RED ROCK RESORTS INC RRR
December 02, 2021 - 9:35am EST by
MadDog2020
2021 2022
Price: 45.89 EPS 0 0
Shares Out. (in M): 116 P/E 0 0
Market Cap (in $M): 3,150 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0

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Description

Anybody else need some cheeseburger money for the holidays?  Here's a quick odd lot for you.  Odd lot for this one is the standard 99 shares.  Range is $46- $53 and stock is just below the bottom end of the range.  Tender expires a week from today, on December 9th.  

The company is buying $350m of stock and insiders are not participating.  Company has pre IPO shares that are convertible so there's a wide range of the % buyback but assuming management doesn't participate, this is a 9.6%-11% buyback

The tender was announced on 11/10/21 and the stock was trading at just over $49 the day before.  They also announced a special dividend of $3/share that went ex-dividend on 11/23/21. Given the de minimis premium, there's an argument towards sizing up a bit rather than just doing the odd lot but I'm sticking with the odd lot.  The stock bounces around quite a bit so there's a reasonable chance you can put this on at the low end of the range and end up selling rather than tendering but we'll see how things play out.

 

https://www.sec.gov/Archives/edgar/data/1653653/000119312521325421/d109334dex99a1a.htm

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Expiration of tender offer on 12/9/21

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