A popular advisory service has changed their recommendation on The Star Entertainment Group from BUY to HOLD and removed the price guide. When I’ve seen this call made in the past, it is often followed by a SELL.

I don’t invest in companies that profit from gambling and I wouldn’t support any business that profits from “engaging in a litany of unethical practices, such as the disguise of gambling transactions as hotel expenses, evading taxes, misleading investors, and having a ‘cavalier’ approach to risk and anti-money laundering regulations”.

AVOID!

I don’t invest in gambling stocks, and I generally don’t pay any attention to them because they don’t pass my filters. Some advisory services are calling Star a BUY and it riles me.

If you are happy to support and profit from a business that has “engaged in a litany of unethical practices, such as the disguise of gambling transactions as hotel expenses, evading taxes, misleading investors, and having a ‘cavalier’ approach to risk and anti-money laundering regulations” and get away with a $100 million slap on the wrist while continuing to collect the profits to pay the fine because ‘the NICC believes the potential harm to innocent third parties and the local economy would be too great if the business were to close’, then go your hardest!

Whats worse is this response by the NICC was predicted by many based on precedent. That’s why I avoid gambling stocks and anything associated with corruption. What did Star learn from Crown?