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The Las Vegas Gaming Stock Report is written by Anthony Timmons.

Ameristar Gaming (ASCA)
Rating - Upgraded to Buy

Ameristar has pulled out all of its punches at the Reserve Hotel and Casino
in Henderson, Nev. Last weekend I stopped by the casino and for the first
time experienced an hour wait for the buffet. I have been to the casino many
times and it has never been quite that busy. More importantly, the casino
was very busy on a Sunday Afternoon (visitor travel day).

The traffic has picked up significantly at the casino thanks to hot weather
driving locals by the hotel on the way to the Lake Mead Recreational Area.
The traffic has also picked up due to aggressive comping promotions (earn
100 points - about $15 worth of play - get a free buffet, normally it is
over 1,000 points) and full page ads in the Las Vegas Review Journal
(morning daily newspaper).

While the aggressive comping could cut into profitability, most of the
machines were full with players (many with out the point comping cards). The
gaming drop appears to well compensate the lower margins in food and
beverage.

Aggressive investors may want to consider a position in the stock at this
level anticipating a surprise rebound in EBITA, cash flow and potentially
earnings. The stock is only suggested for aggressive investors at this time.

Visit the Ameristar Gaming (ASCA) chat forum.   Click here to enter.

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