Nevada gaming stocks steady despite volatile market
Shares of the gaming industry’s largest publicly traded companies didn’t experience a steep decline in price as the stock market plunged 519.83 points Wednesday.
Only one company, gambling equipment vendor Shuffle Master, suffered a double-digit percentage drop, falling $1.01, 11.85 percent, to close at $7.51 on the Nasdaq National Market.
Casino operators suffered slight declines, although Boyd Gaming Corp. hit a new 52-week low while falling 8.08 percent, and Ameristar Casinos was off 7.53 percent.
Slot machine maker WMS Industries finished the day on a positive note, up 83 cents, 4.14 percent, to close at $20.87. Wednesday marked WMS’ third straight increase following a 28 percent drop on Friday after the company reported poor fourth-quarter earnings.
CB Richard Ellis gaming analyst Jacob Oberman said the market roller coaster could hurt the recovery of Las Vegas gaming.
“It is unlikely that the recent stress that has gripped the financial markets will materially impact the Strip in the third quarter because it is almost half over,” Oberman told the firm’s clients. “However, past experience suggests that it is becoming increasingly likely that Strip gaming revenue could show weakness as early as September and into the fourth quarter.”
On Wall Street, Lazard Capital Markets analyst Jake Fuller upgraded Wynn Resorts and Las Vegas Sands Corp., saying the companies were in a better position to weather economic issues because of their casino holdings in Asia.
