earnings could be messy over the near term and possibly impacted for the next 12 (months) to 24 months.
Much of the surrounding area and feeder markets suffered considerable damage, which could certainly depress business in the near term. Pinnacle has the largest exposure to the market, which is a concern considering the recent impact to the company from Katrina.
Conversations with Strip operators indicate that business volumes over New Year's Eve in Las Vegas were up significantly year over year. Additionally, we believe expectations for the fourth quarter on the whole are low and operators could exceed them.
I don't know how they will get these companies to invest millions into these projects unless they are allowed to build them on land. They would not only protect the assets of the casino companies, but land-based casinos could benefit the market greatly.
We continue to like Shuffle Master's longer-term outlook and remain comfortable with the company's business model and revenue mix.
We continue to believe the acquisition would make strategic sense for Pinnacle, transforming it from a regional operator to a national casino company with an extensive development pipeline.
We believe Shuffle Master can continue to grow earnings per share at 25 percent to 30 percent.
We believe Red Rock will redefine a new development and experience standard for both the locals and Las Vegas Strip markets.
As we've repeatedly said, this is the type of announcement that is reflective of the strength of MGM Mirage management and its ability to find strategic opportunities globally when investors are least expecting it.
If Lake Charles avoids a direct hit, devastation to the primary feeder market could have a negative impact as coverage from business interruption insurance is not certain.
