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The CEO stepped down. he probably sold his shares, or a hedge fund sold there shares. Looks like they sold about 80% of the outstanding shares. There is a 57 million float now and a 6million share buy back so the stock price is going to climb at least 10%. Already up 4% on Friday.
Why did this drop so much? It was acquired by glpi, but I don't understand why the 70% drop. Wow...
$PNK DD Notes ~ http://www.ddnotesmaker.com/PNK
bullish
bull flag breakout continuation
$PNK recent news/filings
## source: finance.yahoo.com
Fri, 26 Sep 2014 21:00:00 GMT ~ Pinnacle Entertainment to Participate in the UBS Deutsche Bank 2014 G2E Gaming Investment Forum
[GlobeNewswire] - LAS VEGAS -- Pinnacle Entertainment announced today that it will participate in the UBS Deutsche Bank 2014 G2E Gaming Investment Forum, on Monday, September 29th at 11:15 a.m. Pacific Time in Las Vegas, ...
read full: http://finance.yahoo.com/news/pinnacle-entertainment-participate-ubs-deutsche-210000553.html
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Fri, 26 Sep 2014 20:35:00 GMT ~ The Hammerstone Report Closing ReCap - Equity Markets Recover (and how)......
read full: http://finance.yahoo.com/tumblr/blog-the-hammerstone-report-closing-recap-equity-markets-203533140.html
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Wed, 17 Sep 2014 14:37:15 GMT ~ Ameristar Casino Hotel Kansas City Announces New Vice President & General Manager and Assistant General Manager
[GlobeNewswire] - KANSAS CITY, Mo. -- Ameristar Casino Hotel Kansas City announced the appointment of Rodney Centers to Vice President & General Manager and Gary Stella to Assistant General Manager.
read full: http://finance.yahoo.com/news/ameristar-casino-hotel-kansas-city-143715568.html
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Wed, 17 Sep 2014 14:24:53 GMT ~ Ameristar Casino Resort Spa Black Hawk Announces New Vice President & General Manager and Assistant General Manager
[GlobeNewswire] - BLACK HAWK, Colo. -- Ameristar Casino Hotel Resort Spa Black Hawk announced the appointment of Sean Demeule to Vice President & General Manager and Peter Chu to Assistant General Manager.
read full: http://finance.yahoo.com/news/ameristar-casino-resort-spa-black-142453180.html
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Tue, 16 Sep 2014 21:00:00 GMT ~ Celebrated Entertainer Tony Bennett to Perform at Belterra Casino Resort Friday, Nov. 14
[GlobeNewswire] - FLORENCE, Ind. -- Belterra Casino Resort will host a performance by iconic entertainer Tony Bennett 8 p.m. Friday, Nov. 14, in the CenterStage Showroom. Tickets can purchased at Belterra's mychoice(R) ...
read full: http://finance.yahoo.com/news/celebrated-entertainer-tony-bennett-perform-210000745.html
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$PNK charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$PNK company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/PNK/company-info
Ticker: $PNK
OTC Market Place: Not Available
CIK code: 0000356213
Company name: Pinnacle Entertainment, Inc.
Company website: http://www.pinnacle-entertainment-inc.com
Incorporated In: DE, USA
$PNK share structure
## source: otcmarkets.com
Market Value: $1,589,874,917 a/o Sep 26, 2014
Shares Outstanding: 59,792,212 a/o Aug 08, 2014
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.1
$PNK extra dd links
Company name: Pinnacle Entertainment, Inc.
