Dallas, Texas 03/14/2014 (FINANCIALSTRENDS) – Boyd Gaming Corporation(NYSE:BYD) known for its exciting range of casino offerings, reported an increase in the prices for its stock by over 16%.
Why, did BYD stocks see jump in prices?
Apparently, it was not due to any organic growth but due to the notification of the stake hedge fund Elliott Associates LP held in this company. The 7% stake by this technology portfolio fund manager, bodes good for the casino solutions provider.
It is a standard investment process to follow hedge fund activists in moving-into or away from a stock. This holds true for BYD as well. Following the interest shown by the high profile hedge fund in BYD, there is expectation that the turn BYD would take in the near future would be exciting, one way or the other.
For Boyd Gaming Corporation(NYSE:BYD) which along with the wide-spread of casino gaming services it offers, also holds extensive hold on physical properties on which it runs its casino. With an Hawaii based travel agency as well as captive insurance services in Hawaii, it hopes to make good in this travel segment as well.
Boyd Gaming Corporation(NYSE:BYD) can expect to see Elliott Associated moving into its real estate investments as a separate section.
This move would be possible, predict analysts if the main stake holders in the company, the Boyd family were to lower their position in the company by over 30%. Considering the fact that this may not be a likely possibility, the move forward for Boyd would definitely be different. The stock, however, until then will see some gains, until there is clarity on the next phase of activities it will involve itself in.