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BYD - Boyd gaming corp


kai99

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What do you guys think of a restructured BYD. Management seems pretty focused on clearing debt and strengthening core business. On top of that expansion into online gaming. Looking at it as a possible turnaround. What do you guys think?

 

$525 million debt repaid

Annual interest expense reduced by $60 million (projected)

$100 million in free cash flow from Peninsula

 

 

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I owned this years ago and sold for a small profit.

 

I was off put by the fact that these guys could never really earn any serious money.

 

They were saddled with too much debt.  Additionally, they wrote off a TON of money on the Echelon project in Vegas.  Poor management in that case.

 

It appears they have 4.4BB in debt, so $500MM, while a good start, is not really moving the needle that much.

 

They also have big exposure to Atlantic City and Tunica, which are poor markets.

 

Book value is only $4.35, so you are paying a huge premium to book on a company that doesn't really make any money?

 

Better opportunities in the gaming sector...but I think the gaming sector is a poor choice at this point.

 

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