Keith bought BYD in the Hedgeye Virtual Portfolio at $8.71. According to his model, the TRADE range for BYD is between $8.62 and $9.37. There is TREND support at $6.71.
Boyd Gaming has been a laggard in the regional gaming space past few year. The sentiment surrounding the name is negative - JP Morgan and Lazard recently downgraded the stock and short interest is very high. We’ll make this contrarian call due to better than expected performance in Locals Las Vegas and Atlantic City. A near-term earnings beat is likely and management should provide positive commentary on 2012, particularly as the LV Locals market starts to show consistent, albeit slow, growth going forward. Any catalyst should impact the stock meaningfully given the attractive FCF valuation and negative sentiment.