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Buy -- Price 17.18 on March 10
by Morgan Joseph

We call attention to Penn's 6.875% senior subordinated notes due 2011 and 6.75% senior subordinated notes due 2015 for risk-averse accounts ... . We believe Penn is well-positioned to increase Ebitda quickly when consumers decide to spend more, likely in FY10. We estimate revenue, Ebitda, and EPS of $2.5 billion, $668 million, and $1.58 in FY10 ... . With Penn's strong balance sheet, we think the shares should trade at 7 times; [applied to] our FY09 E-Ebitda of $616 million, it equates to a 25 target. Penn trades at 5.7 times our FY09 E-Ebitda and 4.8 times our FY10 estimate. Market cap: $1.8 billion.

always made money

From a recent Mad Money show:

"A new person, that's a very discouraging way to start. ... Let's start buying things we know we like. Take that money and invest in one of the themes we talk about. I'm reiterating all my gambling sales right here."

The potential buyout offers a great upside. In case the transaction fails, the downside is very limited because of the strong management and excellent business portfolio.

P/E is 25 and the PEG is 1.18.

The options trading suggests to me that that Fortress Investment Group (FIG) wants to walk away from the deal, speculates Pete Najarian.

Casino operations at various locations allowing localized gambling as opposed to Nevada

Favorite stock. Did not sell with original buyout because thought price might be higher or another offer. Now I am an arbitrageur.

Buyout stock offer at $67

Gambling is down

lousy chart