Scuffling Penn Leisure (NASDAQ: PENN) notched a late-session rally Tuesday. That’s after Barstool Sports activities founder David Portnoy took to Twitter to disclose he bought a big quantity of shares within the regional on line casino operator on Monday.
Barstool Sports activities founder David Portnoy. His tweet late Tuesday boosted Penn inventory. (Picture: The Verge)
In what seems to be a response to an “web troll,” Portnoy mentioned he bought “2 million” in Penn inventory yesterday. He didn’t make clear if that’s two million shares or $2 million price of the inventory.
Intraday charts point out Portnoy’s social media submit was impactful and created some optimistic buzz round a inventory that slumped 8.9% over the previous month, and shed 10.44% year-to-date.
Pivotal Timing for Portnoy Announcement
Portnoy added to his already substantial Penn stake simply days after the on line casino operator compelled Barstool Sports activities to fireplace poker participant Ben “Mintzy” Mintz. He was sacked for utilizing a racial slur throughout a podcast wherein he was reciting lyrics to a rap music. Within the wake of that occasion, which coincided with Penn’s tepid first-quarter earnings report, the inventory slumped, stoking hypothesis that the antics of Portnoy and another Barstool personalities might ultimately be an excessive amount of for Penn to bear.
Just lately, there’s been chatter amongst analysts that Portnoy might go away Penn when his two-year contract expires, or that the regional on line casino large might finally look to promote Barstool, as a result of media isn’t the dad or mum firm’s core competency.
In February, Penn paid $388 million for the 64% of Barstool Sports activities it didn’t beforehand personal, bringing the full acquisition worth for Portnoy’s firm to $551 million.
Portnoy has an estimated internet price of $120 million, which seemingly signifies he bought $2 million price of Penn inventory on Monday, not two million shares. Had it been the latter, that transaction would’ve carried a price ticket of practically $52 million. At present, the shares closed increased by 1.7% on quantity that was greater than double the day by day common.
Possibly Portnoy Isn’t Leaving Penn
In a subsequent tweet, which included a chart highlighting Penn’s late Tuesday pop, Portnoy questioned his viewers. He requested whether or not folks wished him to say that he’s nonetheless a believer within the gaming firm and that he intends to stay there for a while.
He added that he’s “not a inventory advisor or monetary knowledgeable.”
Avid followers of Portnoy, of which there are tens of millions on varied social media platforms, know that whereas he’s not a registered funding advisor, he did achieve some notoriety throughout the early levels of the coronavirus pandemic for actively buying and selling shares, together with shares of Penn rivals. He even coined the legendary funding agency “Davey Day Dealer World,” utilizing the hashtag #DDTG on social media. That continues to be in his Twitter profile as we speak.
