Since its inception, the Feather News has only overtly proclaimed one buy/sell recommendation on a stock. That stock was Empire Resorts. Last February we said in a Feather News article, "If you buy it, cash out fast because Empire is a dog based on its financial statements ...." On that day, Empire Resorts was $2.26 per share. Today, the share price is $1.01, less than half its value since the day we recommended to dump it.
For some this was, and for some still is, a play on the Catskills casino dream. Empire Resorts runs the Monticello Raceway in the Catskills. Kien Huat Realty III, LTD, became the company's largest shareholder last year and is not to be underestimated. A related company of Kien Huat, the Malaysians that financed Foxwoods, won the bid to build and operate a slot parlor and other amenities at the Aqueduct Racetrack in Queens, N.Y.
We're not in the business of making stock picks but, just for the record, we withdraw any recommendation from earlier in the year. We're not saying that it won't go lower, we're just saying that we withdraw any suggestion on this stock.
No Empire Resorts stock has been purchased by an insider since last May. One director of Empire Resorts has been selling shares consistently since last Spring. While sales of a stock by an insider (a director or large shareholder) can mean anything, there's usually only one reason stock purchases are made - to make money.
It should be noted that over the period of the last 11 months, when Empire Resorts took a nosedive, other gaming companies skyrocketed.
So what stocks should we buy? There are plenty of good companies out there, some that pay better dividends than the interest rates you're getting at the bank and that also give you an upside potential on the stock price itself. Of course, there's always that downside potential too. Stay tuned.
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