A VERY SOLID MOVE FOR STATION CASINOS

Implications: This is a very important move on the parts of Station Casinos and Colony Capital. It will allow them to make direct moves on new locations without the concern of investor approval. They also have a few properties that are in need of some minor make up in order to keep the hotels up to date with competition. Look for more investment outside of the Nevada market - the Indian gaming has caught their attention and they plan some new partnerships with different tribes especially in California...

Analysis: I have written more than one article regarding the possible buy out of Stations Casinos - I also suggested that it was more likely that a partnership would be formed by Colony and Stations that would benefit both parties. That is just what has happened, and certainly at this writing, a very good deal for the Fertita family. They were the former owners and primary stock holders. Here's the good news for the Fertita's, they have cashed out and still remain in a solid partnership to operate this company for several more years. It was a win/win deal for them and placed Colony Capital in financial control of one of the best casino companies that is now in operation.

There is quite a bit on Stations plate for the future - an example would be that they are now considering three new properties for the Las Vegas market. The first off the block should be Aliante Station on the northern portion of Rt. 215 that almost completely surrounds all of Las Vegas. They now have three other properties boasting a Rt.215 residence. The Fiesta Station, Green Valley Ranch and Red Rock Station. They also have two other pieces of land ready for development along the same corridor - Durango Station and another piece around 215 and North Decatur Blvd. They have created a very real monopoly along this heavily traveled road. This company has always had the foresight to see available land, purchase it, and keep it in the background until ready to develop. A pretty solid way of keeping competition out of the lucrative areas. Please note, that they are primarily properties that will be essentially devoted to local business. This is a venue that they have seen fit to conquer - they do it well - they present terrific customer service - great fine dining - and special food sources for the average Joe like a buffet and coffee shop to name just two. They are well acquainted with the needs of the local trade and have a special rewards system that takes care of the loyal customers, of which there are many.

The marriage between Colony Capital and Stations will be a good thing for Station Casinos. Having the Fertita's operating the company was a very real victory for Colony as they maintained the reason that this company has remained successful for so many years. Good business judgement on their part. I look for some very important announcements in the next six months...