OTCPK:GCGMF - Post by User
Post by
VegasStockson Jul 19, 2020 7:12pm
208 Views
Post# 31288499
No Luck for Ontario & BC Casinos - Time to Short Sell GC
No Luck for Ontario & BC Casinos - Time to Short Sell GCOntario is allowing some casinos to open outside the GTA, but with a restrictive 50 person cap on occupancy. This has lead Gateway Casinos to holdoff opening any of their casinos in Ontario: https://www.tbnewswatch.com/local-news/gateway-casinos-evaluating-capacity-restrictions-for-reopening-2565458
This combined with a recent uptick in cases in BC & Ontario lead me to continue to believe Great Canadian Gaming is significantly overvalued and is unlikely to see any revenue return this year. When the doors do open in 2021, the cash cow of Baccarat won't be able to return for a significant time longer and the costs of restaffing, retraining, and additional cleaning will make Great Canadian a DOG for the next few years.
VRS77 - agree with you (for once) on buying puts, but I would recommend $20, October strike. The air is going to come out of the tires on this thing over the next few weeks as investors give up and a Q2 with zero revenue and a couple hundred million in expenses is presented to investors.