Different views on the viability of Boyd Gaming

Mar 10, 2009 4:02 PM
by Ray Poirier |   While executives of Boyd Gaming Corp. (BYD) continue to show their interest in Station Casinos Inc., analysts seem to have different views on the viability of the company.

One wrote over the weekend that it seemed odd to him that Boyd Gaming "was expected to earn $0.41 per share yet its stock trades at just $3 and change." Longer term, he said, he felt the stock could trade higher.

But another wrote that Boyd Gaming "appears to face some of the strongest headwinds" within the casino sector.

He cited the company’s debt load of $2.6 billion of which $2.1 billion becomes due in 2012. He also found a fourth quarter announcement that the company had "only $98.2 million in cash" troubling.

However, he failed to note that when the company announced its interest in Station Casinos, it said that it had a $2 billion line of credit.