Company website: http://www.pinnacle-entertainment-inc.com
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/PNK/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/PNK/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=PNK+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=PNK+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=PNK+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/PNK/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/news - http://finance.yahoo.com/q/h?s=PNK+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/PNK/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/PNK/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/PNK/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/PNK/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/PNK/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/PNK/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/PNK/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=PNK+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/PNK
DTCC (dtcc.com): http://search2.dtcc.com/?q=Pinnacle+Entertainment%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Pinnacle+Entertainment%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Pinnacle+Entertainment%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.pinnacle-entertainment-inc.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.pinnacle-entertainment-inc.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.pinnacle-entertainment-inc.com
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/PNK/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/PNK
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/PNK/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/PNK/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/PNK/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000356213&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/PNK/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/PNK/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=PNK&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=PNK
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=PNK+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=PNK+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=PNK
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=PNK
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=PNK+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/PNK/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=PNK+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/PNK.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=PNK
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/PNK/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/PNK/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/PNK/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/PNK/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/PNK
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/PNK
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/PNK:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=PNK
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=PNK
$PNK DD Notes ~ http://www.ddnotesmaker.com/PNK
The earnings were below estimates, but the stock continues to do well. The average price target of the analysts are higher than the current market price. JPMorgan Chase raised their price target for the stock to $30 from 29. Credit Suisse had earlier raised their PT from $15 to $17 with an underperform rating. Analysts predict that Pinnacle Entertainment will post $1.05 earnings per share for the current fiscal year. The stock is still up 90% on a one year basis and 46% on a ytd basis. The company reported an adjusted EPS of 11 cents for the quarter, missing the analysts’ consensus estimate of 32 cents by a big margins. The adjusted EPS in the same quarter a year ago was 30 cents. Long-term debt, including current portion, increased substantially to $4.49 billion from $1.44 billion in Q3'12, mainly because of the Ameristar acquisition. High leverage remains a major problem for Pinnacle and other companies in the sector. Capital investments are high, and acquisitions are required to leverage the growth in emerging segments. Caesars (CZR) & MGT Capital Investments (MGT) have recently acquired companies in the social casino sector which holds a lot of potential. The company had revenue of $418.90 million for the quarter, compared to the consensus estimate of $425.15 million. The company’s revenue for the quarter was up 63.6% on a yoy basis (revenue of $256 million in Q3'12). Consolidated Adjusted EBITDA increased by $37.4 million or 57.5% to $102.6 million. The results included 49 days of contributions from Ameristar, but excluded Lumiere Place Casino and Hotels. Combined Net Revenues and Combined Consolidated Adjusted EBITDA would have been $553.9 million and $140.5 million, respectively, had the results of Ameristar been incorporated for the entire 2013 third quarter instead of the 49 days included in the GAAP results. The full impact of the acquisition will be apparent in the current quarter.
PNK - Pinnacle Entertainment Reports 2013 Third Quarter Results
News Link
GLTA
Bob
The stock has appreciated 90% over the last one year. The upcoming Q3 earnings will determine the short term trend of the stock. In Q2'13, the company had posted around 6% growth in the top line, and the losses had declined significantly on a sequential basis. It is important for the company to post a good set of numbers because negative surprises can lead to profit booking. In fact, the stock has already come down a bit from the high made earlier this month. Like most of the companies in the sector, the company has been mostly reporting losses over the last few years. Even the topline growth has not been too robust. The acquisition of Ameristar will help it double in size and increase its market share significantly. However, it is expected to increase the debt as well. Leverage is high in the entire industry, and is also a concern for Pinnacle. The sector faces several challenges. Discretionary spending depends on improvement in the economy, and organic growth in revenues is linked to that. In addition, some of the bigger names are facing a multi-billion dollar lawsuit filed by MGT Capital Investments (MGT) for which Markman hearing has been fixed. A recent ruling in the case was largely positive for MGT, and it stayed proceedings against Caesars, MGM and Penn National Gaming pending litigation against some other defendants. For Pinnacle, the Ameristar acquisition is expected to be good for the long term. Though Zacks has recently downgraded the stock to neutral, analysts are largely positive about the company. The price target given by Zacks is $28.20. Barclays has a PT of $29 with an overweight rating, while Deutsche Bank has $30 with a buy rating. JPMorgan Chase has a target price of $31, and an overweight rating. The consensus rating for the stock is Hold, and the average target price around $23.60.
PNK - Photo Release -- Pinnacle Entertainment Introduces Belterra Park Gaming & Entertainment Center
News Link
GLTA
Bob
PNK - Pinnacle Entertainment Completes Acquisition of Ameristar Casinos, Inc.
