Booking the gain at 8%
Keith covered PNK in the Hedgeye virtual portfolio at $11.52, netting a 8% gain on the short trade. According to Keith's model, TRADE resistance has moved to $12.54, while TREND resistance is at $14.79. It's great timing considering the release of Louisiana's state gaming revenues, which showed L'Auberge had an explosive July, +17% YoY in revenues. But we believe the exuberance will be short-lived as regional gaming will have to deal with a difficult macro environment ahead. We remain bearish on the intermediate-term TREND.