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-- and despite being down more than 45%.
Since its February IPO.
My next guest has an outperform rating on the stock joining me now is -- -- gaming analyst for Credit Suisse Joseph thank you for joining us.
So what do you like about seizes why do you have an -- form on the stock.
Sure what's really diversified plan on the domestic recovery in Las Vegas allow the regional gaming markets in addition.
The stock has optioned out if online gaming is approved on a federal basis sweeping Caesars is very well positioned to capitalize on it should it happen.
Joseph is the premise that casinos are recession proof I mean is that outdated or does that still hold true.
Now that's definitely -- he had a business took a huge hit during the downturn particularly -- Las Vegas Atlantic City you know a lot of other markets it has stabilized quite a -- come back in some markets up.
Right now we've hit a bit of a soft patch says the GP data is weak and and an unemployment has ticked up.
But long run you're seeing slow and supply growth in places like Las Vegas and other markets that should ultimately bode well.
As a consumer starts to come back and a lot of the big gaming company uses spends a lot of money investing in Macau which was a -- point just going through the roof with the revenues for those revenues and account -- -- sliding over the last eighteen months or so.
How much is that DUS space gaming companies.
Well interestingly Vegas has had a real nice uptick in the high end agent fox -- this is particularly -- lot of big gaming companies Las Vegas Sands Wynn and others had developed relationships abroad and so that businesses actually come over here.
In terms of -- -- you're right business has slowed down but keep in mind this is a forty billion dollar market -- mob of roughly four billion dollars in 2005.
You know casinos always think this the competition seems to go up and up OK so as not -- -- experienced -- buy lottery ticket but nevertheless it's -- temptation.
You know you have to lotteries online poker continues to gain a mean there's a lot of competition for casinos have a they overcome that.
Well it's really be about being positioned for future gaming opportunities that seizures is very active right now in terms of new jurisdictions in their pipelines to be just open up -- casino Cleveland.
They have another one coming online and Cincinnati and they are potentially gonna get a development in Baltimore.
My has was near Boston so it's sort about being ahead of the curve in anticipating future competition.
Yeah you know from from the from the peak back in 070 -- we're probably down about 20% across the board businesses and it generally has started to come back in and improvements certain locations but we're still.
Way below where we were on the same store basis vs 70809 period.
And so much now depends on the extras as they the food the -- -- the TDD -- shows all of this ugly being impacted and is that dragging down the casino revenue.
That's absolutely and that's what you need to really take these stories whether it's Las Vegas Sands Wynn and GM -- the next levels -- recovery in the -- -- -- particularly.
In Las Vegas but really the middle market consumer there's still struggling as a result that's why we see hotel room rates except her way below peak levels.
Very good -- -- kids think -- so much for joining us we appreciate it.
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