Gemstone Equity Research
Growth, long/short equity, research analyst, tech

Churchill Downs: A Company Worth Investing In

Churchill Downs Inc. (NASDAQ:CHDN) provides platforms for pari-mutuel horse racing, casino gaming, online account wagering on horse racing events and entertainment through its properties in the US. The following chart shows the changes in the company's stock price and Dow Jones US Gambling index taking 2007 figures as the base of measuring change. The stock has outperformed the index from 2007 to 2012:

(click to enlarge)

Source: 10k Annual Report

Let us begin with an initial analysis of the company's business model, which will help us understand the top-line drivers that are successfully adding to the company's growth in terms of turnover. This information is shown in the following chart.

(click to enlarge)

Source: 10k Annual Report

Business...

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