SuffelStocks 29

May 20, 2020 Brandon Suffel

Something big is on sale, all of you are too busy gambling with Penn National Gaming.

Twitter: @SuffelStocks
Stocktwits: @SuffelBMS.

Gambling with $PENN

I’ve already covered Penn before in another SuffelStocks post. I mentioned that Penns stock strongly attracts the youth. That is, college students who like to see their extra $50 of pocket change swing up and down. Robinhood has been a home for new investors, like myself, Penn gaming has become a popular buy on the platform as of just recently.

No more than an hour ago, someone personally came to me, and said, “buy Penn National Gaming!” Immediately I drew a simple why? Why are others seeing high promise in Penn and I am not?

Penn does fall on the cheaper side for new investors. It’s stock price, that rests under $30 — as of now — attracts youth. However, no matter the share price, your favorite stock may take a turn for the worst, you can still lose money.

Many stocks, such as Penn, have experienced a recovery from the March 2020 market crash. Around March 2020, Penn was listed relatively cheap. Shares drew under the $20 threshold, a great time for buyers to get in. Fast forward to today, shares broke the $25 threshold. Today is a happy day for Penn investors who bought in early.

$PENN 3M Robinhood chart w/ MACD

Why the sudden bounce? The answer ranges from federal reserve stimulus to a press release from Penn gaming commission, they plan to reopen 10 of their casinos in Louisiana and Mississippi.

Okay, let’s track back here a second… I forgot to address my inquiry earlier, why invest in Penn now?

In my opinion, I will not be investing in Penn gaming anytime soon. That is, until all sports return, casinos experience casual heavy traffic and, there’s something to gamble on. I don’t have a single doubt in my mind those casinos will be experiencing traffic, however, will it be the same as it once was? The answer is no. It’s no because 36.5 million Americans have filed unemployment in the past two months, and the sinister number continues to grow.

And who’s willing to gamble what little they have? Many don’t have work, others don’t have any savings and some just have nothing at all. And there’s the necessity putting food on the table, as of lately it’s been an exorbitant challenge for those struggling.

If those who wish to continue gambling what little they have, they can gamble on the sporting events returning in the summer. Is the industry guaranteed to survive the unpredictable curveballs thrown at us? With the cards we’ve been dealt with, probably not.

There it is, I don’t think $PENN is a goody buy, at least on my end. I can visualize the stock dropping after Q2 ER results for 2020, then going on sale.

If you’re looking for a good stock on sale, check out $KHC. The dividend payout is $1.60 quarterly with a yield of only 5.35%.

$KHC 5y Robinhood chart w/ MACD


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