10/16/2002 12:00 am EST
I am always intrigued when different advisors with very different investment strategies, both find investment opportunities in the same industry. John Dessauer is a value investor, using in-depth fundamental analysis. Jim Collins is a leading practitioner of modern portfolio theory, focusing on technical momentum and relative strength. Yet despite their differing approaches, both have found buying opportunities among stocks in the gaming sector.
Says John Dessauer, in his newsletter, Investor’s World, “Park Place Entertainment (
“Cash flow per share is estimated at $2.20 this year, with earnings expected to be $0.60. All new initiatives – debt reduction, property improvement, and cost control – will lead to wider profit margins and higher earnings per share. When any progress becomes obvious, valuation multiples will expand. Park Place is currently selling for less than four times cash flow. We rate this stock a buy. It can double for us in two years.”
Jim Collins, editor of Listed Insight, says, “Boyd Gaming (
“Technically, the stock took a big dip in mid-July, falling below $12 a share. The stock then steadily climbed higher and hit its 52-week high above $19 on September 27th. Boyd Gaming receives an A rating for accumulation/distribution and has a relative strength of 99 (out of 100).”