XTRN which is the symbol for the Las Vegas Railway Express has been dropped from our list of Vegas and casino stocks because its plans for passenger train service between Southern California and Las Vegas has been put on ice or derailed -- you pick the term you'd like to use.  The company is now trying to market itself as the provider of luxury rail cars with luxury services but it doesn't have any deals yet with any railroads and that market has plenty of competitors.  It is also trying to become a rail travel agency.

Las Vegas Railway Express is but one of the companies that wants to offer passenger train service between Southern California and Vegas.  Other projects include a proposed high speed rail line that is multi-millions of dollars and several years away, plus another line to operate on existing tracks known as the Z Train.  A report on the X Train and the Z Train is on our website on our "Travel / Vacation" page.  However, at this time is appears that the high speed rail project will not receive federal funding.

There is not much public information about the Z Train either, but we have learned that the Z Train project is now being called the Pullman Company and see our report on the "Travel / Vacation" page.

Of course there is also a lot of discussion and speculation about a high speed rail line in California that will be partially funded by State and Federal taxpayer money -- but it should be pointed out that the government's high speed rail line is not planned to go to Vegas.  There is another group with plans for a high speed rail line to Vegas which was called DesertXpress and is now called XpressWest but that is not part of the high speed line project that has federal funding.  But XpressWest in July of 2013 was told it will not get federal funding and that pretty much derails this project.  It still might try to get federal funding or come up with some private funding.  It had been making plans to coordinate with the Los Angeles Metro train system to link to passenger trains in northern Los Angeles County and ultimately to Victorville where it expects to have its station for departures to Vegas.  Meanwhile, we have to wonder what a downgrade of U. S. debt and rising interest rates could do to any fund-raising and investment for projects such as these?

About the Vegas Economy

One thing is certain: Las Vegas can't be healthy if the American economy isn't healthy. There are doubts about the lingering sluggishness in the economy and that is not allowing Las Vegas and other gambling meccas to recover. And there are more worries about a double dip recession despite the talk about a recovery. Vegas can't get more revenue when the rest of the country is pinching pennies and worried about jobs.

Two years ago I said it was possible that the "easy money" to be made in the casino stocks might be behind us. Now, I'm sure of it. The easy money making time is over.  Vegas and gaming have a long way to go before full recovery and it will depend on the overall economy.

Best wishes, Alan Mendelson