Penn National Gaming, Pinnacle Entertainment, Harrah’s Entertainment, Caesar’s Entertainment and other casino comanies showed robust health in 2004
US casino stocks show strong performance in 2004
According to Louisiana newspapers, the local gambling industry saw a lot of mergers and acquisitions among some of the biggest gambling companies last year. Stock prices of the different casino operators more than doubled in 2004.
The local casino companies experienced substantial growth. According to the list of Best Big Companies composed by Forbes magazine, Penn National Gaming was ranked second on its list of Top Performing Rookies. The company disclosed its plan to sell the underperforming Hollywood Casino in Shreveport to a small Nevada operator and to acquire Argosy Gaming for $1.4 billion. The move would make it the nation’s third-largest gambling operator.
According to Bizneworleans.com, casino companies with holdings in the local area also had a good year. Stock in Las Vegas-based Pinnacle Entertainment, owner of Boomtown New Orleans and Boomtown Bossier City, finished the year at $19.78, up 112 percent from $9.32 in 2003.
Industry observers also saw the very important negotiations regarding the proposed $9 billion merger agreement between Harrah’s Entertainment and Caesar’s Entertainment, which are the US two biggest gambling operators. The deal is likely to be completed this year.Harrah’s Entertainment, which operates the area’s only land based casino, Harrah’s New Orleans, closed 2004 with its shares at $66.89, up 37 percent from $48.57 at the end of 2003. Federal regulators gave final approval on the $1.45 billion acquisition of Horseshoe Gaming by Harrah’s. Stock in Caesar’s, the owner of Bally’s New Orleans Casino on the Lakefront, finished the year at $20.14, up 86 percent.
