As of right now, the difficulty with GC is the fact that we really don't know when casino's will open. This is a stock that has essentially stayed relatively flat in comparison to the TSX, and the reasoning is more than likely because of the unknown aspect of it.
Prior to COVID-19, GC had essentially tripled earnings over a 4 year period and was a very strong growth stock up until the crash.
revenues also had been increasing at a double digit pace and pretty much every segment of its business was seeing exceptional growth.
In the short term the company's balance sheet is built to withstand this. Cash of $881.9 million covers current liabilities by over 300%
Thing that concerns me is currently no timeline for getting casinos open, and the fact that a second wave could shut them down again. There is a possibility that casinos are shut down from March until we open them back up again, only to be shut down again for another unknown time period.
This is exactly why you've seen a company like GC have lackluster returns on the recovery and The Stars Group (TSGI) who focuses on online gaming, nearly double off its March lows.
Is there potential for large upside if the economy opens back up and life goes back to normal and stays that way? Absolutely. But, this carries with it a lot of guess work and hope.
So if I were to personally buy the stock, I'd be taking a small position as a bit of a speculative bet on a great company in a really poor, but recoverable situation.