Star Entertainment share price rebounds 8% on Wednesday

Star shares might finally have found a bottom…

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Key points
  • Star Entertainment has had one of its worst weeks ever
  • The ASX 200 gaming share was smashed on Monday after a disappointing update
  • But today, we can say that the shares might have finally found a bottom

It's probably fair to say that this week has been one of, if not the, worst week in the history of the Star Entertainment Group Ltd (ASX: SGR) share price. Star, an ASX 200 gaming and casino share, fell off a cliff on Monday when the company released an earnings and guidance update.

As we covered at the time, Star reported a big drop in revenue from its Sydney casino, as well as a large rise in costs and headcount. The company also told investors to expect a non-cash impairment charge of between $400 million and $1.6 billion when the company delivers its next earnings report.

It's probably an understatement to say that investors were not impressed. By the end of Monday's session, Star shares fell almost 21% to their lowest price on record. Yesterday, the pain kept coming. The company fell another 13.4% to find a new all-time low of $1.28 a share.

Take a look at the damage for yourself:

But today, it appears the wounds have been staunched.

A close up of a casino card dealer's hands shuffling a deck of cards at a professional gambling table with the eager faces of casino patrons in the background.

Image source: Getty Images

Star share price finally finds a bottom

The Star share price is currently on the rebound so far this Wednesday. At the time of writing, the ASX 200 gaming stock has rebounded by a pleasing 8.19% back up to $1.39 a share.

There's been no fresh news from Star since its dramatic guidance update on Monday. So it appears investors have finally decided that the Star share price has found its bottom. That would explain why the shares are bouncing back up so far this Wednesday. But even so, the company is still sitting at a horrible 25.9% loss from where it closed last week.

The company is also down more than 78% from its last all-time high. That was back in early 2018 and saw the company above $6 a share.

At the current Star Entertainment share price, this ASX 200 gaming share has a market capitalisation of $1.41 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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