Bulls run on Stations

January 22, 2002 6:42 AM
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Knocking aside concerns about the Las Vegas gaming market, Station Casinos roared to solid gains on Wall Street last week. Share prices jumped more than 25 percent to $14.53 on a steady rush toward the 52-week high of $17.43.

Some analysts expect it to continue. Station’s bull run was triggered, in part, by Robertson Stephens’ upgraded rating on Wednesday. Cited was the new Green Valley Ranch Station, which opened to rave reviews last month, as a prime factor.

With Station positioned to maintain its dominance in the local market, investors holding short positions decided it was time to buy, Glenn Christensen, the company’s chief financial officer, told GamingToday.

“Investors understand the supply and demand equation and the fundamentals of the business,’’ he said. “We don’t see an increase in the supply (of casinos) for three years. We also rely on slot revenue, which is much less volatile.’’

Other market observers aren’t jumping on the Station train just yet. Station will announce its quarterly earnings next Tuesday.