I expect FY2000 earnings to look something like this: .24 .40 .44 (2 holidays;WVA Breeders Crown;July, August vacations) .30 (not as big a dropoff as you might think, October, November are very nice months around here, people still like to gamble)
1.38 full year with the year about 3/4 over. Of course, this does not factor in Mississippi, who knows about Mississippi?)
So, this means the stock price is currently 10X this years earnings, with nice prospects for growth at least the next couple of years or so.
This is ridiculous. I figure these are the possible reasons why the stock is so low:
1) No one knows about the stock. (Volume is pathetically low, as of 10:30 this morning, no trades at all) 2) No one cares about this stock. (Its small in an unglamourous industry.) 3) Mississippi is seen as a major negative.
In the end, stock prices always follow earnings. Its the only thing that really matters. So, if earnings continue to rise, we'll all be fine. Forget the stock price, keep your eye on earnings.
1. high debt to equity ratio. 2. changing focus of business (from horseracing to casinos) 3. management that is unproven at best, and incompetent at worst (for proof, look at all the delays, failed expansions, "one-time" charges that recur, etc...)
look for a sell-off of non-casino racing properties in 1st qtr 2001.
after another slots initiative failure, or one that doesn't get off the ground in the 4th qtr 2000, penn and pocono are owned by someone else.