News Link
GLTA
Bob
RBC Capital upgraded Pinnacle to outperform and increased the price target significantly to $24. Nomura recently downgraded it to neutral and lowered the PT from $23 to $21. Credit Agricole downgraded it to a sell while Barclays Capital have an overweight rating with a PT of $22 (up from $16). Consensus rating for the stock is hold and price target is $20. Thus, the analyst opinion is mixed and does not provide any clear guidance. The stock has done well for the investors and has more than doubled over the last one year. The acquisition of Ameristar Casinos (ASCA) is likely to be positive for the top line of the company as it would double the revenues and increase its market share significantly. Ameristar is a profit making company, but the impact of the interest costs due to increased leverage will need to be seen. Pinnacle has been incurring losses since the last few years. There was some reduction in losses, but the losses have again increased in the last two quarters. The existing leverage is high and is likely to increase substantially due to the $2.8 billion acquisition. Most big companies in the industry are highly leveraged and have been incurring losses. In addition, Caesars (CZR), Penn National Gaming (PENN) and MGM Resorts (MGM) are also facing a $4.5 billion dollar patent infringement lawsuit filed by MGT Capital Investments (MGT) for which Markman hearing has been fixed recently. Improvement in the economy will increase discretionary spending, and may lead to growth in revenues, but margins remain the main worry. Pinnacle has to show visible improvement on that soon so that it remains in favor of the analysts. This is specially important if one considers the excellent rise in the price of the stock over the last one year. Slippages will not be welcome and may put pressure on the stock.
PNK - Pinnacle Entertainment Announces Conference Call for 2013 First Quarter Results
News Link
GLTA
Bob
PNK - Photo Release -- Boomtown Casino New Orleans Breaks Ground on Hotel Project
News Link
GLTA
Bob
PNK - Pinnacle Entertainment Completes Acquisition of Retama Park Racetrack in Texas
News Link
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Bob
PNK - Pinnacle Entertainment Announces Conference Call for 2012 Fourth Quarter and Full-Year Results
News Link
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Bob
PNK - Black Keys sue casino owner over commercial song
News Link
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Bob
PNK - Pinnacle Entertainment to Acquire Ameristar Casinos for $26.50 Per Share in Cash
News Link
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Bob
PNK - Pinnacle Entertainment Announces Major Donations in St. Louis Designed to Boost Downtown Tourism
News Link
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Bob
PNK - Photo Release -- Pinnacle Entertainment's Four Louisiana Properties to Honor Veterans With Complimentary Meals
News Link
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Bob
PNK - Pinnacle Entertainment Reports Strong Third Quarter Results Including Consolidated Adjusted EBITDA of $74.1 Million and Income
News Link
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Bob
PNK - Pinnacle Entertainment Announces Conference Call for 2012 Third Quarter Results
News Link
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Bob
PNK - Pinnacle Entertainment to Present at the Gaming Investment Forum
News Link
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Bob
PNK - Pinnacle Entertainment Foundation Donates $80,000 to National Hurricane Museum & Science Center
News Link
GLTA
Bob
PNK Pinnacle Entertainment Opens L'Auberge Casino & Hotel Baton Rouge to Robust Crowds at New $368 Million Property
BY GlobeNewswire 5:36 PM ET 09/01/2012
http://stockcharts.com/h-sc/ui?s=PNK
BATON ROUGE, La. and LAS VEGAS, Sept. 1, 2012 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc. (PNK) today opened L'Auberge Casino & Hotel Baton Rouge, the Company's new $368 million casino entertainment property overlooking the Mississippi River, at 2:00pm CDT. A ceremonial throw of the dice marked the occasion with Baton Rouge Mayor-President Melvin 'Kip' Holden joining Pinnacle President and CEO Anthony Sanfilippo, L'Auberge Vice President and General Manager Mickey Parenton and Pinnacle's Executive Vice President of Regional Operations Geno M. Iafrate participating.
