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Takeaway: We are removing PENN from Investing Ideas.

Please note that we are removing Penn National Gaming (PENN) from Investing Ideas today. PENN was added on 2/24/15 and is up 1.4% versus a 2.2% decline in the S&P 500.

According to Hedgeye Gaming, Lodging & Leisure Sector Head Todd Jordan: 

"We continue to like PENN over the intermediate and long term but negative same store revs in March could pressure regional gaming stocks."

In addition: 

  • We’re forecasting a return to negative same store revenue in the regional gaming markets following 3 straight months of gains.  A monthly downturn would counter the recent regional gaming narrative and could hurt sentiment and the stocks: BYD, PENN, PNK, and GLPI
  • We are removing PENN even though the company’s return to growth in beginning in 2H 2015 should drive a higher stock price.  Our concern rests with the potential reversal in sentiment as March gaming revenues are released by the states in early April.
  • Early weekly revenue read from a few markets is mixed as a much weaker Pennsylvania was offset by a stronger Missouri. 

PENN: Removing Penn National Gaming from Investing Ideas - zj