“Slot machines are a dying business,” says veteran Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan.
“They were insanely profitable for decades, but they’re dinosaurs now. Nobody plays them except for baby boomers.”
Jordan’s been pounding his investment thesis hard since October. He says this development poses an enormous problem for regional gamers and slot companies and has been advising subscribers to short vulnerable stocks in the space.
What’s happened since then?
Since he released his black book advising shorting International Game Technology (IGT) in the fall, shares of IGT have dropped 20%.
Meanwhile, Penn National Gaming (PENN) and Pinnacle Entertainment (PNK) have both plummeted around 20% since Jordan went on record on January 3rd then again on HedgeyeTV on January 9 advising subscribers to short the stocks.