"This opening is the result of diligent work by an immensely skilled group of leaders at a property now brought to life on this exciting day for Pinnacle and Baton Rouge by our talented and enthusiastic team members," said Anthony Sanfilippo, President and CEO of Pinnacle. "We thank the citizens of Baton Rouge for their vote of confidence and look forward to being a vital part of regional tourism and the local community."
"The premier casino in the region is now open for business and we are excited to welcome guests for the first time as we extend the iconic L'Auberge brand into the thriving Baton Rouge market," said L'Auberge Vice President and General Manager Mickey Parenton. "We are thrilled to share it with our guests and the Baton Rouge community; from the expansive vibrant casino to the luxurious hotel and our distinct restaurants with breathtaking riverfront views, we look forward to creating memorable moments for our guests."
"We welcome the opening of L'Auberge Casino and Hotel in Baton Rouge with the more than 1,000 new jobs and 1,200 construction jobs it has created that positively impact our local economy," said Baton Rouge Mayor-President Melvin 'Kip' Holden. He adds, "Pinnacle Entertainment (PNK) chose to make this significant investment in East Baton Rouge Parish and we look forward to working with them and their employees as they become another great asset in promoting our city as a great place to live and visit."
L'Auberge Baton Rouge created more than 1,000 permanent new jobs with an anticipated tax impact of more than $50 million annually. The $368 million property created 1,200 construction jobs. L'Auberge Baton Rouge is Pinnacle's fourth property in Louisiana bringing the Company's investment in the state to more than one billion dollars. Pinnacle now employs more than 5,000 team members in Louisiana.
L'Auberge Baton Rouge provides a best-in-market casino entertainment complex featuring an expansive single-level, 74,000 square foot casino; nearly 1,500 slot machines; 50 table games, including a poker room; a 12-story hotel with 205 guest rooms and a rooftop pool; four dining outlets; a unique casino entertainment lounge with breathtaking views of the Mississippi River; 2,400 total parking spaces, including 800 in a covered parking garage; a multi-purpose event center with concert seating for over 1,500 people or banquet seating for up to 800 people; and outdoor festival grounds with capacity for up to 2,500.
A complete project fact sheet can be found at www.mylauberge.com .
About Pinnacle Entertainment (PNK)
Pinnacle Entertainment, Inc. (PNK) owns and operates seven casinos, located in Louisiana, Missouri, and Indiana, and a racetrack in Ohio. In addition, Pinnacle holds a 26% ownership stake in Asian Coast Development Canada Ltd. (ACDL), an international development and real estate company currently developing Vietnam's first large-scale integrated resort on the Ho Tram Strip.
Pinnacle Entertainment, Inc. (PNK) is publicly traded on the New York Stock Exchange under the ticker symbol PNK. To learn more about Pinnacle Entertainment (PNK), please visit www.pnkinc.com.
CONTACT: Investor Relations
Vincent J. Zahn, CFA
VP, Finance & Investor Relations
702/541-7777 or investors@pnkmail.com
Media Relations
Kerry Andersen
Director, Media Relations & Public Affairs
337/395-7631 or kandersen@pnkmail.comImage: Pinnacle Entertainment, Inc. (PNK) Logo
PNK - Pinnacle Entertainment Announces Additional Investment in Asian Coast Development (Canada), Ltd.
News Link
GLTA
Bob
PNK - Pinnacle Entertainment Postpones August 29 Grand Opening of L'Auberge Casino & Hotel Baton Rouge
News Link
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Bob
PNK - Pinnacle Entertainment Announces August 29 Opening Date for L'Auberge Casino & Hotel Baton Rouge
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Bob
PNK - Photo Release -- Pinnacle Entertainment Announces $20 Million Expansion at Boomtown Casino New Orleans
News Link
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Bob
PNK - Photo Release -- HPT (Heartland Poker Tour) Family to Celebrate Landmark 200th Episode
HPT is owned by PNK
News Link
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Bob
PNK - Pinnacle Entertainment Acquires Federated Sports & Gaming, Inc. and Federated Heartland, Inc.
