Sam Boughedda

Investing.com — Penn National Gaming Inc (NASDAQ:Yesterday’s losses have been partially recouped by stock, which is now up more than 9%. Prescience Point Capital declared that the stock was still long.

After initially dropping around 21%, Penn shares ended Thursday’s session with a loss of over 15%. After the company announced an earnings loss before the bell, the decline started. The decline was further exacerbated by an article in Business Insider that claimed Dave Portnoy as the founder of Barstool Sports.

Portnoy, himself, has responded via Twitter to the criticism.

Penn acquired a 36% stake at Barstool in the early 2020s, and Portnoy stated on Twitter that he has “a lot” of Penn stock.

Ryan Sigdahl from Craig-Hallum was an analyst following these allegations. He said it’s difficult to forecast the potential ramifications but that Penn shares are a buy opportunity.

Prescience Point Capital took it a step further by tweeting “are long $PENN. This sharp selling of the article by @stoolpresidente reflects an enormous dislocation from real biz fundamentals. Only core casino is worth $75/share. +30% from this + free choice of @barstoolsports. Our consensus is that $PENN will increase 2x.

Prescience detailed their bullish position in a long thread. They stated that, while Portnoy might be the focus of media attention, Penn was still a regional gambling operator and has one the top management teams.

The share of $PENN has increased steadily over the past months. Prescience said that Barstool’s brand loyalty would distinguish itself from its competitors and generate sticky, high-margin revenue once the dust has settled.”

Penn shares rose to $63.30 on Friday so far.