Hi Vince, I wonder how do you like Casino stocks now after almost a year from then.. they are still cheap and some even further down from 2022. This is intriguing with the broad market up so much ytd.
well, I think the two laggards are PENN and BALY, right? Also FLL which is down YTD — we called that one out in May. But the rest of the space is doing pretty well, CZR +22% and BYD 27%. Not quite a casino stock but DraftKings is +133% so far this year!
We actually took a long look at PENN recently and thought of recommending it...I couldn't quite get over the finish line. It looks cheap but historically it's traded pretty cheap. I could see a long PENN / short whoever, but that might be a bit too cute. BALY I think you have to see as an M&A play - really unimpressed with management there.
Thanks! I was also checking on $RSI, which is down YTD and for the past one year. There is no acquisition news, yet, but still possible (and more likely if its operation is improving)?
I started writing a comment here and kept going and going...we're doing a quick update piece on Wednesday morning on BIRD in response to a subscriber request and I think we'll add RSI to that list. It's a really fun story to discuss so I'll take a bit of time to dig in and add some color.
I still have 1800Flowers on my radar although getting in and timing the macro environment will be difficult . Currently little debt, and trading at low valuations is interesting. I did NOT like their too much m&a though , think some of those items are just too overpriced. So I guess still will be watching and keeping an eye on earnings in the next few quarters
yeah, in retrospect they did a roll-up in the gifting business, and this is how roll-ups so often go, right? They look good when times are good, and then suddenly look U-G-L-Y when the external environment shifts.
Harry & David I think is one obvious risk there. They went bankrupt in 2011 or so, if I remember correctly, and the financial crisis was part of that. (debt taken on in a private equity debt admittedly was another part.)
but the gifting business I think looks way more cyclical, and the flowers business has some secular concerns. I don't think it's a terrible play here but tough to own this into earnings any time soon
Hi Vince, I wonder how do you like Casino stocks now after almost a year from then.. they are still cheap and some even further down from 2022. This is intriguing with the broad market up so much ytd.
well, I think the two laggards are PENN and BALY, right? Also FLL which is down YTD — we called that one out in May. But the rest of the space is doing pretty well, CZR +22% and BYD 27%. Not quite a casino stock but DraftKings is +133% so far this year!
We actually took a long look at PENN recently and thought of recommending it...I couldn't quite get over the finish line. It looks cheap but historically it's traded pretty cheap. I could see a long PENN / short whoever, but that might be a bit too cute. BALY I think you have to see as an M&A play - really unimpressed with management there.
Thanks! I was also checking on $RSI, which is down YTD and for the past one year. There is no acquisition news, yet, but still possible (and more likely if its operation is improving)?
I started writing a comment here and kept going and going...we're doing a quick update piece on Wednesday morning on BIRD in response to a subscriber request and I think we'll add RSI to that list. It's a really fun story to discuss so I'll take a bit of time to dig in and add some color.
I still have 1800Flowers on my radar although getting in and timing the macro environment will be difficult . Currently little debt, and trading at low valuations is interesting. I did NOT like their too much m&a though , think some of those items are just too overpriced. So I guess still will be watching and keeping an eye on earnings in the next few quarters
yeah, in retrospect they did a roll-up in the gifting business, and this is how roll-ups so often go, right? They look good when times are good, and then suddenly look U-G-L-Y when the external environment shifts.
Harry & David I think is one obvious risk there. They went bankrupt in 2011 or so, if I remember correctly, and the financial crisis was part of that. (debt taken on in a private equity debt admittedly was another part.)
but the gifting business I think looks way more cyclical, and the flowers business has some secular concerns. I don't think it's a terrible play here but tough to own this into earnings any time soon