We initiated a position in Pinnacle Entertainment, Inc. (PNK) during the quarter. Pinnacle is a regional gaming company with casinos in Louisiana, Missouri and Indiana. It is in the process of acquiring Ameristar Casinos, which should be highly accretive for the company and increase its diversity of assets and cash flow. Assuming the Ameristar acquisition closes this year and that the company completes its $580 million Lake Charles casino and $200 million Ohio racetrack with slot machines in 2014, the combined entity can almost triple its earnings. Management has indicated it will use its cash flow to repay debt. This would add significant value given the leverage post acquisition. (David Baron)
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.