Penn National Gaming, Inc. (PENN
), the largest operator of regional casinos, announced a major split of its business into an operating company ("opco") and a real estate company ("propco"). The stock rose 13.9%.We think that the propco can trade at a significantly higher value than where the company traded in the past, and therefore, the reorganization will enhance value. Plus, we are excited about the growth prospects for each entity, so we applaud the bold move by Penn management.
From Baron Funds' fourth quarter letter.