Red Rock Resorts (RRR) has tremendous potential to explode 🚀🚀
Casino companies and hotels are among the sectors that have been hardest hit by the Corona crisis and the following restrictions. I took a very close look at the entire sector and found my favorite for the upcoming recovery in this segment – Here comes the high flyer, which is developing extremely well despite all the adversities: Red Rock Resorts (RRR)!
Red Rock Resorts, Inc. was founded in 1976 and can therefore look back on many years of experience. In addition to managing the Station Casinos ("Station LLC"), the company also has a fair equity interest in them.
Station Casinos offers a variety of gambling and other entertainment to the residents of Las Vegas. Station LLC owns and operates 10 large gaming and entertainment facilities and 10 smaller casinos.
With the reopening of its casinos after the lockdowns, the company is reporting good results, revenue and most importantly, profits. Red Rock has learned a lot during the pandemic and is evolving its operations accordingly, resulting in much higher profit margins. Unprofitable facilities were cut, marketing budgets cut, headcount reduced and unprofitable casinos closed. In the past quarter, on a like-for-like basis (compared to 2019 results), sales increased 5% and profits increased 38%. Red Rock also announced that it has sold the troubled Palms casino for a high price and will soon begin building a new casino in Durango. So fundamentally things are looking very good for Red Rock Resorts.
Since the company also has no exposure in Asia, the shares are already doing significantly better than those of the competition such as MGM, WYNN or PENN, some of which have quite a large exposure in Macau. There, the corona crisis is still a heavy block on the leg due to the stricter rules in China.
I think Red Rock Resorts (RRR) stock has tremendous potential and could go up significantly in the near future.
via r/wallstreetbets https://ift.tt/3qhG8Zq
September 14, 2021 at 05:06PM