Gaming and Racing Stock Index Outpaces Market in 2016
by Barry Unterbrink, CRPC
The Horse Racing FLA’s index of gaming and racing stocks, which went gate-to-wire last year increasing +23.7%, continued ahead this year by rising +12.5% through June 23rd. (see our year-end web post on 2015’s numbers at https://goo.gl/R4SdnW
The broad performance of the stock market, as measured by the Dow Jones Industrial Average, has risen just 3.5% by comparison this year.
Of the 12 stocks included in our index, 9 rose in value thus far in 2016, while 3 fell in price. Four stocks logged double digit gains ranging from +26% to +47%, while the three losers were off much less; between -4% and -11% year-to-date.
Here’s the tally through Thursday:
Wynn’s Resorts: +47%
Eldorado Resorts: +34%
Isle of Capri Casinos: +32%
Pinnacle Entertainment: +26%
Caesars Entertainment: +9%
MGM Resorts: +8%
Canterbury Park Holding: +7%
Van Eck Vectors Gaming: +6%
Las Vegas Sands: +5%
Boyd Gaming: -4%
Churchill Downs: -10%
Penn National Gaming: -11%
Our gaming and racing stock index was created 1/1/15 and invested in equal dollar amounts in each stock. The index was rebalanced at the end of 2015 in equal dollar amounts for clarity, and to allow new investors a starting point who may wish to use it as a basis for establishing a real portfolio.
With just one week to go before the end of the second quarter, we’ll reserve our further analysis and handicapping of these stocks for our next report in July.
Also, with the market turmoil expected in today’s session – as a result of the BREXIT brouhaha in the United Kingdom, it will be very interesting indeed if our racing and gaming index underperforms or outperforms the general market. Let’s hope for the latter result!
In you have questions on our portfolio or for more details, please contact us at: firstname.lastname@example.org