{"id":17731,"date":"2016-02-17T13:11:34","date_gmt":"2016-02-17T21:11:34","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=17731"},"modified":"2016-02-17T13:11:34","modified_gmt":"2016-02-17T21:11:34","slug":"wall-street-loves-it-some-boyd-wolf-at-the-door","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wall-street-loves-it-some-boyd-wolf-at-the-door\/","title":{"rendered":"Wall Street loves it some Boyd; Wolf at the door"},"content":{"rendered":"

Boyd Gaming<\/strong> came out with its figures for 4Q15 and Wall Street<\/strong> is fairly singing the company’s praises. “We believe that BYD\u2019s diversified, \"Wall-street\"domestic regional gaming portfolio should continue to benefit from continued U.S. jobs growth and lower gas prices. The stock provides for a favorable set-up for investors with potential, positive estimate revisions relating to its strong operating leverage and its exposure to the growing\/recovering [Las Vegas<\/strong>]\u00a0locals and downtown LV markets,” wrote JP Morgan<\/strong> analyst Joseph Greff<\/strong>, who called the quarterly results “very impressive.”<\/p>\n

Boyd’s Peninsula Gaming<\/strong> assets (Iowa<\/strong>, Kansas<\/strong>, Louisiana<\/strong>) exceeded Greff’s expectation, and cash flow was up 27% at Borgata<\/strong> and 23% in downtown Las Vegas. With Allegiant Airlines<\/strong> having ceased flights to Hawaii<\/strong>, Boyd’s chartered planes should be fuller than ever. According to Greff, the company “cited continued growth in pedestrian traffic in downtown Las Vegas driving casual\/unrated play.” With characteristic caution, Boyd projected 1% to 3% revenue growth this year.<\/p>\n

REIT conversion is still a wait-and-see proposition<\/a>\u00a0and Boyd’s priority seems to lie in reducing its leverage, toward which it will contribute $200 million. Deutsche Bank<\/strong> analyst Carlo Santarelli<\/strong> did warn of PokerStars<\/strong>‘ emergence — if it ever happens — in New Jersey<\/strong> as a threat to Borgata’s online-gaming revenues. Nevertheless, he headlined his report, “Five reasons to like BYD.” It’s nice to see The Street finally catching a ride on the Boyd love train.<\/p>\n

* $51 million is the magic number Pennsylvania<\/strong> Gov. Tom Wolf<\/strong> (D) would like to see the Keystone State’s casinos add to his annual budget. How does he plan to raise this revenue? By taxing free play<\/a>. That’s going \"bethlehem\"to hurt Sands Bethlehem<\/strong>, the Lady Bountiful of free play, the most, to the tune of $12 million a year.\u00a0“Any time money is taken out, it’s going to affect reinvestment in the property and the creation of future jobs,” warned Las Vegas Sands<\/strong> spokesman Ron Reese<\/strong>, adding, “There’s certainly no shortage of taxes already being paid.”<\/p>\n

Pennsylvanians are also being asked to pay more for cable TV, movie tickets and cigarettes, so free play seems like a logical target for the state’s tax maw. Whether or not it would inhibit job creation, it would \"Tomcertainly discourage the use of a favorite casino marketing tool, one that nobody in Pennsylvania uses remotely as much as Sands. Second-place donor Parx Casino<\/strong> would be dunned for only $7 million and many of the state’s casinos wouldn’t even come close to that. It should be remembered, also, that Pennsylvania casinos labor under a 55% tax rate, one of the most punitive in the U.S. (Neighboring Maryland<\/strong> is the worst.) Now Wolf (left<\/em>) wants to tax free play at an 8% clip.<\/p>\n

All of the state’s 12 casinos have gone on record against the proposed tax, with Mohegan Sun at Pocono Downs<\/strong> CEO Michael Bean<\/strong> saying,\u00a0“It’s going to cost us $3.7 million on top of the $125 million we already pay. At some point, if it’s going to be a handicap, you’re going to have to spend less. That’s not good for us or the state.” As a joint communique from the casinos points out, they can simply curtail free play, causing Wolf’s desired revenue to evaporate. However, since lawmakers still haven’t approved last<\/em> year’s budget, this 2016-17 impost isn’t a pressing cause for concern.<\/p>\n

* Everi Holdings<\/strong> drop-kicked CEO Ram Chary<\/strong> last weekend. Chary, whose main contribution has been to change the company’s name from one with brand equity (Global Cash Access<\/strong>) to something totally meaningless, seems to have been sacked<\/a> for having an unspecified “multi-state customer” defect on his watch. Interim replacement Mike Rumbolz<\/strong> instills confidence, with a resume that includes stints as CEO of Anchor Gaming<\/strong>, chairman of Casino Data Systems<\/strong> and chairman of the Nevada Gaming Control Board<\/strong>. He certainly puts a steady hand on the Everi tiller while the company seeks Chary’s replacement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Boyd Gaming came out with its figures for 4Q15 and Wall Street is fairly singing the company’s praises. “We believe that BYD\u2019s diversified, domestic regional gaming portfolio should continue to benefit from continued U.S. jobs growth and lower gas prices. … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,60,51,172,144,37,86,45,84,167,95,178,12,31,8,100,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/17731"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=17731"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/17731\/revisions"}],"predecessor-version":[{"id":17733,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/17731\/revisions\/17733"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=17731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=17731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=17731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}