Shares of Red Rock Resorts, Inc. (NASDAQ:RRR) a casino owner and operator in the Las Vegas locals market, declined in the quarter as investors grew concerned over earnings at the newly renovated Palms casino. However, numbers continue to be in line with the ramping of a new property, and the company still expects the Palms to produce a strong high-single-digit return next year. This should generate more cash flow, which we expect Red Rock to use to pay down debt and reduce leverage.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund second-quarter 2019 shareholder commentary.
