I just saw that the prospect of 2 new casinos in De were being considered but that it was held up by the State. If allowed, they would have to eliminate one of the existing casinos. Sounds like bad news for DDE! Anybody have any news on this or comments?
The company has forecast that they will be breaching their loan covenants by the third quarter. Out of state competition is the problem. Their need to match competition by removing significant numbers of electronic games to be replaced by less profitable table games compounds their problems. I predict that the stock prices will be reversed soon- the casino side will break down below $2 and the tracks will be quoted above $3. Oh..goodbye to the dividend upon any refi allowing headroom on the covenants.