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Casino Share Rally Sparks Offerings, Insider Sales30 May 2002LOS ANGELES, California – As reported by Reuters: "Amid one of the coldest markets for public offerings in memory, gambling stocks have become one of the few bright spots this year as companies -- and gaming executives -- seek to cash in on valuations not seen in years. "Coast Resorts Inc. became the latest company to jump on the offering bandwagon last week, when it said it was planning an initial public offering of company common stock. "…The announcement followed a recent change of heart by casino mogul Steve Wynn, who previously expressed disdain for public offerings after selling his publicly traded Mirage Resorts to MGM Grand Inc. to form MGM Mirage (NYSE:MGG). "…More recently, Isle of Capri Casinos Inc. (NasdaqNM:ISLE) said last week it plans a secondary offering of 5.35 million shares of its common stock. At the company's recent share price of about $20, the offering would raise about $107 million. "…Analysts said the spate of offerings, in a market where IPOs and secondary offerings have been few and far between, points to a recent rally in casino shares that has left many now trading near all-time highs. "…The current rally has many stocks trading at multiples not seen since the boom of the early 1990s, when investors snapped up casino shares amid a wave of optimism over adoption of legalized casino gambling in a number of new states. "Analysts attributed the rally to the faster-than-expected recovery of the Las Vegas market, where business levels are now at or near those from a year ago. "`Gaming multiples are pretty close to their historic highs,' said Bear Stearns analyst Jason Ader. `If a company was ever contemplating going public, now would be the appropriate time.'…" |