Just A Reminder: I Have Been Strongly Bullish On Hill And CZR For Months. Now The Payoff Is Near.
Gaming, Special Situations, Long/Short Equity, Momentum
Seeking Alpha Analyst Since 2014
For 30 years I held senior vp and exec VP positions in major casino hotel operations among them Caesars, Ballys, Trump Taj Mahal and have done extensive consulting assignments for many others in the US, including the native American property Mohegan Sun, in Connecticut. I have also done special projects for Caesars Palace in Las Vegas. I was the founder and publisher of Gaming Business Magazine, first ever publication covering the gaming industry and have written extensively about the industry.
MY INVESTMENT STRATEGY: Due to the necessities of my casino consulting business which encompasses many top gaming companies, I have placed my own gaming portfolio into a blind trust over ten years ago. At that time I instructed my money manager(who is a former industry colleague herself as well as a corporate lawyer and money manager) to follow my gaming investment strategy along these lines.
1. I am a value investor first. Knowing the industry in depth I am able to plumb opportunities and problems others cannot see. Mostly I like to identify price ranges over given periods where I believe the market is asleep and I can buy in at the lowest possible risk. 2. I am a strong believer in management quality. Knowing so many top people in the industry allows me to evaluate which ones I believe have the "right stuff" to move a stock and which are populated by corporate drones. 3. I have instructed my manager never to trade on sugar high spikes in earnings or news per se but use the "string theory" I have developed which in brief, follows a skein of news and earnings releases over set periods of time for each stock and then move in or out. 4. I have instructed her to keep the portfolio diverse with holdings in four basic areas: Casino stocks in Las Vegas, Macau and the regionals, gaming tech stocks with real moats not just cute apps.
I am pleased to announce that as of September 1, 2022 I am expanding my coverage to include entertainment stocks, a sector undergoing a massive revolution on many fronts. This has sprung loose many investment ideas in the space I expect to share with members. The coverage is added at no extra cost.
I have been involved in the entertainment sector as well for decades involved in overseeing show and events in my properties as well as independent productions. I currently sit on the board of privately held Atlas Media Corporation, one of America;s premium non-fiction producers of tv and film programming.
Overall I have done immensely well and share my views with SA readers and more specifically with strong recommendations and gaming stock strategy analysis based on my network of industry contacts for subscribers to my SA Premium Site: THE HOUSE EDGE.
Summary
- I selected William Hill as a buy on SA months ago because I loved the tie in with CZR. Now its coming.
- If this deal closes it will put Hill sports books in potentially 60 casinos (much more than Penn) as more states legalize. Plus CZR already owns 20% of Hill.
- The marketing heft of both companies point it to a strong leadership market share ahead.
As news broke about a Hill/CZR deal it followed the logic of my posts many months ago when I pointed out that the JV and its consequences would be bullish for both stocks. This is happening now.
Here's the key: CZRm 60 casinos, 60million database (the biggest in the business) deals up the wazoo with teams and leagues and most important, you have a sports betting management team from both companies I immensely respect. Watch for this deal to close. If not CZR will still be in the run on market leaderhip.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.