Crown Resorts today acknowledged Wynn Resorts is disengaging with respect to the announced takeover proposal.
We sold at $14.00+ yesterday, following the 20% rally on the open. The stock has retraced 10% and today is trading at $12.80. We again see value in Crown at or near this level.
A cautious approach is to sell covered call options and run the position as an income contributor to portfolios, (10% cash flow), or the more aggressive play will be to hold the stock for the potential of a concrete takeover offer from Wynn or another rival.
Assuming 5% EPS growth into FY20, we now have the stock on a 4.3% forward yield.