Top 5 Gambling Stocks for 2007
In this column, we'll unleash the best gambling stocks in 2007 and give you
the 5 companies we believe will help your portfolio. Each stock is evaluated
and assessed based on a variety of factors, including management philosophy,
growth opportunity, risk and price per share. We'll give you company
background, contact information, stock and ticker symbols, Web site
addresses, as well as insider tips on reasons to purchase, possible
shortcomings, and a snapshot of historical financial figures. 1. Churchill
Downs Current Price >> $40.65 With the passing of the Unlawful Internet
Gambling Enforcement Act (UIGEA) in October 2006, the United States
horseracing industry stands to benefit the most. There is no other company
better positioned than Churchill Downs. Over the past 5 years, the company
has traded in a tight range between $35-$45 per share. The new law blocking
financial transactions to offshore gambling companies stands to benefit the
racing and pari-mutuel companies. We believe Churchill is poised to break
out of the 5 year trading range. Churchill Downs 2007 expectation: $54.50 2.
Las Vegas Sands Current Price >> $89.03 Sands is the largest gambling
company in the world, with a total outstanding market cap of around $31
billion dollars. They own and operate The Venetian, The Sands Expo and
Convention Center in Las Vegas, Nevada, and The Sands Macao Casino in Macao,
China. The Company is also in the process of developing additional casino
resorts and properties in Las Vegas and Macao, including The Palazzo Resort
Hotel Casino, which will be connected with The Venetian. There is no other
gambling company that possesses the shear cash as Sands. Their return on
investment (ROI) in Macau has been unbelievable. We expect them to continue
their dominance throughout 2007. Las Vegas Sands 2007 expectation: $112.80
3. Penn National Gaming Current Price >> $41.59 Penn is probably the most
diversified gambling company in the industry. They own and operate top-notch
casinos in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi,
Missouri, Ontario and West Virginia. Penn National Gaming also owns 1
racetrack and 6 OTWs in Pennsylvania, a racetrack in Ohio, a racetrack in
West Virginia and a racetrack in Maine, and through a joint venture, owns
50% of a racetrack in New Jersey. This Pennsylvania based gambling outfit
has all the makings of an industry leader. We expect continued growth in
2007 and additional real property investment for the company. Penn National
Gaming 2007 expectation: $51.29 4. Harrah's Entertainment Current Price >>
$82.79 What would the industry be without Harrah's? They are the flashiest
casino-entertainment provider in the world, owning 39 gambling casinos in
the USA. They operate gambling casinos primarily under the Harrah's, Caesars
and Horseshoe brand names, and include 20 land-based gambling casinos, 11
riverboat or dockside casinos, 4 casinos on Indian reservations, 2 casinos
on cruise ships, a combination greyhound-racing facility and casino, and a
combination thoroughbred racetrack and casino. The Company's facilities have
an aggregate of approximately three million square feet of gaming space and
40,000 hotel rooms. They're strategic acquisitions around the world make
them a viable candidate for 2007. We expect a 10-15% growth rate from the
company next year. Harrah's Entertainment 2007 expectation: $95.00 5. Isle
of Capri Casinos Current Price >> $26.77 We feel the most underpriced stock
in the group is Isle of Capri. They have consistently proven themselves
year-in and year-out. At just under $30 dollars per share, ISLE is a
bargain. They are a developer, owner and operator of branded gaming
facilities and related lodging and entertainment facilities in markets
throughout the United States and internationally. Isle of Capri Casinos
wholly owns and operates a pari-mutuel harness racing facility in Pompano
Beach, Florida, a location with double and possibly triple digit growth
rates for 2007. The company is based out of St. Louis Missouri and manages
casinos all across the US and in the Bahamas. They're CEO, Bernard
Goldstein, is considered one of the most intelligent executes in the entire
industry. Isle of Capri Casinos 2007 expectation: $33.60
the 5 companies we believe will help your portfolio. Each stock is evaluated
and assessed based on a variety of factors, including management philosophy,
growth opportunity, risk and price per share. We'll give you company
background, contact information, stock and ticker symbols, Web site
addresses, as well as insider tips on reasons to purchase, possible
shortcomings, and a snapshot of historical financial figures. 1. Churchill
Downs Current Price >> $40.65 With the passing of the Unlawful Internet
Gambling Enforcement Act (UIGEA) in October 2006, the United States
horseracing industry stands to benefit the most. There is no other company
better positioned than Churchill Downs. Over the past 5 years, the company
has traded in a tight range between $35-$45 per share. The new law blocking
financial transactions to offshore gambling companies stands to benefit the
racing and pari-mutuel companies. We believe Churchill is poised to break
out of the 5 year trading range. Churchill Downs 2007 expectation: $54.50 2.
Las Vegas Sands Current Price >> $89.03 Sands is the largest gambling
company in the world, with a total outstanding market cap of around $31
billion dollars. They own and operate The Venetian, The Sands Expo and
Convention Center in Las Vegas, Nevada, and The Sands Macao Casino in Macao,
China. The Company is also in the process of developing additional casino
resorts and properties in Las Vegas and Macao, including The Palazzo Resort
Hotel Casino, which will be connected with The Venetian. There is no other
gambling company that possesses the shear cash as Sands. Their return on
investment (ROI) in Macau has been unbelievable. We expect them to continue
their dominance throughout 2007. Las Vegas Sands 2007 expectation: $112.80
3. Penn National Gaming Current Price >> $41.59 Penn is probably the most
diversified gambling company in the industry. They own and operate top-notch
casinos in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi,
Missouri, Ontario and West Virginia. Penn National Gaming also owns 1
racetrack and 6 OTWs in Pennsylvania, a racetrack in Ohio, a racetrack in
West Virginia and a racetrack in Maine, and through a joint venture, owns
50% of a racetrack in New Jersey. This Pennsylvania based gambling outfit
has all the makings of an industry leader. We expect continued growth in
2007 and additional real property investment for the company. Penn National
Gaming 2007 expectation: $51.29 4. Harrah's Entertainment Current Price >>
$82.79 What would the industry be without Harrah's? They are the flashiest
casino-entertainment provider in the world, owning 39 gambling casinos in
the USA. They operate gambling casinos primarily under the Harrah's, Caesars
and Horseshoe brand names, and include 20 land-based gambling casinos, 11
riverboat or dockside casinos, 4 casinos on Indian reservations, 2 casinos
on cruise ships, a combination greyhound-racing facility and casino, and a
combination thoroughbred racetrack and casino. The Company's facilities have
an aggregate of approximately three million square feet of gaming space and
40,000 hotel rooms. They're strategic acquisitions around the world make
them a viable candidate for 2007. We expect a 10-15% growth rate from the
company next year. Harrah's Entertainment 2007 expectation: $95.00 5. Isle
of Capri Casinos Current Price >> $26.77 We feel the most underpriced stock
in the group is Isle of Capri. They have consistently proven themselves
year-in and year-out. At just under $30 dollars per share, ISLE is a
bargain. They are a developer, owner and operator of branded gaming
facilities and related lodging and entertainment facilities in markets
throughout the United States and internationally. Isle of Capri Casinos
wholly owns and operates a pari-mutuel harness racing facility in Pompano
Beach, Florida, a location with double and possibly triple digit growth
rates for 2007. The company is based out of St. Louis Missouri and manages
casinos all across the US and in the Bahamas. They're CEO, Bernard
Goldstein, is considered one of the most intelligent executes in the entire
industry. Isle of Capri Casinos 2007 expectation: $33.60
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