This Vegas Casino Operator Could Be a Recovery Winner
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Red Rock Resorts has a unique position in the casino industry as a Vegas-based casino that operates outside of the Strip. Toby Bordelon and Jason Hall discuss the company's third-quarter earnings report and what's in store.
Toby Bordelon recommends Red Rock Resorts. Redrockresorts is a casino operator mainly in the Vegas area.
Jason Hall is an off-strip casino operator.
Toby Bordelon is an expert on Las Vegas casinos. He recommends Red Rock Canyon as a good place to visit.
Jason Hall is a Vegas casino operator.
Toby Bordelon is in Las Vegas. He likes the place. The company has several luxury resorts. They have some property in Reno. Revenue went up 17 percent to $414 million. Net income was up 64 percent. The difference between the increase in revenue and the rise in net income is due to depreciation. It's because the company had fixed costs. When the pandemic came, the revenue grew faster.
This Vegas Casino Operator Could Be a Recovery Winner.
Vegas Casino Operator has a lot of income from Las Vegas. Most of it is in the Vegas area. They have some management fees for some Native American casinos. The company has 2.7 billion in debt. It owns all the land. Its business is based on sports betting. It's selling the Palms casino it used to own. On the conference call, the CFO said the margins are sustainable.
Toby Bordelon likes the management team of the Vegas Casino Operator. The stock is down a little bit, but he's not concerned about that.
Toby Bordelon is less reliant on the business and convention traffic that is going to be slow to return.
Jason Hall is curious about the reaction of the Vegas Casino Operator's stock. The stock is down about 10 percent. Jason Hall wonders if management has any information about staffing issues.
Toby Bordelon is concerned about the development of the land that the company owns. He thinks it's not a lot of development. Toby is not interested in the property development, he wants to develop the real estate.
It takes five years to recover from a casino accident.
