The regional gaming market doesn't get a lot of headlines these days. Troubles in Las Vegas and growth in Macau are much more exciting topics of conversation than regional operators are, but that doesn't mean there aren't opportunities in these areas. As the economy slowly recovers, casinos around the country are slowly coming back.
Results were helped by a full quarter of M Resort, which the company purchased in Las Vegas.
Mr. Market spits Penn out
You may have noticed that shares took a nosedive yesterday and have continued to fall today. As fellow Fool Anders Bylund pointed out yesterday, shares fell during the conference call, when management dismissed the possibility of paying a dividend. The market saw this as bad news and frankly didn't like the way management answered the question.
I will point out that Penn National executives are much more straightforward than most executives and have a more shown that they're willing to act with the long term in mind instead of making flashy statements. This has worked out well for shareholders, as Penn has outperformed Boyd Gaming
A Foolish thumbs-up
Even though the market gave Penn a thumbs-down, I like the way management snubs its nose at analysts every once in a while. If the discussion on the conference call was any indication, it's also likely that management is taking the stock drop as an opportunity to buy shares. You could take management's comments as a bad sign as the market does, or you could see it as a sign that management is focusing on creating value and doesn't care what an analyst from Goldman Sachs has to say. I see the latter.
Foolish bottom line
Penn isn't as exciting as the incredible growth Las Vegas Sands
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