Crisis Effect on Gambling Industry
As the US government stepped in to affectively guarantee liquidity in the money markets investors piled back into the blue chip casino companies on hopes that the worst is now over. But is this the turning point?
While the main blue chip casino stocks are well down on their levels over the last twelve months, we saw a number of rises such as Pinnacle Entertainment Inc +12.1%, MGM Mirage +4.1% and Las Vegas Sands Corp +9.8%. Many of the stocks which have risen are those which have either committed themselves to expansion in the future and were struggling or companies which recently took on substantial debt and were struggling to finance it. Now that the ‘oil’ is back in the money markets things should start to improve.
There are also hopes that the economy may well start to show signs of life again as the authorities attempt to bring the consumer out of their shells and back onto the high street. The only real long term fix is to reduce the risks of consumers being drowned by debt and losing their homes, and encourage them to get out and spend again. Expectations are high for return on casino industy investment over the next decade.
October 20th, 2008 at 9:17 pm
[...] Casino Steven wrote an interesting post today onCrisis Effect on Gambling IndustryHere’s a quick excerptAs the US government stepped in to affectively guarantee liquidity in the money markets investors piled back into the blue chip casino companies on hopes that the worst is now over. But is this the turning point? … [...]