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Casinos Ponder War's Impact

"For the house, that means getting ready for a revenue pinch of indefinite size and length. For investors, it means betting on just how much lower the battered sector might go after the shooting starts -- and whether to dump, hold, or even increase their gaming equity positions.

"…But the industry is bracing for at least some short-term impact and is ready to apply the lessons it learned after 9/11 when gamblers shunned key casino markets in droves.

"…`We like Vegas. And we like war,' said Dan Ahrens, co-founder of the Mutuals.com Vice Fund (VICEX), which concentrates solely on gambling, alcohol, tobacco and defense stocks. `Everybody in the United States and the world agrees that war is probably going to happen and that it is probably going to be short and that it will be victorious. That will lift a huge amount of pressure off people's minds and the markets.'

"In addition, by the time prime tourist season of June to August comes around, `this will all be behind us. Americans have a short memory and they are going to need a vacation.'

"…In a note to investors earlier this week, Merrill Lynch's David Anders said that while first quarter estimates for many gaming companies are probably doable, `the trends are not overly encouraging.'…"

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