The rumors that Ameristar Casinos is looking for acquisition offers have apparently been squashed now that company executives from the Las Vegas - based U.S. casino operator have expressly denied them. In conjunction with the release of their quarterly earnings statement closing 2006, new Ameristar CEO, John Boushy (who took over the top position following the death of company founder Craig Neilsen in November of last year), said the company is gearing up for an aggressive expansion campaign at casinos in Black Hawk, Colorado, St. Charles, Missouri, and Vicksburg, Mississippi.

Boushy stated that Ameristar is making strategic plans to double its revenue within five years. An ambitious outing to say the least, Boushy expressed confidence that with high-quality investments and continued profitable operations, target profit margins could be hit. Indeed, Ameristar has proven to outdo even the financial forecasts of casino gaming analysts predicting Ameristar's 2006 fourth-quarter stock value would reach no more than 2005 fourth-quarter closing prices at twenty-five cents per share. In actuality, stock prices hit thirty-one cents a share, bumping net earnings up from the year prior by $3.5 million (almost a 25% gain).

Much of this gain was due to cuts made on expenses and other costs while maintaining the integrity of all casino operations. As such, total revenue rose less than 1%. Cash flow, on the other hand, increased by 6.4% to end at slightly over $66 million. Yet, even with record setting earnings marks, casino gaming analysts were still speculating that Ameristar would be seeking buyers as a result of the recent death of Nielsen.

Certain gaming analysts with Prudential Equity Group are quick to negate Boushy's optimism, and have gone so far as to advise investors to stay clear of Ameristar. Their take on the situation is that Ameristar is going to be financially challenged due to construction delays caused by severe weather conditions at their St. Charles and Black Hawk casinos. And with tough competition from Pinnacle Gaming, Ameristar could face some challenges right from the outset. When all is said and done, however, Ameristar's stock continues to rise. It is up approximately $3 per share since the start of 2007.