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Gaming Investors Cash Out9 January 2003NEW YORK – As reported by the Press of Atlantic City: "The four largest casino companies lost $1.2 billion in stock value Wednesday after two Las Vegas heavyweights said they would miss fourth-quarter earnings estimates in a big way. "The warnings by MGM Mirage and Mandalay Resort Group sent almost every casino stock tumbling in heavy trading on the New York Stock Exchange. "The sell-off affected companies more dependent on Atlantic City casinos, too: Park Place Entertainment closed at $7.65, down 8.8 percent; Harrah's Entertainment down 3.4 percent at $37.47; Aztar down 4.2 percent at $14.04; and Trump Hotels & Casino Resorts down 2 percent at $2.45. "…Analysts were predicting fourth-quarter earnings of 22 cents per share for Mandalay. The company on Tuesday night said they would be closer to 10 cents, blaming bad luck at the tables and soft results over the holidays. "The next morning MGM Mirage blamed a weak economy for keeping high rollers away and bad luck in announcing its earnings forecast of 24 to 27 cents per share. Analysts had been predicting 43 cents. "Analysts noted that both companies had easy comparisons to the 2001 fourth quarter, which was hurt by the 9-11 tourism crash in Las Vegas. "…Their declines combined with those of Harrah's and Park Place represented more than $1.2 billion in market capitalization. "…Joseph Greff, gaming analyst at Fulcrum Global Partners, said the weak economy will also hurt Atlantic City, though not as bad Las Vegas…" |