leaving las vegas sequel / station casinos
this is from july
The trouble is, just as the housing boom has helped propel the stock, so too could a housing decline send the shares reeling. And make no mistake: This stock, with a market value of $4.1 billion, is a slave to the housing market and the local economy. It went nowhere for several years after the company's initial public offering in 1993, then suddenly came to life in 2003, just as the housing frenzy was gathering steam. Since then, Station's stock has soared in tandem with home prices
since then the situation in the housing market has worsened and stn is way underperforming the mgm and wynn that are not so focussed on the vegas population
Big Miss at Station Casinos http://tinyurl.com/y2bdj2
widely missed analysts' estimates for the third quarter, as its popular Red Rock casino in Las Vegas cannibalized demand from existing properties the company owns in the city.
Profits for the quarter fell to $19.2 million, or 34 cents a share, from $39 million, or 56 cents a share, in the year-ago period.
....Results were dragged down by lower margins at Red Rock, a flashy casino that opened earlier this year and quickly became the most popular gambling destination for local residents in the Las Vegas market. .....
Same-store sales at the company's properties, excluding Red Rock, fell 1% from last year.
The company's EBITDA margins at its Las Vegas properties fell to 33% in the quarter, down from 41% a year earlier.
Station also lowered its guidance for the fourth quarter and 2007.
Next year, the company expects earnings of $2 to $2.43 a share, well below its prior guidance of $2.53 to $2.95.