Shares of regional casino company Penn National Gaming, Inc. (PENN, Financial) increased on strong betting activity after the early September launch of the Barstool Sportsbook app. Penn owns a 36% stake in Barstool, with an option to increase its ownership to 50%. The company also reported better-than-expected financial results, driven by robust margin growth across its assets. The resulting increase in cash flow, combined with a recent equity offering, should help Penn pay down debt on its balance sheet and make additional investments.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund third-quarter 2020 shareholder letter.
