Quote of the Day

“At present, with shares trading at ~$24.75, we do not see a meaningfully favorable risk-reward. We detail our rationale in the body of this note, but, given financial leverage and the sensitivity to the equity value stemming from multiple contraction in the event of the deal failing to come to fruition, we see downside in the $17 range versus upside to $36 (base case). … While we assign a greater than 50/50 probability to the transaction getting done, we see the timeline as being elongated, and believe the potential exists for further speed bumps along the way.” — Deutsche Bank analyst Carlo Santarelli, evaluating today’s Pinnacle Entertainment REIT bombshell.