Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Boyd Gaming (NYSE:BYD) jumped 10% today after announcing an asset sale.
So what: Boyd is selling land on the Las Vegas Strip that was once going to be a development called Echelon to Malaysian company Genting Group. Genting is one of the largest casino operators in Asia and plans to start building a resort with 3,500 rooms and a 175,000-square-foot casino next year.
Now what: Boyd is getting about $4 million per acre, which is far less than land on The Strip was going for just a few years ago. Still, Boyd didn't have the money to build a resort, so this will free up money for other projects. I don't see this as a reason to buy the stock now, but if Boyd's core business picks up momentum, online gaming begins to grow, and the company is able to put the cash to work elsewhere, the stock should move higher. That's just too many moving pieces to be a buyer today.
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