Top 5 Gambling Stocks for 2007

In this column, we'll unleash the best gambling stocks in 2007 and give you the 5 companies we believe will help your portfolio. Each stock is evaluated and assessed based on a variety of factors, including management philosophy, growth opportunity, risk and price per share. We'll give you company background, contact information, stock and ticker symbols, Web site addresses, as well as insider tips on reasons to purchase, possible shortcomings, and a snapshot of historical financial figures.

1. Churchill Downs (SYMBOL: CHDN) Current Price >> $40.65

With the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006, the United States horseracing industry stands to benefit the most. There is no other company better positioned than Churchill Downs. Over the past 5 years, the company has traded in a tight range between $35-$45 per share. The new law blocking financial transactions to offshore gambling companies stands to benefit the racing and pari-mutuel companies. We believe Churchill is poised to break out of the 5 year trading range.

Churchill Downs 2007 expectation: $54.50

2. Las Vegas Sands (SYMBOL: LVS) Current Price >> $89.03

Sands is the largest gambling company in the world, with a total outstanding market cap of around $31 billion dollars. They own and operate The Venetian, The Sands Expo and Convention Center in Las Vegas, Nevada, and The Sands Macao Casino in Macao, China. The Company is also in the process of developing additional casino resorts and properties in Las Vegas and Macao, including The Palazzo Resort Hotel Casino, which will be connected with The Venetian. There is no other gambling company that possesses the shear cash as Sands. Their return on investment (ROI) in Macau has been unbelievable. We expect them to continue their dominance throughout 2007.

Las Vegas Sands 2007 expectation: $112.80

3. Penn National Gaming (SYMBOL: PENN) Current Price >> $41.59

Penn is probably the most diversified gambling company in the industry. They own and operate top-notch casinos in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, Ontario and West Virginia. Penn National Gaming also owns 1 racetrack and 6 OTWs in Pennsylvania, a racetrack in Ohio, a racetrack in West Virginia and a racetrack in Maine, and through a joint venture, owns 50% of a racetrack in New Jersey. This Pennsylvania based gambling outfit has all the makings of an industry leader. We expect continued growth in 2007 and additional real property investment for the company.

Penn National Gaming 2007 expectation: $51.29

4. Harrah's Entertainment (SYMBOL: HET) Current Price >> $82.79

What would the industry be without Harrah's? They are the flashiest casino-entertainment provider in the world, owning 39 gambling casinos in the USA. They operate gambling casinos primarily under the Harrah's, Caesars and Horseshoe brand names, and include 20 land-based gambling casinos, 11 riverboat or dockside casinos, 4 casinos on Indian reservations, 2 casinos on cruise ships, a combination greyhound-racing facility and casino, and a combination thoroughbred racetrack and casino. The Company's facilities have an aggregate of approximately three million square feet of gaming space and 40,000 hotel rooms. They're strategic acquisitions around the world make them a viable candidate for 2007. We expect a 10-15% growth rate from the company next year.

Harrah's Entertainment 2007 expectation: $95.00

5. Isle of Capri Casinos (SYMBOL: ISLE) Current Price >> $26.77

We feel the most underpriced stock in the group is Isle of Capri. They have consistently proven themselves year-in and year-out. At just under $30 dollars per share, ISLE is a bargain. They are a developer, owner and operator of branded gaming facilities and related lodging and entertainment facilities in markets throughout the United States and internationally. Isle of Capri Casinos wholly owns and operates a pari-mutuel harness racing facility in Pompano Beach, Florida, a location with double and possibly triple digit growth rates for 2007. The company is based out of St. Louis Missouri and manages casinos all across the US and in the Bahamas. They're CEO, Bernard Goldstein, is considered one of the most intelligent executes in the entire industry.

Isle of Capri Casinos 2007 expectation: $33.60

December 27, 2006
Posted By Susan Torres
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!