Investors who like to bet on casino stocks put their money on Boyd Gaming, Friday.
They seemed to like hearing that Boyd had decided to delay the construction of its partially built Echelon casino project on the Las Vegas Strip; shares went soaring up as much as 30%.
The move left some investors wondering if Boyd might walk away from the project all together. About 8 stories of the building are already underway.
"No, we have no intention of doing that," says CEO Keith Smith on Fast Money. "It’s simply a change in timing, not a change in strategy. The project is important to the future of our company."
The construction delay overshadowed news that Boyd was suspending its quarterly dividend. The company, whose shares had been falling for nearly a year, also announced a $100 million share repurchase program and posted lower second-quarter profit as the U.S. economic slowdown reduced gambling revenue.
Traders how do you play?
I don’t think a rally because they’re not building something is good news, says Guy Adami. If you want to gamble, play it for a trade.
It’s tough to buy any of the casino stocks, adds Tim Seymour, until we know more about the future of economy and consumer spending.
And there’s nothing anyone can do to buck that trend, adds Jeff Macke with disgust.
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On Aug 1, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Macke Owns (COST), (MSFT), (EMC), (WMT); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (RIG); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (XLF), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (CSCO), (F), (INTC), (MER), (MSFT); Seygem Asset Management Is Short (FXI), (VIP)