Pinnacle Entertainment's (NYSE: PNK) buyout of Ameristar Casinos (ASCA.DL) appears to be a done deal, but consolidation does little to make this or any other regional gaming stock attractive to investors. Pinnacle, Ameristar, Caesars Entertainment (CZR), and Penn National (PENN -1.00%) have all seen negative organic growth over the past year as more competition outstrips demand. The Motley Fool's gaming analyst covers the red flags he sees in the industry below.
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Consolidation Won't Help Regional Gaming Stocks
Pinnacle will soon takeover Ameristar, but two bad companies don't make one good one.
About the Author
Travis Hoium is a contributing Motley Fool Stock Market Analyst covering solar energy, technology, and growth stocks. Prior to The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a B.S. in Mechanical Engineering from The University of Minnesota and a M.B.A. from The Carlson School of Management at the University of Minnesota. When he’s not thinking about stocks, he spends time with his wife and three kids, and periodically competes in half-Ironman races.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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