The increase in volumes over the last few days is indicating a little bit of momentum on the downside. However, despite a correction from the 52 week high of ~$60, the stock is still up more than 40% from its 52 week low. Over the past 5 years the stock has multiplied several times on the back of improvement in fundamentals. The revenue growth has not been terrific, but the company has been reporting net income since last two years. However, in the last quarter, the company reported a decline in net income on a yoy basis, but the revenues increased by 8.4%. On a sequential basis, the growth in revenue and net income was good. A correction in the market may obviously put pressure on the stock due to profit booking. It is trading at crucial levels, and declines may lead to a much deeper cut. There is also expectation of some news about the patent infringement lawsuit filed by MGT Capital Investments (MGT). Negative news on that front may dampen the sentiments in the short term. On the valuations front, the stock is trading at 27 times ttm earnings and around 20 times forward earnings. So any rise in the stock price will stretch the valuations beyond comfort levels. The debt has increased over the past few years which is another matter of concern. On March 31, the debt on books was $2.63 billion (~$2 billion on December 31, 2011) and the cash was around $250 million. The current ratio of 0.91 also indicates less elbow room on liquidity. On the positive side, the growth in the gambling market may support the revenue growth for PENN in the long run. However, it has to focus on cost rationalization to remain in the green. The current profit margins of 6-7% need to be improved.