|
Below is a teaser for our Gaming Deep Dive presentation hosted by our Gaming, Lodging & Leisure analysts Todd Jordan and Sean Jenkins. For access to the presentation and more GLL research, check out Gaming, Lodging & Leisure Pro. |
Today at 2:00PM ET we’ll be presenting our latest research and analysis on the Regional Gaming sector including our updated views on the associated stocks – PENN, BYD, RRR. The deck will cover a lot of ground and provide perspective around a lot of key topics that we’ve been preliminarily discussing with clients.
The impact of the ongoing economic slowdown, the wealth effect, and inflation are all top of mind for investors but we’ll also delve into the secular including key topics such as margin sustainability, amenity creep, competitive threats, demographics and much more.
No part of GLL is immune to recession risks and negative sentiment, but our initial hypothesis was that the Regionals (PENN, BYD, RRR) might represent some of the more durable and defensive GLL stocks in our coverage. We’re testing that thesis and putting a lot of numbers around it right now – all the work will be presented in our usual detailed format.
Stay tuned for some potential idea changes, but for now, take a sneak peek at a few key slides we'll highlight tomorrow. We're tracking at over 50 slides of original content and counting, so get ready for a data heavy deep dive.
For access to the presentation and more GLL research, check out Gaming, Lodging & Leisure Pro.
TOPICS TO BE ADDRESSED ON THE CALL
- Hedgeye Data Tracking – Review of GGR trends, promotional trends, market shares, cannibalization with iGaming and OSB, and other factors leading into Q2 earnings
- Consolidation Analysis – It’s 2022, not 2015, 2010, or 2005. This time is different – the competitive dynamics have changed compared to prior years and cycles. We’ll address the implications of the industry structural differences
- Macro & Wealth Effect Analysis – Macro / GDP is slowing down and potentially retreating so there will continue to be an impact across the GLL space. We'll examine the absolute and relative durability of the regional consumer – bringing the data and hard evidence to the macro debate
- Margin Deep Dive – Sentiment and estimates remain generally negative on the backdrop for margins from here, but our views have diverged from sentiment. Time for another deep dive on margins and flow through
- Regional Gaming vs Hotel REITs – Breaking down a potential pair trade – no GLL subsector is immune to macro, but there’s always relative winners and losers, we’ll walk through the fundamental cases between regionals and FS Hotel REITs
The Stocks – Reconciliation of updated industry views with the stocks – catalysts vs valuation, upside / downside, best ideas review
