Gaylord Entertainment Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of hotel-and-resort operator Gaylord Entertainment (NYS: GET) hardly look entertaining today, falling as much as 12.9% on heavy trading.

So what: The stock was just downgraded to "hold" in tandem by analyst firms Baird, Jefferies, and FBR Capital. One firm cited valuation concerns and another pointed to a stalled turnaround effort.

Now what: While Gaylord's occupancy rates and average room prices flounder, Vegas hotels such as MGM Resorts (NYS: MGM) and Las Vegas Sands (NYS: LVS) are reporting better numbers and may be stealing customers from the Opry operator. The company is trying to forge a family-friendly image by signing a character licensing deal with Shrek owner DreamWorks Animation SKG (NAS: DWA) , but that effort won't pay dividends for years. Furthermore, the Gaylord Palms in Orlando faces stifling competition from the army of Walt Disney (NYS: DIS) resorts just down the street.

If Gaylord is a turnaround play in the making, the payoff looks very distant.

Interested in more info on Gaylord Entertainment? Add it to your watchlist.

At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies discussed here, though he once won a free night's stay at Gaylord Palms in a "Guitar Hero" tournament. True story. Motley Fool newsletter services have recommended buying shares of Walt Disney and DreamWorks Animation SKG. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.