Talen Energy ($TLN):
Just a day ago, the White House announced plans to make Pittsburgh an AI hub with huge investments made in new datacenters. This morning, Talen Energy ($TLN) announced plans to purchase two gas plants for $3.5 billion. Not coincidentally, these plants are both located in the nearby Pennsylvania-New Jersey-Maryland interconnection market. As I write this, Talen stock is up 24% on the day and is close to triple DKI’s initial purchase price. As always, we recognize Enrique Abeyta who did fantastic work in the name and introduced it to DKI in a webinar last year.
Las Vegas Sands ($LVS):
Sands’ stock is up more than 50% in the past three months as Macau traffic has improved considerably. Most of the good news has been in the mass and premium mass markets where $LVS has #1 market share. The company has completed most of the big renovation projects and should be both well-positioned with new suites and facing easy comps from a year ago. In addition, the company just broke ground on the massive new Singapore expansion. As that integrated resort is almost 100% booked and has raised room rates by huge amounts already, the expansion is welcome and necessary.
$FSX:
The stock is up 150% in the past three months. I expect continued excellent growth, strong results from the increased salesforce, and no negative impact from any Medicare cuts. Even with the recent run-up, the stock is still very cheap and I haven’t sold a single share.
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