PENN - PENN Entertainment: The Bear Has Emerged From Hibernation But Wait To Move
2024-03-05 16:05:57 ET
Summary
- PENN Entertainment, Inc.'s solid casino business is not the main driver of upside, but rather its foray into sports betting and digital gaming.
- The company's digital ventures, including the Barstool Sportsbook and ESPNBet, have resulted in significant losses and revenue softness.
- Despite the challenges, Penn's foundational brick and mortar casino business remains strong, and the stock may be undervalued.
Above: Though sports betting will be a fringe producer of revenue for Penn, it, not its solid casino business, will tell the tale of an upside ahead.
Readers of this space know that I have been a big fan of the shares of PENN Entertainment, Inc. ( PENN ) aka Penn going back about four years on Seeking Alpha . My reasoning from the beginning was significantly based on my career experience working with executives who had migrated to Penn from companies we both worked at over time. I liked the fact that most key people were ground rooted gaming people. They were not recruits from banking, hotel, entertainment or tech operations, but had spent the bulk of their careers working up the casino ladder from entry level....
PENN Entertainment: The Bear Has Emerged From Hibernation, But Wait To Move