A Second Run For Circus Circus

Casino stocks have been a losing bet all year. Most of them have tanked because of the slump in Las Vegas. Circus Circus Enterprises (CIR) has been no exception, with its stock at just 16, down from 26 in mid-March. On top of the glut of hotels in Las Vegas, Circus stock also has been reeling from dashed hopes of a takeover by Hilton Hotels. Talks between the two ended in late March--with no cigar. Chief reason: price. Circus officials gave other reasons for the talks' collapse, including a possible large tax liability. But one investment manager contends that Circus at the time simply wanted more money than Hilton was willing to pay, said to be around 28 a share.

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