Re: Need a gaming stock
Why a 30 year stock? The sector is fully valued, if not overvalued right now. I read analyst stuff on everyone in the industry practically all day long and they are all in love and in bed with the industry right now. One of those too much good news is bad news scenario if you ask me. Usually gaming stocks cool off around April, that might be the usual pattern this year as well.
Over the long-term, and I never think more than a few years out when it comes to stocks, I would focus on some of the regional operators. I do like PENN. I think whenever it finally gets done, and I am pretty sure it will happen, Pennsylvania will be a can't miss market for slots. Beyond that they are nicely diversified with operations just about everywhere but Nevada. I don't think Nevada is really the place to be, you have to put way too much into properties and keep spending gobs of money just to keep up. Compare that to building a facility at a racetrack and only spending a few million here or there to upgrade the restaurants or slot product. Once in awhile you might add some rooms, but those almost pay for themselves and then you still make money on the extra business on the slots. No doubt about it, racinos are like a cash machine. Taxes are high, but margins are blockbusters and usually the states give you a fat no-compete zone to add a cherry on top. So maybe PENN or MNTG, but those Mountaineer guys seem too fixated on Nevada and spend way too much on investing on things that are far from sure things, especially that track in Ohio. I still can't figure out how you spend $60 million there.
Throw out some names of who you are thinking of and maybe I will be nice and give you some comments [img]/images/graemlins/grin.gif[/img]
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