News Link
GLTA
Bob
PNK - Pinnacle Entertainment Announces Agreements to Acquire Majority Interest in Retama Park Racetrack in Texas
News Link
GLTA
Bob
looks like Dan Lee is struggling to sell his "bought" license" again...
PNK - Pinnacle Entertainment Announces Cash Tender Offer
News Link
GLTA
Bob
~ Thursday! $PNK ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $PNK ~ Earnings expected on Thursday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=PNK&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=PNK&p=W&b=3&g=0&id=p54550695994
~ Google Finance: http://www.google.com/finance?q=PNK
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=PNK#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=PNK+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=PNK
Finviz: http://finviz.com/quote.ashx?t=PNK
~ BusyStock: http://busystock.com/i.php?s=PNK&v=2
<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=PNK >>>>>>
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
PNK - Pinnacle Entertainment Reports Solid Fourth Quarter and Record Full-Year 2011 Results
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Bob
PNK - Pinnacle Entertainment Makes a Move: Up 1.8%
17 hours 49 minutes ago - Financial News Network Online - Market Movers via Comtex
Up 1.8% to $10.62, Pinnacle Entertainment (NYSE:PNK), is one of today's notable movers. The Dow Jones Industrial Average is now trading 0.4% higher to 12,678 and the S&P is trading 0.3% lower to 1,311.
Pinnacle Entertainment has overhead space with shares priced $10.62, or 33.3% below the average consensus analyst price target of $15.92. Pinnacle Entertainment shares should encounter resistance at the 200-day moving average (MA) of $12.12 and support at the 50-day MA of $10.19.
Pinnacle Entertainment, Inc. is a diversified gaming company that owns and operates several casinos and casino hotels. The Company's facilities are located in Nevada, Mississippi, Louisiana, and Argentina. Pinnacle also receives lease income from card club casinos located in Los Angeles, California.
In the past 52 weeks, Pinnacle Entertainment share prices have been bracketed by a low of $8.06 and a high of $15.57 and are now at $10.62, 32% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 0.4% while the 50-day MA has declined 0.4%.
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Financial News Network Online (FNNO) is a leading provider of digital financial news content for distribution on the web. You can count on FNNO to bring you the latest market news, earnings reports, analyst comments, economic data reports and more. Visit http://www.fnno.com today.
GLTA
Bob
PNK - Fitch Affirms Pinnacle Entertainment's IDR at 'B'; Outlook to Positive
1 days 23 hours 39 minutes ago - BusinessWire via Comtex
Fitch Ratings affirms Pinnacle Entertainment, Inc's (Pinnacle) Issuer Default Rating (IDR) at 'B'. Fitch also affirms Pinnacle's $410 million senior secured credit facility and approximately $450 million in senior unsecured notes at 'BB/RR1' and roughly $725 million of subordinated notes at 'B-/RR5'. The Rating Outlook is revised to Positive from Stable.
The Outlook revision to Positive reflects Pinnacle's strong operating performance, particularly in the Lake Charles and St. Louis markets; the near-term horizon for the L'Auberge Baton Rouge project opening (summer 2012); and its solid liquidity position.
With the L'Auberge Baton Rouge opening, Pinnacle should have leading positions in three distinct markets. Baton Rouge, along with the continued ramp up at Pinnacle's two St. Louis properties and market leading position in Lake Charles, offers the credit a level of diversification and competitive position that is more commensurate with the higher-end of the 'B' category.
The Positive Outlook suggests that there is a good likelihood of an upgrade to a 'B+' IDR over the next 12-24 months. However, the upgrade would be contingent on Pinnacle's financial profile being able to absorb new competition that is expected to come online around the 2013-2014 timeframe.
Fitch's base case, which is consistent with an upgrade scenario, reflects EBITDA approaching $300 million and leverage in the mid-4 times (x) range once Baton Rouge opening anniversaries in the second half of 2013 but before competition opens and begins to ramp up. This scenario does not take into account drawing on the revolver to fund the installation of slots at River Downs, which may temporarily push leverage closer to 5x as the project reaches completion.
