Station, DraftKings, Macao all looking up

So much news … where to begin? Station Casinos got a thumbs-up from analysts at JP Morgan who met with the Fertitta Brothers and CFO Stephen Cootey. “We come away impressed with [Station’s] resolve in maximizing free cash flow at its simple business model, a focus on one major gaming market, the LV Locals, whose economic underpinnings are driven by population growth and less dependency on the health of the LV Strip versus 12 to 15 years ago, when the correlation was relatively high,” wrote Joseph Greff. He also approved of Station’s trimming of marketing expenses and still likes the stock to climb to $24/share by year’s end. The company’s perspective is that the Las Vegas market is “stable,” moreso than in 2008, thanks to 1) steadier home prices, 2) an infusion of retirees from California and 3) a more diversified local economy. Closing four casinos has not hurt Station, as customers are migrating to its other properties. (This could feed rumors of sales of the two Fiestas and Texas Station.)