Global Cash Access Holdings, Inc. (NYSE: GCA) is seeing a true death spiral. An SEC filing shows that Harrah’s is not renewing its contract that expires at the end of November 2010. Harrah’s, by the way, happens to be GCA’s best customer. At 10:30 AM EST shares were down 37% at $4.30 on almost 5 million shares. There is an intra-day low print listed at $3.46, but that appears to be a market order that may have been well under the bid-ask at the time. The stock opened at $6.51, so it has been a brutal day.
GCA’s market cap is now just under $290 million and the new 52-week trading range is $3.46 to $9.26. The average volume here is only about 300,000 shares.
No stock options appear available in Global Cash Access.
Michael B. Sauter