Shares of gaming companies dive in July

2 August 2010

LAS VEGAS, Nevada -- The gaming industry might want to forget about July.

The average daily stock prices of casino operators and slot machine manufacturers all tumbled during the month with seven of the 10 companies followed by Las Vegas-based financial consultant Applied Analysis showing double-digit declines.

Las Vegas Sands Corp. and Wynn Resorts Ltd., which have the largest casino holdings in Macau of any American company, said their second-quarter earnings were helped by that market.

Apparently, the results from Macau also played a role in lessening the declines suffered by the companies' stocks.

Applied Analysis' monthly gaming index fell 1.2 percent to 331.23. The index reflects the composite score of daily stock prices, which mitigates some day-to-day volatility.

"Relatively strong earnings from nondomestic operations, particularly Macau, China, were not enough to push the overall index value forward." Applied Analysis partner Brian Gordon told clients in a report.

Shares of Las Vegas Sands traded down an average of 3.8 percent during July compared to a month earlier. Wynn Resorts was down less than 1 percent. Penn National Gaming, a regional casino operator which doesn't own a resort in Las Vegas or Atlantic City, was the only company whose average daily stock price had a single-digit decline.

The largest drop belonged to Boyd Gaming Corp., whose average daily stock price was down more than 22 percent.

The three major slot machine manufacturers, International Game Technology, Bally Technologies and WMS Industries, all saw their average daily stock prices fall between 10.5 percent and 14 percent.

Slot machine companies have suffered because casinos have been shying away from purchasing new gaming equipment.

On Friday, slot machine makers received some positive news when Massachusetts lawmakers seemed to near a compromise on allowing gaming opportunities in the state.

"We think this news is a welcome relief for the recently beaten down (and) possibly out of favor gaming equipment space," JP Morgan gaming analyst Joe Greff told investors. "Investors who wade into (IGT, Bally and WMS) and patiently hold them for the long term could potentially be rewarded in terms of share-price appreciation when U.S. replacements pick up and expansion opportunities become more tangible."

Most of the major gaming companies have reported earnings for the quarter. However, MGM Resorts International and Boyd Gaming will report second-quarter results on Tuesday.

"Earnings reports provided additional insight into gaming operator demand and financial performances," Gordon said.

Related Links
Nevada Online Gambling
Boyd Gaming Gaming Vendor Information


Copyright GamingWire. All rights reserved.
Featured Vendors
Indian Gaming Association's Mid-Year Conference & Expo
Slot Machines Unlimited
Indian Gaming Association's Mid-Year Conference & Expo
The perfect combination of learning, networking & sharing ideas on today's hottest topics in gaming
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Players Pal
Shenzhen ZhengYuanTai Technology Co., Ltd.
Players Pal
Revolutionize the way you connect with your casino players with the Players Pal mobile app
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years experienced gaming display manufacturer: open frame, curved, and halo monitors
Sunkist Graphics, Inc.
Dable Advisory & Consulting Services
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Top One Tech Limited
Casino City Press
Top One Tech Limited
Global Touch solution partner of choice, 10+ years OEM manufacturing, 100,000+ units application
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
AmericanChecked
Imagine This
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Betson Imperial Parts & Service
Regulatory Management Counselors, PC
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Texas Slots & Gaming
Global Gaming Expo (G2E)
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Talisman Group Creators of EZ Baccarat
TribalHub
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Oklahoma Indian Gaming Association (OIGA) Conference
Rymax Marketing Services, Inc.
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Casino Schedule Ease
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts


Your Guide to 14,958 Gaming Industry Suppliers