RUSH IN ROULETTE: Is it time to risk a shot at casino shares?
The two big casino groups are battling the operational odds amid dour discretionary spending and their share prices have been wonky. But they could be smart long-term bets, writes Marc Hasenfuss
Investors not afraid of betting when the odds seem stacked against them might be tempted to have a flutter on the local gaming sector. In particular, they may want to look at the two large casino companies that have lately endured some serious share-price pressure.
The share price of Tsogo Sun, SA’s largest casino group, has drifted down 28% since peaking at a R31 high in August last year. Sun International, which is carrying a heavy debt load after revamping its local casino portfolio and increasing its exposure to the Latin American gaming sector, has seen its share price crumble by more than 50% over three years.