Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Empire Resorts (NYNY) were shining today, up as much 50% after New York state voters approved full casino gaming in their state yesterday.
So what: On Election Day, voters passed a constitutional amendment authorizing full-scale casino gambling. Empire Resorts, the owner of Monticello Raceway Management, said it plans to partner with EPR Properties (EPR -0.10%)to build a destination casino in Sullivan County, which would not be possible without the amendment passing.
Now what: After an early-morning spike, shares of Empire Resorts finished up just 2.4%, as shares had already spiked dramatically in the days leading up to the vote as passage of the amendment was anticipated. Today's response seems to be a version of the proverbial "Buy the rumor, sell the news" reaction common in the stock market. Shares of Empire Resorts have nearly quadrupled this year and the law change is no guarantee of a profit. As the company is coming off three straight years of losses, perhaps a wait-and-see approach is best.
