Keith shorted ASCA in the Hedgeye Virtual Portfolio at $18.81. According to his model, the TRADE resistance is $18.89 and TREND resistance is at $20.38.
Despite much better weather and a favorable calendar, ASCA may disappoint investors when they report 1Q earnings in early May. In particular, ASCA Kansas City was impacted by the new Kansas casino opening and some of their other markets failed to capitalize on what should’ve been a very strong quarter. While we like ASCA’s management team, ROI focus, and competitive positioning, our longer-term outlook on regional gaming is grim as demographics, the housing malaise, and other long term trends should continue to weigh on casino demand.