Around the 2013-2014 timeframe, there is the potential that Creative Casinos may open its $400 million Mojito Pointe project in Lake Charles. Pinnacle's L'Auberge Lake Charles accounts for about a third of Pinnacle's property EBITDA pro forma for the Baton Rouge opening and captures roughly half of the market share in Lake Charles. Also around the same timeframe, Rock Ohio Caesars' Horseshoe Cincinnati will open in second-quarter 2013 (impacts Belterra), and there could be another casino in Bossier City by 2013 (impacts Bossier City Boomtown).
Fitch expects Pinnacle's leverage to remain below or close to 5.0x as these projects ramp up, with enough cushion for a 20%-30% EBITDA decline in Lake Charles; 15%-20% declines at Bossier City Boomtown and Belterra; and a slow ramp up of L'Auberge Baton Rouge.
On a latest 12 months (LTM) basis as of Sept. 30, 2011, reported consolidated adjusted EBITDA was roughly $242 million compared to $1.2 billion in debt for a debt/EBITDA leverage ratio of 5.0x. With interest expense running in the $105-$110 million range, EBITDA/interest coverage is around 2.3x on an LTM basis. Fitch's base case forecasts this ratio to remain comfortably above 2x as the new competition ramps up.
Drivers that may place negative pressure on Pinnacle's ratings and cause Fitch to revise the Outlook back to Stable include:
--Pinnacle undertaking a significant development outside of River City phase II or outfitting River Downs for video lottery terminals (VLTs);
--Texas legalizing gaming in its 2013 legislative session, which would place pressure on Pinnacle's Lake Charles and Bossier City markets;
--General operating underperformance relative to Fitch's base case pressuring discretionary FCF to well below $100 million before competing facilities open;
--Deterioration in the macro-economic environment. Fitch's base case currently incorporates the continuation of a slow-growth recovery in the U.S.
Fitch considers it unlikely that Pinnacle's IDR will move beyond 'B+' in the foreseeable future taking into account the company's relatively small size, high exposure to limited number of markets, and the tendency to be an active developer. The ratings also take into account a longer-term leverage target in the 4x-5x range, with the potential for temporary spikes slightly above this range due to conservatively funded development projects.
The higher-end of the 'B' category would give Pinnacle credit for the prudent bottom-up building of its capital structure; leading, high quality assets in three distinct markets; increased focus on operating efficiencies, and solid liquidity.
Adequate Capital to Fund Project Pipeline:
Pinnacle's available liquidity as of Sept. 30, 2011 is at approximately $386 million, comprised of $368 million available on its recently expanded credit facility and $18 million of excess cash. Additional near-term sources of capital include $25 million expected from the Baton Rouge construction escrow once the project opens and $22.5 million from the sale of Pinnacle's Reno casino and related land for a total of $434 million in sources to fund Pinnacle's $500 million-plus project pipeline.
Project funding requirements include about $260 million that remains to be funded at Baton Rouge, $82 million for River City phase II and $175 million-$200 million to install VLTs at River Downs. This implies an $85 million-$110 million funding shortfall, which Fitch thinks can be adequately covered by Pinnacle's discretionary free cash flow (FCF) (remains in excess of $90 million annually in Fitch's base case).
Solid Liquidity with Good Discretionary FCF Prospects:
Pinnacle has no maturities until $375 million of its 7.5% subordinated notes comes due in 2015, although the 7.5% notes have to be refinanced by December 2014 to avoid an acceleration of the revolver maturity. Covenant headroom is ample and was expanded when the credit facility was amended in August 2011. Pinnacle's leverage is likely to peak in the third-quarter 2012, or right before the opening of Baton Rouge, at which point leverage should be well below the total leverage covenant threshold of 7.75x.
Fitch considers Pinnacle's discretionary FCF profile within the following base case context:
--Adjusted EBITDA in the $250 million-$290 million range. This takes into account the Baton Rouge opening and the anticipated cannibalization from the expected competition but excludes the potential EBITDA from the VLTs at River Downs.
--Interest expense in the $105 million-$130 million range, with the higher end of the range assuming that Pinnacle draws on the revolver to fund VLT installation at River Downs.
