Hedley Leisure and Gaming units downgraded
Last week ABN Amro downgraded HL
G units from a "buy" to a "hold" on speculation the freehold value
of pubs could decline, given the introduction of smoking bans in NSW
and the possible imposition of tax reform on
poker machines.
Analysts Robert Bitomsky and Fiona Buchanan said there had been no hard
evidence that legislative changes had undermined the value of the pubs,
but that there were enough pressures that might have a "material impact
on the portfolio".
"The general feedback is that the recent shift in conditions operating
a pub, particularly one that is highly leveraged to
gaming revenue, will become increasingly difficult," the analysts
said.