05.24.06
Extravagance
A few days ago I got my 2005 Annual Report for Ameristar Casinos Inc. (Nasdaq ASCA), of which I own a small amount of stock. The report is a huge, glossy magazine measuring twenty-two inches by thirteen inches. It came in a triangular cardboard box, and cost $7.20 to ship to me.
The report is handsome to be sure (and it quotes Frank Lloyd Wright). Still, it had the opposite effect on me than was intended. Reports such as this one should encourage investment in the company. But why would I want to invest in a company that spends its capital (my investment) on lavish annual reports? They should be spending it on more slot machines.
I have no problem with expensive advertising campaigns. My problem with this one is that it does not target customers. It targets investors. Investor interest may boost the stock price; but it will not add real value to the company. Although I haven’t decided whether I will keep the stock, this does not encourage me.
Ameristar Casinos Inc. 2005 Annual Report
