OCTOBER SURPRISE

Regional markets should rebound sharply from a horrible September.

  • Regional markets recorded the 2nd worst month of the year in September and ruined the quarter for the domestic gamers
  • As can be seen in the chart below, our model correctly predicted the downturn.  Now, we’re projecting that October will register only slightly negative YoY growth. The states will begin to release October revenues next week and that could be a positive catalyst for BYD, PNK, ISLE, and PENN.
  • Our focus is on BYD.  The company muffed its October commentary big time today and we think they may be low balling Q4 guidance.  We should catch a whiff of that with the release of State by State gaming revenues.

OCTOBER SURPRISE - 10 31 2013 4 04 33 PM