At the beginning of the month, Boyd Gaming Corp. announced that they were suspending work for up to a year on The Echelon, a $4.8 billion dollar complex in Las Vegas. Ground had been broken on the project last June but the ensuing year has not been kind to Vegas. The current credit crunch, along with rising unemployment and skyrocketing fuel costs, have reduced the number of tourists to the Strip. Thus far, Boyd has been unable to secure the financing needed to finish the development.
An analyst with Citigroup, Joshua Attie, complimented the financial discipline shown by the Boyd management team and said the delay eliminates significant financial risk for the company. Investors obviously agreed with the assessment as the stocks went up more than 30% after the announcement.