Joel Simkins
Trump tries to work new magic at aging Atlantic City casinos
Trump made his name building luxurious, outsized properties that permit people to live his version of the fantasy life, but without deep reserves of cash he has been unable to keep pace with the Atlantic City competitors who are out-Trumping Trump in the battle for those seeking a few days of pampered, prince-and-princess-like pleasures. "New places came to Atlantic City like the Borgata and revolutionized the market," said Joel Simkins, a casino analyst with the Prudential Equity Group. "But Trump's debt meant they weren't able to keep up."
Kerkorian making a new move in Las Vegas
There has been more than $40 billion in merger and acquisition activity in the casino industry since the start of 2006, said Joel Simkins, a Prudential analyst who follows gambling. That includes last year's $17 billion blockbuster private equity deal to take Harrah's, the world's largest casino company, private. "This is a trend that's been going on for the last seven or eight years," Simkins said, "but we've seen the pace of activity pick up significantly in this sector."
Trump's casino company evaluates "strategic corporate options"
Prudential Equity Group analyst Joel Simkins said in a client note on Friday that Trump Entertainment could make a good fit for Ameristar Casinos (ASCA), Pinnacle Entertainment (PNK), Penn National Gaming (PENN) or a private buyer.
WMS Industries Surges on Analyst Upgrade
Prudential Equity Group analyst Joel Simkins raised his rating to "Overweight" from "Neutral" and lifted his price target by $3 to $47. Simkins said in a client note that the company, which makes gaming machines, has some strong participation games that should drive earnings growth in fiscal 2008 and the future.
Stocks in the Spotlight Tuesday
Investors went all in on MGM Mirage shares, which gained 27%, after billionaire investor Kirk Kerkorian -- MGM Mirage's controlling shareholder -- said his Tracinda Corp. planned to enter negotiations with MGM to buy the Bellagio Hotel Casino and City Center properties. Tracinda also indicated it wishes to pursue strategic alternatives related to its investment in MGM Mirage. Prudential Equity Group analyst Joel Simkins wrote, "If successfully executed, we feel this will be a transformational event and value creation opportunity for MGM."
Ahead of the Bell: MGM Mirage
Simkins believes MGM's expansion plans, opportunities to use underutilized land and prime locations on the Las Vegas Strip will continue to fuel strength for the company. In addition, benefits from an increasing focus on real estate development, consulting services and brand licensing are not priced into shares, Simkins said.