Shares of Penn National Gaming, Inc. (PENN, Financial), a U.S. regional casino company, increased as the company completed an equity and convertible offering deal and increased its liquidity. Penn has seen a quick rebound in revenues at recently opened properties and its margins are improving as revenue builds while keeping costs low by delaying its ramp of labor and marketing to pre-COVID-19 levels. Penn anticipates it will generate 2019 EBITDA levels at 95% of 2019 revenue. Its online sports betting deal with Barstool should be an additional positive over time.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund second-quarter 2020 shareholder letter.
