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"The Kentucky Derby, held on the first Saturday in May, is coming up next Saturday, and the venue that holds the race is a publicly traded company -- Churchill Downs (CHDN). Churchill Downs went public in 1993, and on a pure price performance basis, it's only up 8.5% since its IPO.

We checked to see how the stock trades in the week before and after the Derby to see if it follows a "buy the rumor, sell the news" pattern. Interestingly, the average performance of the stock in the week before the Derby (Friday close to Friday close) has been 1.77%, while the average performance of the stock in the week after has been -1.32%. Investors who have bought the stock in anticipation of the event have done much better than those buying the stock after the event."

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