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Wall Street doesn't spare gaming stocks from major decline

Sep 16, 2008 7:04 PM

Industry Insider by Ray Poirier | Gaming company shares were not able to withstand market pressures Monday as troubled financial institutions caused a massive sell-off on Wall Street.

With the Dow plummeting more than 500 points, following the announcement that 120-year-old Lehman Brothers financial brokers was filing for bankruptcy, most gaming stocks saw their trading value decline, although not nearly as badly as the nation’s major banks.

Actually, the biggest hit was taken by Landry’s Restaurants Inc. (LNY), owner of the Golden Nugget casinos in Las Vegas and Laughlin, Nevada. The shares fell more than 14% to close at $14.09. Apparently the country’s financial condition placed the expected buyout of the company for $21 per share by Chairman and CEO Tilman Fertitta in doubt..

Wynn Resorts Ltd. (WYNN) suffered the biggest dollar decline on Monday with its shares closing at $83.67, a loss of $3.82. Also affected were: Las Vegas Sands Corp. (LVS) closing at $35.33, down $2.38; MGM MIRAGE Inc. (MGM), at $29.83, down $1.89, and Bally Technology Inc. (BYI) at $32.06, down $1.95.