Cost of flights to Las Vegas have gone up.
This is on top of rising room rates.
Everyone's disposable income is reduced by gasoline at $3.00. High rollers may cut weekend trips to Vegas. RV travelers are especially hit by high gasoline prices and many RV parks in Vegas will see lighter traffic. Oil...................
Oh please! Anyone I know if they want to go to Vegas gas will not stop them. Nothing short of death and illness will hold them back. If for some reason someone cannot afford to go believe me they are not the ones that will spend money anyway Like a high roller is going to say oh gas is up I will not go!!
definitely not the air fares. there are fares out to las vegas for 225 and less. also high rollers who will bet 1000 every minute or so hardly care about gas. gas has been high in las vegas for several years. the stock was downgraded today. i wish i would have bought it in the teens or twenties. borgata is sold out every night and they are increasing their size here. you never know what mirage may do as they own a piece of borgata. i dont own the stock but do go to the casino
For sure its not price of fuel.
What might be happening is that all those slot players made the decision that a second home is more desirable than losing big at the machines, the high rollers may be seeing the economy going into recession soon and buying a beach house instead.
Wait a minute here. "rising room rates" are negative for us?
So people are saying room rates are rising and others are saying that the hotels are giving them away.
The only real information recently was that Vegas was knocking out record $$$. People will gamble when things get tight -- they'll give up some things, but gambling is the way to make their $$ multiply. As long as they think that way, Vegas will do just fine.
Now, the shooting in the morning at Suncoast is not exactly great publicity for BYD. http://www.lasvegassun.com/sunbin/stories/lv-crime/2005/aug/25/519257830.html
In the '73 fuel crisis the casinos used to reimburse the drivers fuel bills if you took your gas receipt to the cashiers cage and stayed to gamble 4 hours or so. I remember my old Dodge Challenger used two tanks full each way from Los Angeles. Ouch!
Since most modern day cars are getting much better milage I don't think fuel is a big issue until the price gets much higher.
Do the math:
Say gasoline goes up $0.50 cents per gallon. Say the average driver drives 1000 miles a month in a car that averages 20 mpg. That's an extra $25/month, or about $6 per week. I'm guessing the average guy is more willing to bring a sack lunch once a week than cancel his trip to Las Vegas. As long as we stay at 5% unemployment and a tame CPI, BYD's fundamentals should remain fine. All jmho
Boyd is a broken stock, not a broken company. The uptrend is still intact, Boyd is experiencing a retracement along with other gaming stocks. These are buying opportunities.
When it comes to trading, I used to decide my allotment and go all in, then set my stops. IBD teaches this as do most investment books.
But since watching Cramer regularly I realized a more sane way to trade (and less arrogant). I decide how much I want in the stock. I then do some analysis and decide where my entry points are. In the case of Boyd, a stock I traded when it was in the high 30's/low 40's, I wanted back in, but wasn't goign to chase it.
When it got beat down after announcing earnings, I bet on a bounce. I made several hundred day trading, then decided how much I wanted as a swing trade.
The recent runup started on 1/24/05 with a low of $37.70, reaching a high of $59.25 on April 13.
I apportioned the amount I want for my longer term swing trade and bout some at the 23.6 percent retracement level of $54.00. The next level down, the 38.2% was $51.00. The 50 percent retracement level, hit today, is $48.25. I have all I want now.
I will watch the price movement and the volume on a daily basis pretty closely. The stock can be profitably day traded or short term swing traded (short and long) between the retracement levels.
I do pay attention to fundamentals, and I have visited (and stayed) at Boyd's properties in Vegas. The new resort will be ideally suited for Boyd's junkets they run from Hawaii. Those not wanting to fight the strip traffic will have an option other than downtown; this is going to open a new venue for Vegas. The Borgata took a hit at the tables last quarter, but still did well. Odds are in Boyd's favor to continue its solid growth. This stock is a keeper until it shows signs of really reversing, which it decidedly has not!