Full House Stock Hits Record as Fund Manager Reveals Holdings in Casino Name

Posted on: May 18, 2021, 10:31h. 

Last updated on: May 18, 2021, 12:07h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Full House Resorts (NASDAQ:FLL) stock hit an all-time high earlier today, and is one of the day’s best-performing gaming equities. That’s after an investment company said it added shares of regional casino operator to a pair of its funds.

Full House stock
The outside of Full House’s Silver Slipper Casino in Mississippi seen above. The stock is soaring today. (Image: GulfLive.com)

In midday trading, Full House is higher by almost 10 percent on volume that appears poised to eclipse the daily average. Already up a scintillating 136 percent year-to-date, the Tuesday ebullience in the stock is being facilitated by bullish analyst commentary and AdvisorShares noting Full House now resides in two of its exchange traded funds (ETFs).

The Maryland-based fund issuer said earlier today it added Full House shares to the AdvisorShares Vice ETF (NYSEARCA:VICE). The shares are an actively managed basket of “sin stocks” that includes holdings in alcohol, fast food, and tobacco fare in addition to gaming equities.

In fact, gaming stocks are the largest industry weight in VICE at almost 28 percent and Nevada-based Full House is the fund’s tenth-largest holding at an allocation of 3.71 percent, according to issuer data.

Other casino stocks in that fund include Boyd Gaming (NYSE:BYD), Caesars Entertainment (NASDAQ:CZR), DraftKings (NASDAQ:DKNG) and Penn National Gaming (NASDAQ:PENN).

More Help for Full House Stock from AdvisorShares

Today’s move by Full House is further supported by its addition to the AdvisorShares Hotel ETF (NYSEARCA:BEDZ).

A month old, the newly minted BEDZ is the first dedicated hotel ETF and features the Silver Slipper operator as its fifth-largest holding at a weight of 4.80 percent. Full House is one of four gaming names among the top 10 BEDZ components with the three being VICI Properties (NYSE:VICI), Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) and Boyd.

Full House’s portfolios of casinos is comprised of just five venues, one each in Colorado, Indiana, Mississippi, and a pair in its home state.

With a market capitalization of $321.48 million, it’s one of the smallest publicly traded gaming entities, but it’s recently been one of the most potent. While most casino stocks are sagging over the past month, Full House is higher at 5.34 percent.

Reasons to Be Bullish

Full House stock isn’t as widely followed by analysts as are large-cap equivalents, but the analysts that do track the name are mostly enthusiastic.

Union Gaming analyst John DeCree said the operator resumed substantial construction on its Chamonix project in Colorado a few months ago and that effort is expected to gain momentum as 2021 moves along. The venue, which is slated to be one of the higher-end properties in the Full House portfolio, should open in late 2022.

DeCree adds the company has the capital and resources to expand the Silver Slipper in Mississippi. This is a noteworthy point for investors because that venue is the biggest contributor to Full House’s earnings before interest, taxes, depreciation and amortization (EBITDA).