Wednesday, March 19, 2014
How to Invest in Race Horses Without Owning Racehorses
The Kentucky Derby is one of the three most watched horseraces in the United States, will be held on Saturday, May 3, in Louisville, Kentucky. The Kentucky Derby is the first race of the three of races of the Triple Crown of Thoroughbred Racing. The Derby will be followed by the Preakness Stakes and the Belmont Stakes.
There are three ways to make money from race horses. You can buy a race horse, you can bet on a race horse, or you can invest in the stock of a horse race track. WallStreetNewsNetwork.com has a list of over half a dozen stocks in the horse racing industry, several of which pay dividends.
One example is Churchill Downs (CHDN), the host of the Kentucky Derby. (By the way, if you are planning on attending the Kentucky Derby, you need to buy your tickets now.) This is the holding company of the Churchill Downs Racetrack that originally opened in 1875. It also owns Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 30 times trailing earnings, 22 times forward earnings. Revenues for the latest quarter were up 3.1% and reported earnings of $3.06 per share. The company sports a yield of 0.9%.
Another runner in the racehorse field is Dover Downs Gaming and Entertainment (DDE), which owns Dover Downs Raceway, a harness racing track with pari-mutuel wagering. The company trades at 15 times forward earnings. Revenues were down 4.1% for the latest reported quarter.
Penn National Gaming Inc. (PENN) owns racetracks and off-track wagering facilities in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 32. Revenues dropped 13.3% for the latest quarter.
For a free list of horse racing stocks which you can download, sort and update, go to WallStreetNewsNetwork.com.
Also, if you want a free horse race handicapping program, check out the one at horsetip.com.
Disclosure: Author did not own any of the above at the time the article was written.