SHFL

Our Reports on Stocks in the Gaming & Hotels Industry

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Image Source: Erin Pettigrew Structure of the Gaming & Hotels Industry The gaming industry is heavily regulated and particularly sensitive to discretionary spending. Significant future gaming revenue growth will come from the Asian markets, especially Macao. Possession of a gaming subconcession by the Chinese government is an advantage, though competition remains intense among existing Macao rivals. The hotels industry is highly competitive, with over 900 lodging management companies in the US alone. Demand for hotel rooms is very cyclical, and fluctuations in both occupancy rates and revenue per available room (RevPAR) should be expected. We’re generally neutral on the structure of the group. We’ve dropped coverage of stocks in the Gaming & Hotels industry.

The ‘House’ May Be Giving A Little Bit Back This Thanksgiving; It Did in October

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The Gaming Control Board of the state of Nevada released its gaming revenues and collections Wednesday. For the month of October 2013, Nevada’s nonrestricted gaming licenses reported a total “gaming win” decrease of 2.58% compared to October 2012. Las Vegas strip revenue declined 5.06% from the same period a year ago. Though “gaming win” has still advanced 1.52% from July through October of this fiscal year versus last year’s mark, the decline in the month of October still compares to a 7.41% increase in September and an 11.17% increase in August, signaling a marked change in the trajectory. It’s worth noting that year-over-year fluctuations should be expected (as total “gaming win” declined nearly 8% in July of this year), but … Read more

Shuffle Master’s Third Quarter Disappoints

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Gambling game supplier Shuffle Master (SHFL) reported weaker than expected third quarter results. Revenue increased 9% year-over-year to $63.4 million, several million short of consensus estimates. Earnings per share grew just 6% year-over-year to $0.18, a few cents short of consensus expectations. Though revenue growth was slightly disappointing, we were very encouraged to see recurring revenue advance 12% year-over-year to $30 million, marking its 15th consecutive quarter of expansion. Further, gross margins increased 100 basis points compared to last year to 63% thanks to more leases and higher average selling prices. Total utility revenue increased 8%, to $24.4 million, driven largely by strength in Macau and increased leases in the United States. The MD3 continues to spread thanks to superior card … Read more

What Really Is the “S” in ESG Investing

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By Valuentum Analysts Back in October, we explored “Putting the Environmental in ESG” investing. In this article, let’s dig deep into the second consideration of ESG (Environmental, Social, and Governance) investing — “Social.” While there has been greater attention paid to the social impact of companies in recent years–from the industries they operate in to the ways they impact their communities–this concept is definitely not a new trend. Investors have always cared about the impact of the companies they invest in. In the past, this idea has been encapsulated in the phrase Socially Responsible Investing (SRI), which is essentially the practice of seeking out companies that have a positive social impact on society. Some even put the earliest origins of … Read more