $54 per share.
Around Decemeber 28th, the stock was sitting at around $59-60, near the top of its 52-week range. Two weeks later, the stocks has fallen into the low 50's once again.
Speculation of a possible sale of the company has been looming ever since shareholders approved a possible sale of the company in December 2007.
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Recent Comments
| Posted by: jim stocks | When: 01/11/2008 07:30:40 PM EST |
| Sales are falling, economic woes are in place. What better time to buy? Think again. Once it breaks through Aug support levels we will be in a freefall. Good luck if you want to buy this dog. Consider buying a house while you are at it... | |
| Posted by: Penn Sale is June | When: 01/12/2008 07:16:21 AM EST |
| Speculation? / Possible? The company is being bought for $67/share in June. Financing is in place and there is a $100 million break up fee. Also, this has been one of the best performing stocks on the Nasdaq for over a decade. Certainly no dog. | |
| Posted by: PENN attractive? | When: 01/14/2008 02:08:12 PM EST |
| I think the question is not timing but why the stock has dropped (now at $52). I'm not sure, but it seems awfully coincidental that it occured after large insider sales... Maybe they know something we don't? An arbitrage spread of 22.5% doesn't exactly signal investor confidence in the deal. Lack thereof is understandable for a deal with EV/EBITDA of 13.5 in a bearish market. And $100 million is hardly going to determine the direction of an $8.9 billion deal. With a forward P/E of 23 and PEG of 1.6 for a company overladen with debt, even current valuations seem hard to justify in this market. Watch for a large drop if the deal doesn't go through. | |
