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PNK, ISLE, LVS, ASCA, MNTG, MCRI, Gaming Stocks Undervalued

^{Published on 2011-05-31 07:10:16 - WOPRAI}
 

May 31, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Gaming sector and these stocks are the most undervalued as of today. PINNACLE ENTERTAINMENT INC (NYSE:PNK), ISLE OF CAPRI CASINOS (NASDAQ:ISLE), LAS VEGAS SANDS CORP (NYSE:LVS), AMERISTAR CASINOS INC (NASDAQ:ASCA), MTR GAMING GROUP INC (NASDAQ:MNTG), MONARCH CASINO & RESORT INC (NASDAQ:MCRI) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     PNK        PINNACLE ENTERTAINMENT INC          $14.48         $15.42         6.10% Undervalued           Gaming                 
     ISLE       ISLE OF CAPRI CASINOS               $8.90          $14.89         40.20% Undervalued          Gaming                 
     LVS        LAS VEGAS SANDS CORP                $41.38         $84.75         51.20% Undervalued          Gaming                 
     ASCA       AMERISTAR CASINOS INC               $22.93         $25.96         11.70% Undervalued          Gaming                 
     MNTG       MTR GAMING GROUP INC                $2.88          $3.47          17.00% Undervalued          Gaming                 
     MCRI       MONARCH CASINO & RESORT INC         $9.25          $11.29         18.10% Undervalued          Gaming                 

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

PINNACLE ENTERTAINMENT INC (NYSE:PNK) - Pinnacle Entertainment, Inc. develops, owns, and operates casinos, and related hospitality and entertainment facilities in the United States and internationally. As of December 31, 2009, the company operated seven casino destinations in the United States, which include LAuberge du Lac in Lake Charles, Louisiana; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort near Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; Boomtown Reno near Reno, Nevada; and The President Casino near the Lumiere Place complex. It also operates Casino Magic Argentina located in Neuquen, Argentina; and various smaller casinos in the Patagonia region of Argentina. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment was founded in 1935 and is based in Las Vegas, Nevada.

ISLE OF CAPRI CASINOS (NASDAQ:ISLE) - Isle of Capri Casino, Inc. develops, owns, and operates branded gaming facilities and related lodging and entertainment facilities in regional markets in the United States. It owns and operates 13 casino gaming facilities located in Black Hawk, Colorado; Lake Charles, Louisiana; Lula, Biloxi, and Natchez, Mississippi; Kansas City, Caruthersville, and Boonville, Missouri; Bettendorf, Davenport, Waterloo, and Marquette, Iowa; and Pompano Beach, Florida. The companys properties feature approximately 14,500 slot machines; 350 table games, including 95 poker tables; 3,000 hotel rooms; and 3 dozen restaurants. In addition, it operates a harness racing track at its casino in Florida. The company was founded in 1990 and is based in St. Louis, Missouri.

LAS VEGAS SANDS CORP (NYSE:LVS) - Las Vegas Sands Corp., together with its subsidiaries, develops multi-use integrated resorts worldwide. It owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and The Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Macao, The Venetian Macao Resort Hotel, and the Four Seasons Hotel Macao, Cotai Strip in Macau, the Peoples Republic of China. The company is also developing Marina Bay Sands, an integrated resort in Singapore; and Sands Casino Resort Bethlehem, an integrated resort in Bethlehem, Pennsylvania. Las Vegas Sands Corp. was founded in 1988 and is headquartered in Las Vegas, Nevada.

AMERISTAR CASINOS INC (NASDAQ:ASCA) - Ameristar Casinos, Inc. operates as a gaming and entertainment company in the United States. The company develops, owns, and operates casino, and related hotel, food and beverage, entertainment, and other facilities. It primarily offers slot plays, as well as a range of table games, including blackjack, craps, roulette, and poker. The companys signature dining concepts include steakhouses, buffets, and casual dining restaurants with sports bars. As of May 6, 2011, it operated a portfolio of eight casinos in seven markets, including Ameristar Casino Resort Spa St. Charles serving greater St. Louis, Missouri; Ameristar Casino Hotel Kansas City serving the Kansas City metropolitan area; Ameristar Casino Hotel Council Bluffs serving Omaha, Nebraska and southwestern Iowa; Ameristar Casino Resort Spa Black Hawk serving the Denver metropolitan area; Ameristar Casino Hotel Vicksburg serving Jackson, Mississippi and Monroe, Louisiana; Ameristar Casino Hotel East Chicago serving the Chicagoland area; and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nevada. The company was founded in 1954 and is based in Las Vegas, Nevada.

MTR GAMING GROUP INC (NASDAQ:MNTG) - MTR Gaming Group, Inc., through its subsidiaries, engages in the racing, gaming, and entertainment businesses. It owns and operates Mountaineer Casino, Racetrack & Resort in Chester, West Virginia; Presque Isle Downs & Casino in Erie, Pennsylvania; and Scioto Downs in Columbus, Ohio. The company operates slot machines, poker tables, and casino table games, including blackjack, craps, roulette, and other games, as well as offers live thoroughbred horse racing and on-site pari-mutuel wagering. MTR Gaming Group also operates Racelinebet.com, an account wagering service that provides online and telephone wagering on horse races. The company was formerly known as Secamur Corporation and changed its name to MTR Gaming Group, Inc. in 1996. The company was founded in 1988 and is based in Chester, West Virginia.

MONARCH CASINO & RESORT INC (NASDAQ:MCRI) - Monarch Casino & Resort, Inc., through its subsidiary, Golden Road Motor Inn, Inc., owns and operates tropically-themed Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada. As of December 31, 2009, Atlantis Casino Resort Spa featured approximately 61,000 square feet of casino space; a hotel and a motor lodge with 973 guest rooms; 10 food outlets; an enclosed year-round pool with waterfall; an outdoor pool; a health spa; 2 retail outlets offering clothing and resort gift shop merchandise; a full service salon for men and women; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention, and meeting room space. It also operated approximately 1,500 slot and video poker machines; 38 table games, including blackjack, craps, roulette, and others; a sports book; and Keno and a poker room. The company was founded in 1972 and is based in Reno, Nevada.

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