Another large domestic gaming operation is Boyd Gaming (BYD). Boyd does have a small Las Vegas Strip location that if I am kind I will describe as vintage. Otherwise, Boyd depends on locals and the budget demographic player. This is the type of player I believe will lose the most in disposable income as we approach and move past 2014. On a relative basis, someone earning $20 an hour who experiences a pay cut to $18 an hour to pay for health care will have less disposable income than someone earning $40 an hour and already receiving acceptable or nearly acceptable health care coverage.
Without changes to the health care mandate on businesses (really on employees), anticipate Boyd shares to get hit hard. Business in Las Vegas has picked up on the strip, but the local market is still in the crapper. One more major catalyst holding down employment and wages is the last thing Boyd needs.Again, keep an eye on UNG and news of migration from gasoline and diesel. Lower energy prices provide a quick and significant boost to many wallets.
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