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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (51997)8/20/2013 1:10:33 AM
From: Paul Senior  Read Replies (2) of 78652
 
TPCA: Here's an item I don't see filed under Yahoo's "headlines" for Tropicana. (Where I would normally go to find the latest news on the company)

finance.yahoo.com

That Tropicana under Icahn is expanding via an acquisition, I view as positive. At least management doesn't believe their financial situation is so bleak that they have to hoard cash and/or delay growth opportunities.

I don't own any TPCA shares: I'll consider more closely now if I want to step up and join you guys with a buy.

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A possible caution for me is that the properties being acquired are from Pinnacle Entertainment. These guys are great allocators of capital as regards casinos, and they really know the casino business and their markets, imo. They've been shrewd operators. (I have been a follower of the stock on-and-off for several years.) This makes me wonder if Tropicana is getting a good deal with their acquisition here from Pinnacle.
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