Endeavour (ASX:EDV) Been reading a few articles about EDV and the effect the VIC gaming restrictions will have on their earnings. EDV are looking at a 10-20% hit to hotel earnings which will impact EBIT earnings by 5-6%, according to one analyst. This will no doubt impact profits and possibly dividends if the fall in earnings is round the 5-6% and why the sell off and fall in share price. But for those with a longer-term view and backing the fundamental qualities of the business, by the looks of it, saw this as a good opportunity to buy a quality company at a discounted price!
Good comments Anton. Everything you read online indicates that alcohol sales during recessions are fairly resilient, and while growth may flatten off, rarely go into decline. Only thing I'm concerned about with Endeavour is that other state governments, being an unimaginative lot, might decide to play copycat with Victoria's legislation, leading to further loss in earnings. Anyway, just a theoretical risk - thanks for your thoughts.
