My fear is earnings will be so complicated no one will be able to make much sense of it. And that is never good.
Will there be a one time charge for Katrina?
How will insurance payments be accounted for?
Will they consider Joliet and Alton to be "discontinued operations" going forward?
If they do, how will they acount for the portion of their debt attributable to those properties?
I thought MGM's report today was outstanding, year over year. And STN's and BYD's similarly outstanding. Earnings increases from 30-40%. How much better can a company do? And yet all are being trashed as if they are Taser. Right now, for casino stocks, no news is good enough.
There is some chance Penn's guidance will look good to the market and can get us turned around. Let's hope.
<<<I thought MGM's report today was outstanding, year over year.>>>
I just looked over the P.R. earnings of $0.33 vs. expectations for $0.41, tried to blame the shortfall on the hurricane but year over year loss from hurricane damaged properties only $0.03 and at least some analyst polled factored this in to their estimates. Looks like MGM just had a bad quarter and tried to use the hurricane as an excuse. According to Moringstar analyst PENN's hurricane effected properties accounted for 6% of earnings last year. It seems to me the recent selloff more than accounted for this loss. I don't see hurricane being a big factor tommorow. JMHO.
Any good or bad news has been completely digested by the market and the actual annoucement should have no negative reaction. That's not to say there could be a emotional reaction from the public - - however, institutional investors have already discounted the information (don't you think they had some inside insight???!!!). If this company was worth $34-36 a share it is certainly worth $26.
If there is a one time hit for Katrina then I have no problem with that, the market normally doesn't care about one time things. Penn has been great on their earnings report, I'm looking to buy if its good because I feel its oversold here.
Can I ask what you are smoking? Nobody in this sector has had stellar results that is why the sector is getting its head handed to it. The big question is: Are the results exceptable to the street? If yes then it doesn't tank if no then this thing will go to $23.