3 Stocks Pushing The Leisure Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was unchanged. Laggards within the Leisure industry included Bowl America ( BWL.A), down 6.3%, Full House Resorts ( FLL), down 1.7%, Chanticleer Holdings ( HOTR), down 4.8%, Lakes Entertainment ( LACO), down 2.1% and Asia Entertainment & Resources ( IKGH), down 2.9%.

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

Asia Entertainment & Resources ( IKGH) is one of the companies that pushed the Leisure industry lower today. Asia Entertainment & Resources was down $0.09 (2.9%) to $3.03 on light volume. Throughout the day, 41,482 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.

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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

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At the close, Lakes Entertainment ( LACO) was down $0.10 (2.1%) to $4.73 on light volume. Throughout the day, 30,667 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.

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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.

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.

Full House Resorts ( FLL) was another company that pushed the Leisure industry lower today. Full House Resorts was down $0.03 (1.7%) to $1.86 on light volume. Throughout the day, 15,643 shares of Full House Resorts exchanged hands as compared to its average daily volume of 32,600 shares. The stock ranged in price between $1.86-$1.94 after having opened the day at $1.89 as compared to the previous trading day's close of $1.89.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $36.0 million and is part of the services sector. Shares are down 32.4% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Full House Resorts a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Full House Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on FLL go as follows:

  • 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 181.8% when compared to the same quarter one year ago, falling from -$0.83 million to -$2.35 million.
  • 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, FULL HOUSE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 225.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • FULL HOUSE RESORTS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FULL HOUSE RESORTS INC swung to a loss, reporting -$0.21 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.21).
  • FLL, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 16.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Full House Resorts 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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