Boyd's Shares Bounce Back Up

6 January 2006

LAS VEGAS -- With two days to absorb details of Boyd Gaming Corp.'s proposed $4 billion Echelon Place, mollified Wall Street investors Thursday embraced the company's plans for the new resort.

Shares in Boyd closed Thursday at $47.33, up $1.24, or 2.7 percent, on 1.2 million shares traded, double normal volume.

On Wednesday, Boyd shares had dropped to $46.09, down $2.31, or 4.8 percent, on 2.3 million shares traded.

Bear Stearns analyst Joe Greff said investors were unnerved by the scale and price of the project, which was well above the expected $2 billion.

The self-contained, integrated resort is planned for the 63-acre site of the Stardust on the north end of the Strip. It will include 5,300 hotel rooms, 1 million square feet of meeting and convention space, 350,000 square feet of retail stores, and a 140,000-square-foot casino.

Brian Gordon, a partner in the Las Vegas-based financial consultant Applied Analysis, said such metro resorts, of which Echelon Place is the first, are the wave of the future for Las Vegas.

Analysts said this metro resort differs from MGM Mirage's $6 billion Project CityCenter because it includes no residential component.

"We're talking about a self-contained destination (resort) with very high densities that will be the new standard for Strip developments," Gordon said.

He said Echelon Place is similar in density and scope to The Venetian and Wynn Las Vegas as they are being expanded, except that Boyd Gaming's project is being developed "on a clean slate" and in a single phase.

The clean slate lets developers plan greater density and integrate all elements of the development, unlike predecessors to Echelon Place in Las Vegas, Gordon said.

Boyd Gaming spokesman Rob Stillwell said innovation, including Boyd's Echelon Place, generates jitters.

"If we weren't doing anything new, there wouldn't be any uncertainty or reason for concern," he said.

The initial negative reaction among investors to Boyd Gaming's Echelon Place was to the massive scope of the project and the development and financing challenges it could pose, Steve Ruggerio, gaming analyst with CRT Capital Group, said.

However, after a day of company briefings and Wall Street analyses, investors felt better Thursday, he said.

Ruggerio said earlier announcements in 1990 to build the Stardust tower and in 1999 to build the Borgata in Atlantic City generated similar jitters among investors.

In these cases, however, Wall Street came to understand that Boyd had the leadership skills, financing capacity, partners and customer base to make the projects work, he said.

"With Echelon, analysts first questioned whether it could work," Ruggerio said. "But once they looked at the company's capacity, financing and partner participation, they started coming to the conclusion it will work."


Related Links
Boyd Gaming Corporation Gaming Vendor Information


Copyright GamingWire. All rights reserved.
Featured Vendors
Betson Imperial Parts & Service
TribalHub
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
TribalHub
23rd Annual TribalNet Conference Sept 12-15, 2022 Grand Sierra Resort & Casino in Reno, NV
Rymax Marketing Services, Inc.
Casino Network
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Oklahoma Indian Gaming Association (OIGA) Conference
AmericanChecked
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: Aug 9-11, 2022 in Tulsa!
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
TDN Money Systems
Kallop
TDN Money Systems
Cage, cash/chip handling experts representing CountR, ARCA, AccuCASH, Fujitsu & NCR
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
Imagine This
Sunkist Graphics, Inc.
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Casino City Press
Talisman Group Creators of EZ Baccarat
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Slot Machines Unlimited
Plastic Card ID
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Plastic Card ID
The World’s Lowest Prices on Printed Plastic Cards and Card Printers!
Casino Schedule Ease
TOP ONE TECH LIMITED
Casino Schedule Ease
Get a 90-Day Free Trial of 100% contactless, customizable table game & full casino scheduling
TOP ONE TECH LIMITED
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application


Your Guide to 15,505 Gaming Industry Suppliers