Station management and Colony Capital blazed a trail last year in taking the company private, a trail now potentially headed for bankruptcy. That’s what happens when one levers up at the highest multiple, at the peak of market and the peak of the easy money era.
Station is now blazing another trail in eliminating employer matching contributions to employee 401(k) plans. Like many gaming operators, Station has laid off employees this year but this is the first I’ve heard of a gaming company cutting benefits. It’s hard to believe that employee morale and service levels won’t suffer. Station’s employees have seen coworkers laid off and now their benefits cut at the same time their 401(k)s are likely down significantly already with the stock market crash.

Whether this is the right move for Station at this juncture is debatable, but it certainly adds to the list of potential competitive disadvantages vis-à-vis Boyd Gaming in the locals Las Vegas market. Unlike Station, BYD is on the right side of the liquidity trade. We’ve written extensively on the advantages liquidity provides in this environment including:

• The ability to acquire cheap and strategic assets or companies in a buyer’s market with few buyers
• More cash for advertising, marketing, and promotional activity
• Liquidity to upgrade slot floor – this is a biggie
• Better maintained facilities overall

Better customer service should be the next opportunity for BYD to steal share. Employee relations are very important in this labor intensive and service oriented business. Happy employees provide better service. Ask Steve Wynn. Hopefully, BYD will capitalize.

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more