Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7300
    +0.0002 (+0.03%)
     

  • CRUDE OIL

    82.73
    -0.08 (-0.10%)
     

  • Bitcoin CAD

    88,173.25
    -3,046.51 (-3.34%)
     

  • CMC Crypto 200

    1,387.97
    -36.13 (-2.54%)
     

  • GOLD FUTURES

    2,329.10
    -9.30 (-0.40%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,461.00
    -203.50 (-1.15%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    38,080.45
    -379.63 (-0.99%)
     

  • CAD/EUR

    0.6816
    -0.0003 (-0.04%)
     

The Zacks Analyst Blog Highlights: Wynn Resorts, Penn National Gaming, Boyd Gaming, Caesars Entertainment and MGM Resorts International

Zacks Equity Research

For Immediate Release

Chicago, IL – September 23, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Wynn Resorts Ltd. (WYNN-Free Report), Penn National Gaming Inc. (PENN-Free Report), Boyd Gaming Corp. (BYD-Free Report), Caesars Entertainment Corp. (CZR-Free Report)) and MGM Resorts International (MGM-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

Gambling Stock Roundup

Though there were no major developments in the past week, it seems that casino operators continued their efforts to survive amid tough market conditions. While Wynn Resorts Ltd. (WYNN-Free Report) received a long-awaited license approval for a casino in Everett, Penn National Gaming Inc. (PENN-Free Report) announced the opening of the Hollywood Gaming at Mahoning Valley Race Course in Ohio – marking the fourth holiday facility in Ohio.

In one other development, Boyd Gaming Corp. (BYD-Free Report) made a few senior management changes while re-affirming its EBITDA guidance in the current weak environment, which is commendable. Meanwhile, Caesars Entertainment Corp. (CZR-Free Report) is in talks with more creditors to shed its debt.

However, a weak environment in Macau continued to impede the efforts made by companies in this space to overcome challenges. A sluggish outlook for the region -- along with lowering of ratings, estimates and target prices -- resulted in a continuous decline in share prices of gambling industry firms. (Read last week’s development: Gambling Stock Round Up for Sep 15, 2014)

Recap of the Week’s Important Stories:

1. Wynn Resorts has reportedly won the race for the lucrative $1.6 billion Boston-area casino license. Wynn Resorts and Connecticut-based Mohegan Sun were under strict scrutiny by gambling regulators for a casino license in Boston area. The Las Vegas-based casino giant triumphed over rival Mohegan Sun mainly on its financial strength. Mohegan Sun had proposed a $1.1 billion casino at the Suffolk Downs horse racing track in Revere. MA. However, the Massachusetts Gaming Commission finally voted in favor of Wynn Resorts’ plan to turn a former chemical plant site on the Mystic River in Everett into a casino resort. (See: Wynn Resorts Wins Lucrative Boston-Area Casino License)

2. Boyd Gaming announced a few senior management changes and re-affirmed its EBITDA guidance in the range of $580 to $600 million for 2014. Effective immediately, Keith Smith, President and Chief Executive Officer will replace Chief Operating Officer Paul Chakmak who is leaving the company. In July, the company had made a few executive changes to strengthen its operations leadership team. All members in those positions will now report to Smith.

3. Penn National Gaming announced the opening of Hollywood Gaming at Mahoning Valley Race Course in Ohio. This $250 million property features 850 Video Lottery Terminals, a variety of food and beverage options plus a sports bar and entertainment venue. A one-mile racing track is also set to open on Nov 24. It will also have an advanced simulcast theater through which patrons can wager on races throughout North America. The company expects this gaming complex to attract one million patrons per year.

This property will mark the opening of the fourth holiday facility in Ohio and second over a period of three weeks. On Aug 28, the company announced the opening of Hollywood Gaming at Dayton Raceway in Ohio.

In one other development, Penn National Gaming announced that Timothy J. Wilmott – Chief Executive Officer of the company has been included in the board of directors, subject to customary regulatory approvals. This appointment would increase the number of board members to seven. Wilmott joined Penn National Gaming in Feb 2008 as President and Chief Operating Officer and was appointed Chief Executive Officer in Nov 2013.

Over the eleven-month period -- since the company separated its real estate assets from operating assets -- Wilmott, with his efficient team management, has consistently delivered strong margins from existing operations, successfully opened new facilities and developed exciting expansion opportunities in new markets, including Ohio, Massachusetts and California.

4. Caesars Entertainment is now reportedly in talks with more lenders to shed its debt load. Earlier the company was in talks with some senior creditors to restructure a portion of its $24.2 billion long-term debt. Currently, it is working constructively with creditors to deleverage its most indebted unit, Caesars Entertainment Operating Company and create a sustainable capital structure. This marked the beginning of the company’s official attempts to restructure at least $12 billion of bonds and $6.2 billion of loans.

Caesars has not been able to post profits for a very long time, failing to recover from its debt load since the recession. The company has made attempts to get rid of its debts earlier, as well.

Performance

Share prices of most of the stocks declined last week. In the last five trading sessions, Boyd Gaming lost the most with its share price declining 3.2%, followed by MGM Resorts International (MGM-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on WYNN - FREE
Get the full Report on PENN - FREE
Get the full Report on BYD - FREE
Get the full Report on CZR - FREE
Get the full Report on MGM - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Read the analyst report on WYNN

Read the analyst report on PENN

Read the analyst report on BYD

Read the analyst report on CZR

Read the analyst report on MGM


Zacks Investment Research