Research Notes: Lincoln And PENN Soar

We update on a pair of names that made big moves this week

Highlights:

• Lincoln Educational provides an interesting case study in why valuation is necessary, but not sufficient, in small-cap investing.

• But a big quarter from the business sets the stage for more gains ahead.

• The agreement between PENN and Disney’s ESPN has real risk, and optimism towards the partnership seems overblown.

• But there is logic to the deal, and a potential escape hatch if it disappoints. We still can’t quite get over the hump for PENN, but the stock remains intriguing.