Thursday, July 3, 2008

PENN: No Deal

Today, Penn National Gaming (PENN) confirmed that its pending deal with Fortress Investment Group (FIG) and others was indeed terminated.

They will receive $200 million in cash (about $2/share) and over $1billion in preferred equity in 2013.

As I had speculated (when the stock was a few dollars higher), failure was priced in - the stock is flat today (at least in the opening minutes). I still like PENN, I like this cash infusion, and I like their prospects in a tough economy - why fly to Vegas when you can lose money close to home?

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