Stock of the day: Star Entertainment Group
Star Entertainment Group is battling severe financial and regulatory issues, causing its stock to plummet.
(AI video summary)
This video was created on 18 September for IG audiences by ausbiz.
Stock of the day: Star Entertainment
ASX code: SGR
Suggestion: Avoid
SGR's financial struggles continue
Star Entertainment Group, which runs casinos in Sydney, Brisbane, and the Gold Coast, is currently grappling with financial difficulties. It is in talks with its lenders due to unexpected cost overruns and issues with casino operations, resulting in a significant funding gap.
The company is under severe financial pressure and has informed the ASX that it is reviewing its financial health with advisors. It is currently in a trading halt because it has not yet released its full-year 2024 results. In its February half-year report, the company warned of a cost blowout of $220 million.
Disappointing stock performance
The stock recently closed at $0.45 per share, marking a decline of over 50% for the year up to August. Over the past five years, the share price has plummeted by an astonishing 88%.
It is suggest to steer clear of Star Entertainment, as the company needs to address its financial and operational issues before it becomes a viable investment option.
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