A great CEO and he likes the company. What they delivered a quarter and shares failed to rise as the S&P hits record highs. Wait till next week for a market reaction.
Stockchase Research Editor: Michael O'Reilly With indicators suggesting that customers are rapidly returning to gaming centres, we select PLAY as a TOP PICK. Recently reported earnings showed sales were up 24% compared to pre-pandemic levels and margins expanded despite rising labour and operating costs. Operating leaner has resulted in ROE exceeding 46%. There is a fairly large short open interest with this stock, that may trigger short cover buying with a move over $40. We recommend setting a stop loss at $29, looking to achieve $56.50 -- upside potential over 48%. Yield 0% (Analysts’ price target is $56.44)
(A Top Pick Jun 07/22, Up 6.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PLAY is progressing well. To remain disciplined, we recommend trailing up the stop (from $29.00) to $32.50 at this time.
We reiterate this gaming and entertainment company as a TOP PICK. It has been expanding its location footprint, investing in online offerings, while increasing cash reserves, buying back shares and reducing debt. It trades at 13x earnings and supports a ROE of 39%. We recommend maintaining the stop at $32.50, looking to achieve $52.00 -- upside potential of 49%. Yield 0%
(A Top Pick Apr 27/23, Down 6.3%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with PLAY has triggered its stop at $32.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss 11%, when combined with our previous buy recommendation.
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