--Cash based tax expense at around $5 million and maintenance capital expenditures in the $50 million-$65 million range.
The above ranges would imply a discretionary FCF range of $50 million-$130 million. Discretionary FCF for the LTM period ending Sept. 30, 2011 is roughly $90 million.
Recovery Ratings:
Based on Fitch's recovery analysis, the top of Pinnacle's capital structure is well over-collateralized resulting in recovery values that are solid relative to their ranking in the capital structure.
Fitch rates both the bank facility and senior unsecured debt 'BB/RR1', estimating full recovery in the event of default based on the current capital structure. In its Recovery Rating (RR) analysis, Fitch estimates an adjusted enterprise value (EV) for creditor claims of more than $1.2 billion. This comfortably covers the $410 million credit facility capacity ($32 million outstanding) and the $450 million of unsecured notes. As a result, Fitch assigns an unsecured debt rating of 'BB/RR1', reflecting a three-notch positive differential from the IDR, which is above the cap of two notches in Fitch's RR criteria.
The subordinated debt rating is 'B-/RR5' (11%-30% recovery estimate), which benefited from the downsizing of the bank facility in February 2010 to $375 million from $531 million (subsequently upsized to $410 million).
As senior debt availability increases or is issued, there could be additional rating pressure on the RRs for the subordinated and possibly the senior unsecured debt. Pinnacle's current project pipeline is fully funded, so incremental debt issuance would be discretionary/opportunistic at this point.
In the case of an upgrade of the IDR to 'B+', Fitch may revise the Recovery Rating on the senior unsecured notes to 'RR2', implying a two notch differentiation from the IDR. This would be to differentiate the rating on the senior unsecured notes from the rating on the senior secured revolver.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Corporate Rating Methodology' (Aug. 12, 2011);
--'Recovery Ratings and Notching Criteria for Nonfinancial Corporate Issuers' (May 13, 2011);
--'Pinnacle Entertainment, Inc. Full Rating Report' (Dec. 12, 2010);
--'U.S. Gaming Operators' Recovery Models' (Jan. 4, 2012).
Applicable Criteria and Related Research:
Corporate Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229
Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=628489
Pinnacle Entertainment, Inc. -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=585205
U.S. Gaming Recovery Analyses -- Third-Quarter 2011
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=664815
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
SOURCE: Fitch Ratings
Fitch Ratings
Primary Analyst
Alex Bumazhny, CFA
Associate Director
+1-212-908-9179
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Michael Paladino, CFA
Senior Director
+1-212-908-9113
or
Committee Chairperson
Jamie Rizzo, CFA
Senior Director
+1-212-908-0548
or
Media Relations
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com
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Shine the spotlight on Pinnacle Entertainment, Inc. and you'll see the leading developer, owner and operator of hotels and casinos standing out front and center. Our star power spans across Nevada, Louisiana, Indiana and Missouri, and will soon take the stage in Asia. But really, this is only a sneak preview of The Best Casino Entertainment Company In The World®.
Pinnacle Entertainment properties epitomize the best in entertainment on a global scale. We don't just offer the best casinos, the best hotels, the best dining, the best entertainment venues, and the best service. We're also passionate about offering the best experiences, cultivating the best talent and facilitating the best quality of life for every community we touch.
Our rise to stardom dates back to 1938, when movie mogul Jack L. Wagner opened the celebrated Hollywood Park Turf Club in Inglewood, California. After nearly 60 years of success in the horse racing business we decided to reinvent ourselves. We purchased Boomtown Inc. in 1997 and emerged as Pinnacle Entertainment. We now operate eight of the best gaming resorts in the world, with new properties in the works, including an ownership stake in Vietnam's first large-scale integrated resort.
Our commitment to being The Best Casino Entertainment Company In The World® is not a role we take lightly. It will have you calling for an encore, time and time again.
Belterra, Boomtown, L'Auberge, Lumière Place, River City, and River Downs are registered trademarks of Pinnacle Entertainment, Inc. All rights reserved
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