Elsewhere in the world of U.S. gaming financials, Ameristar Casinos saw their shares take a bit of a tumble this week after an analyst initiated coverage on the company with a Hold rating, citing growth strategy concerns and a lack of diversified gaming assets. Monday, the stock dropped three-percent or 60-cents to $22.31 on the NASDAQ, still in the high-end of their 52-week average of between $16.73 and $26.57. Stiff competition from Harrah’s Entertainment given that outfits recently-increased promotional activity is pressuring Ameristar’s margins. Ameristar traded down at $21.72 per share Friday on the NASDAQ.

Speaking of Harrah’s, they, too, were downgraded this week from neutral to overweight by J.P. Morgan amid the projected likelihood that it will have trouble outperforming the broader market over the next twelve months. Further, the broker also pointed out that Harrah’s, earning trends in both Las Vegas and Atlantic City are lagging behind previous periods of growth – due in no small part to their higher promotional spending. Their stock also dropped early in the week by more than $2.50 per share to $64.93 Tuesday on the NYSE, dipping even closer to the low end of their 52-week average of $57.29 and $83.33, before ending the week up at $66.43. Harrah’s is facing increasing competition of their own from the newly-expanded Boyd Gaming/MGM Mirage-owned Borgata Hotel Casino and Spa, with revenues at its Showboat, Marina, Bally’s and Caesar’s properties inching up only two-percent in July.

In some celebrity spokesman news, Full House Resorts. announced they have reached a consulting agreement with former Chrysler Corporation Chairman and CEO Lee Iacocca to provide services and help market and advertise the company and its various projects over the next three years. Full House Resorts runs the Delaware State Fairgrounds’ Midway Slots, offering more than 1,500 slot machines, a 50-seat diner, a 450-seat buffet, and an entertainment lounge area. The company is also currently in collaboration with Native American tribes in Michigan, Montana, and New Mexico to develop gaming enterprises.

In other news, Las Vegas Sands Inc. has begun construction of their remaining Cotai Strip properties, hot on the heels of the recently-completed Venetian Macau Resort Hotel. Inspired by the famous Las Vegas Strip, the Cotai Strip sits in an area of reclaimed land nestled between the islands of Taipa and Coloane in Macau, a People’s Republic of China Special Administrative Region. Their stock traded up at Friday close at $68.35 per share.

- Rex Harris

This entry was posted on Sunday, October 1st, 2006 at 10:38 pm and is filed under Las Vegas Gaming, US Gaming, U.S. Gaming Financial. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.