To anyone:
I find this bit of news interesting, even though it is news about Anchor Gaming(SLOT) rather than HOPR:
LOS ANGELES, Nov 12 (Reuter) - Shares of Anchor Gaming, a casino operator and maker of gambling machines, dropped 7-3/4 to 31-1/4 by mid-afternoon on Tuesday after the company said it is "re-evaluating" plans for expanding a Colorado casino.
Financial analysts said the company's announcement surprised investors, and its few details left the market with more questions than answers about Anchor's growth strategy.
"There are questions investors are asking and there's only one person who can answer -- that's (Chief Executive Officer)
Stan Fulton," said Danny Davila, analyst at Rodman & Renshaw.
Company officials were not immediately available.
In a statement issued late Monday, Anchor Gaming said it is reviewing plans to build a new gambling facility on land near its Colorado Central Station Casino in Black Hawk, west of Denver.
It cited its "commitment to maximize stockholder value" as the reason for the move, but did not offer any information about new ideas it had for the land or for expansion.
The company had planned to spend about $60 million to double casino space to 36,000 square feet and boost the number of slot machines to 1,280 from the current 600, according to research by Bankers Trust.
Since going public in 1994, Anchor has been viewed as a strong growth company, and its potential in 1998 and beyond was closely tied to expanding Colorado Central Station, which is the best performing casino in the state, analysts said.
"When you get a perception change on the part of people who've been buying this as a growth stock, and all of a sudden they don't have any visibility beyond 1998, (the stock) just seems to disapper from those portfolios," said Steve Schneider, analyst at St. Louis-based Stifel, Nicolaus & Co.
Though the news changes Anchor's long-term outlook, analysts said the near-term picture remains unchanged.
Indeed, Banker's Trust left its fiscal 1997, ending June, and calender 1997 earnings estimates unchanged at $2.67 and $3.10 a share, respectively.
For fiscal 1998, however, analysts cut estimates because the new casino was expected to open in March 1998. Bankers Trust cut fiscal 1998 to $3.28 a share from $3.45 and Stifel Nicolaus's Schneider lowered his number to $3.32 from $3.52.
Instead of building the new casino facilities, analysts said it is likely Anchor will build new parking on the land near Colorado Central Station. They said parking is badly needed in Black Hawk.
14:13 11-12-96
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