3 Stocks Pushing The Leisure Industry Lower

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The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Laggards within the Leisure industry included Bowl America ( BWL.A), down 6.3%, Chanticleer Holdings ( HOTR), down 2.0%, Lakes Entertainment ( LACO), down 2.3%, Asia Entertainment & Resources ( IKGH), down 2.6% and Speedway Motorsports ( TRK), down 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Speedway Motorsports ( TRK) is one of the companies that pushed the Leisure industry lower today. Speedway Motorsports was down $0.31 (1.7%) to $18.08 on light volume. Throughout the day, 20,771 shares of Speedway Motorsports exchanged hands as compared to its average daily volume of 28,900 shares. The stock ranged in price between $17.93-$18.34 after having opened the day at $18.34 as compared to the previous trading day's close of $18.39.

Speedway Motorsports, Inc., through its subsidiaries, operates as a promoter, marketer, and sponsor of motorsports activities in the United States. Speedway Motorsports has a market cap of $738.5 million and is part of the services sector. Shares are down 7.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Speedway Motorsports a buy, 1 analyst rates it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Speedway Motorsports as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on TRK go as follows:

  • TRK's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 0.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.80, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • SPEEDWAY MOTORSPORTS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPEEDWAY MOTORSPORTS INC swung to a loss, reporting -$0.15 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus -$0.15).
  • In its most recent trading session, TRK has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, SPEEDWAY MOTORSPORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Speedway Motorsports Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Asia Entertainment & Resources ( IKGH) was down $0.08 (2.6%) to $3.04 on light volume. Throughout the day, 41,275 shares of Asia Entertainment & Resources exchanged hands as compared to its average daily volume of 157,600 shares. The stock ranged in price between $3.02-$3.11 after having opened the day at $3.10 as compared to the previous trading day's close of $3.12.

Iao Kun Group Holding Company Limited, through its subsidiaries, promotes VIP gaming rooms in Macau, the People's Republic of China. Asia Entertainment & Resources has a market cap of $179.5 million and is part of the services sector. Shares are up 1.6% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Asia Entertainment & Resources a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Asia Entertainment & Resources as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on IKGH go as follows:

  • IKGH's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IKGH has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
  • IKGH, with its decline in revenue, slightly underperformed the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 11.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, IAO KUN GROUP HOLDING CO LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$16.64 million or 1322.70% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Asia Entertainment & Resources Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Lakes Entertainment ( LACO) was another company that pushed the Leisure industry lower today. Lakes Entertainment was down $0.11 (2.3%) to $4.72 on light volume. Throughout the day, 28,196 shares of Lakes Entertainment exchanged hands as compared to its average daily volume of 47,700 shares. The stock ranged in price between $4.68-$4.80 after having opened the day at $4.80 as compared to the previous trading day's close of $4.83.

Lakes Entertainment, Inc. develops, finances, manages, and owns casino properties in the United States. Lakes Entertainment has a market cap of $129.1 million and is part of the services sector. Shares are up 22.3% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Lakes Entertainment as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on LACO go as follows:

  • LACO's very impressive revenue growth greatly exceeded the industry average of 3.8%. Since the same quarter one year prior, revenues leaped by 272.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • LACO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 17.12, which clearly demonstrates the ability to cover short-term cash needs.
  • 40.38% is the gross profit margin for LAKES ENTERTAINMENT INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LACO's net profit margin of -14.36% significantly underperformed when compared to the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, LAKES ENTERTAINMENT INC's return on equity is below that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 430.9% when compared to the same quarter one year ago, falling from -$0.33 million to -$1.77 million.

You can view the full analysis from the report here: Lakes Entertainment Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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