Eric Hausler
Casinos Are On A Roll
"What's important is that institutions think that gaming is a good place to put money. A lot of the net buyers have been the big funds," said Eric Hausler, gaming and lodging analyst at Susquehanna Financial Group, which produced the research.
Pennsylvania Jockeys for a Slot
If successful, the expansion would be another windfall for slot-machine makers such as International Game Technology (IGT:NYSE - commentary - research), Alliance Gaming (AGI:NYSE - commentary - research) and others, who received a boost this week when California signed an agreement with five tribal casino operators to allow for unlimited slot expansion. Hausler estimates that Pennsylvania could add between 35,000 to 50,000 slots over the next two to three years.
Eric Hausler quotes
"Early estimates that casinos could open within a few days are overly optimistic, and, at the least, we expect severe business disruption from the devastated areas for the next several months even if some of the casinos can get up and running over the near term."
Analyst sees diverse gaming on trek
While Las Vegas is- and will likely long remain- the largest single concentration of gambling halls on the planet, its future prosperity has become increasingly linked to the proliferation of smaller, "feeder" operations across the country. "The gaming industry is a collection of individual assets, and different companies have different strategies for running those assets," Hausler said.
Casino Stocks Riding High
And through the fourth quarter, recent research from Susquehanna Financial Group shows that institutional investors were continuing to invest in the sector. According to a report from analyst Eric Hausler, institutions managing $100 million in assets increased their net positions by $236 million, resisting the urge to take profits in a sector that performed well.
Whirlwind tour gives first-hand look at industry growth
Hausler's current top pick in the sector is Penn National Gaming which owns casinos and racetracks in Illinois, Missouri, Louisiana, Mississippi and other jurisdictions. "I am a big fan of Penn for their demonstrated track record of returns on invested capital," he said. "And they have a lot of growth opportunities in front of them with the acquisition." Hausler also likes Station Casinos Inc., a chain favored by locals in Las Vegas.
Income falls at Atlantic City casinos
The results do not reflect the unprecedented three-day casino shutdown in July caused by a state budget impasse. "Considering all the fears about a consumer slowdown and rising interest rates ... I thought the numbers looked pretty good for the market," said analyst Eric Hausler of Bear Stearns.