PINNACLED IN ARGENTINA

The Argentinean stock market plunged 11% today on news that the government will nationalize private pensions to the tune of $29 billion. Government bonds are now yielding 24%. The fall in commodity prices is already taking its toll on an economy that generates the majority of its export revenue from raw materials. The government’s cash grab could be another step to a governmental and/or economic collapse.

While buried in the international section of the PNK’s EBITDA tables, Casino Magic Argentina actually generated almost $15 million of EBITDA in 2007, or 9% of total company EBITDA. This is a real number and it is very conceivable that this EBITDA could go away.