BYD

Boyd Gaming Corp

Consumer


Presented:05/07/2015
Price:$13.78
Cap:N/A
Current Price:$64.16
Cap:$5.89B

Presented

Date05/07/2015
Price$13.78
Market CapN/A
Ent Value$4.79B
P/E RatioN/A
Book Value$4.34
Div YieldN/A
Shares O/S110.37M
Ave Daily Vol1,280,000
Short Int5.62%

Current

Price$64.16
Market Cap$5.89B
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates in five segments: Las Vegas, Downtown Las Vegas, Midwest and South, Peninsula, and Borgata. The company owns and operates 21 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, and New Jersey. It also owns and operates a travel agency in Hawaii; and the Borgata Hotel Casino & Spa in Atlantic City, New Jersey. In addition, the company underwrites travel-related insurance services. As of December 31, 2014, it owned and managed 1,268,345 square feet of casino space comprising 30,392 slot machines, 777 table games, and 11,391 hotel rooms. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Please note, this idea was presented as part of Regional Gaming; Penn National Gaming Inc (PENN) & Boyd Gaming Corporation (BYD): Long. 

Publicly traded companies mentioned herein: Boyd Gaming Corporation (BYD), MGM Resorts International (MGM), Penn National Gaming Inc (PENN), Wynn Resorts Ltd (WYNN)

Highlights

The presenter is long shares of regional gaming companies Boyd Gaming (BYD), and Penn National (PENN), and believes the industry is finally seeing some green shoots in the wake of the financial crisis. This sector of the economy has been in decline since 2007 - 2008, and appears to be finally starting to turn now. In his opinion, the best way to play a recovery is owning shares of BYD and PENN, as these companies “had to find ways to survive” over the past eight years as consumers allocated spending to other fixed costs, and as a result of significant cuts to operating costs (which are likely permanent) they now have substantially more efficient operating structures. Also, competition has diluted the earnings pools around the US, but there is now a lull in activity that should benefit PENN and BYD, which are the “stragglers”. Both companies have future catalysts working in their favor.

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Idea Discussion

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