SKC fell -3.9% on Thursday, taking the NZ-based gaming and casino stock down to fresh 3-year lows. It doesn’t look as bad as Star Entertainment (SGR), but neither portrays an exciting investment picture. The regulators have been all over the sector, with SKC’s Adelaide casino under threat of losing its licence to operate in NZ over a potential breach of gambling harm minimisation rules – it has casinos in Auckland, Hamilton, and Queenstown. It all feels too hard to us, and chief executive Michael Ahearne seemed to agree last month when he resigned as the Adelaide casino owner braces for a potential multimillion-dollar fine and the loss of its New Zealand licence.
- We see no reason to guess where SKC will/may find a bottom; it could easily be another 20-30% lower.
MM is neutral SKC at best
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