Note: The excerpt below was written earlier today by Hedgeye CEO Keith McCullough. Stay tuned for further updates from our Gaming, Lodging & Leisure sector head Todd Jordan.
Janet Yellen's testimony today was, on the margin, dovish. I think this keeps the lower-rates-for-longer Macro Theme in play and also augments our bullish Q1 (Quad1) view of US domestic consumption.
One of the best ways to play that Macro Theme is via regional gaming stocks (where both gas prices and accelerating housing trends are bullish for their core consumer).
As I pointed out in a previous note, Todd Jordan has already added Penn Gaming to our Institutional Research Best Ideas list. So that's not new today - the stock testing the low-end of its risk range on no volume is...
To review Jordan's bull case, while he's not ready to call a V-shaped regional gaming recovery, due to a variety of factors the numbers are looking a lot better. PENN had a solid Q4. January was one of the best months in regional gaming since well before the “Great Recession” began in 2008.
Buy Best Ideas (on red) when testing the low-end of the risk range.