Should I buy Crown (CWN)?
For those who don't have CWN is it a buy ~ $8.60? What are the risks/rewards? Thanks Nick
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Answer
Hi Nick,
The risk is they lose their licence to operate which would have a big bearing on the value of the business. I doubt this will happen however it’s a risk none-the-less. For that reason alone we are not increasing our position in the MM Portfolios given our current 4% weighting. My risk tolerance personally is higher so I have added to my position over the past few days. We think CWN is worth ~$12 and their largest shareholder aside from Packer is Blackstone who own 9.99%. They lobbed a bid at $12.35 which was rejected. There is value in the assets and our view is that the value will be realised however obviously the risk from a regulatory perspective is real.
