Shares of Penn National Gaming (NASDAQ:PENN) fell 1.5 percent in after-hours trading Thursday, in what appears to be a response to Iron Mountain's issues with the Internal Revenue Service. In an 8-K filed with the SEC, Iron Mountain wrote the agency was "tentatively adverse" toward its plan to re-constitute itself as a real estate investment trust [REIT].
The move to REIT status by Iron Mountain (NYSE:IRM) -- a document storage firm -- was done solely to improve the tax position of the company and its shareholders. As long as a REIT passes along 90 percent of its profits as dividends, it is exempt from corporate income tax, boosting the net returns to shareholders.
Penn's sympathy move...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|