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 down 0.3%. Laggards within the Leisure industry included Chanticleer Holdings ( HOTR), down 1.9%, Canterbury Park ( CPHC), down 2.7%, Asia Entertainment & Resources ( IKGH), down 2.5%, Frisch's Restaurants ( FRS), down 1.8% and Pizza Inn Holdings ( PZZI), down 2.4%.

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

Belmond ( BEL) is one of the companies that pushed the Leisure industry lower today. Belmond was down $0.21 (1.8%) to $11.66 on average volume. Throughout the day, 492,160 shares of Belmond exchanged hands as compared to its average daily volume of 364,900 shares. The stock ranged in price between $11.63-$11.91 after having opened the day at $11.85 as compared to the previous trading day's close of $11.87.

Belmond Ltd., together with its subsidiaries, is engaged in the hotel and travel businesses. It owns, invests in, or manages deluxe hotels and resorts, restaurant, tourist trains, cruises, and canal boat. Belmond has a market cap of $1.2 billion and is part of the services sector. Shares are down 21.4% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Belmond a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Belmond 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on BEL go as follows:

  • BEL's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 3.0%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.75, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for BELMOND LTD is rather high; currently it is at 55.22%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BEL's net profit margin of 3.46% significantly trails the industry average.
  • Net operating cash flow has decreased to $30.49 million or 19.24% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 65.2% when compared to the same quarter one year ago, falling from $17.46 million to $6.09 million.

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

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At the close, Frisch's Restaurants ( FRS) was down $0.52 (1.8%) to $28.30 on light volume. Throughout the day, 2,240 shares of Frisch's Restaurants exchanged hands as compared to its average daily volume of 5,500 shares. The stock ranged in price between $28.02-$28.90 after having opened the day at $28.90 as compared to the previous trading day's close of $28.82.

Frisch's Restaurants, Inc., together with its subsidiaries, operates full service family-style restaurants under the Frisch's Big Boy name in various regions of Ohio, Kentucky, and Indiana. As of June 3, 2014, it operated 96 restaurants and licensed 25 restaurants to other operators. Frisch's Restaurants has a market cap of $145.5 million and is part of the services sector. Shares are up 11.0% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Frisch's Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on FRS go as follows:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 57.6% when compared to the same quarter one year prior, rising from $2.27 million to $3.57 million.
  • Net operating cash flow has increased to $5.63 million or 16.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.56%.

You can view the full analysis from the report here: Frisch's Restaurants 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.

Asia Entertainment & Resources ( IKGH) was another company that pushed the Leisure industry lower today. Asia Entertainment & Resources was down $0.06 (2.5%) to $2.30 on heavy volume. Throughout the day, 96,996 shares of Asia Entertainment & Resources exchanged hands as compared to its average daily volume of 51,000 shares. The stock ranged in price between $2.24-$2.37 after having opened the day at $2.24 as compared to the previous trading day's close of $2.36.

Iao Kun Group Holding Company Limited, through its subsidiaries, promotes VIP gaming rooms in Macau, the People's Republic of China. Its VIP gaming rooms are located in City of Dreams Hotel & Casino, Sands Cotai Central, StarWorld Hotel and Casino, Galaxy Macau Resort, and Le Royal Arc Casino. Asia Entertainment & Resources has a market cap of $145.3 million and is part of the services sector. Shares are down 23.1% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Asia Entertainment & Resources a buy, no analysts rate it a sell, and none rate it a hold.

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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

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 IKGH go as follows:

  • IKGH's debt-to-equity ratio is very low at 0.01 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 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 805.91% to $3.68 million when compared to the same quarter last year. In addition, IAO KUN GROUP HOLDING CO LTD has also vastly surpassed the industry average cash flow growth rate of -4.56%.
  • IKGH, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues fell by 21.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 1803.9% when compared to the same quarter one year ago, falling from -$2.98 million to -$56.72 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, IAO KUN GROUP HOLDING CO LTD'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: 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.

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