For me, I don't care where it's been, only where I think it's headed. Announcements by Las Vegas Sands to refinance debt under better terms should be given a lot of weight. Refinancing can demonstrate improving financial standing. Furthermore, Las Vegas Sands' and Wynn Resorts' operational income continue to improve.
Total revenue is generally moving from the bottom left to the top right of the chart. One concern is the ability from Boyd Gaming to capture greater revenue. The location visits I mentioned earlier combined with cut-rate room rates suggest off-strip locations will be the last to recover. The last few weeks have left Boyd shares lower by about 35%.
The Boyd gaming area outside the VIP section was modestly busy this week, occupied by either one person or no one each time I walked past to do a count (several times a day). Customer service was excellent, as good as any more upscale restaurant on the strip I ate at. That said, the buffet was as slow as I remember during any other trip. The other casino properties were relatively busy at expected times. Even non-casino on strip restaurants displayed vigorous activity.
Anecdotally, on my recent visit, Boyd Gaming was the weakest of the pack. Overall, the space appears healthy and not subject to significant immediate supply growth. Use price retracements as buying opportunities, especially with Las Vegas Sands.
At the time of publication, Weinstein had no positions in securities mentioned.
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