Move to new land-based casino in Bettendorf comes as rumors surface Isle seeking a buyer

About the same time the Isle of Capri Casino, Inc. was telling Bettendorf officials last week it plans to move from its riverboat to a land-based facility, unconfirmed reports began circulating that the St. Louis-based gambling firm was in talks to sell out to a real estate investment trust.

While still unconfirmed, the rumors helped push the stock up more than $2 per share in the past week. The stock hit $10.71 per share today (7/7), a 52-week high, before closing at $10.12 per share.

The rumored sale talks apparently surfaced in a Duetsche Bank Research Note which claimed the Isle was "most likely" in talks with Gaming and Leisure Properties, Inc. (GLPI), a Real Estate Investment Trust (REIT), a recent spin-off of Penn National Gaming, Inc., of Wyomissing, PA.

The Isle recently wrote down the value of its Bettendorf riverboat casino and reported a $127.7 million loss for its 2013-14 fiscal year.

The company has significantly underperformed when compared to the S&P 500 and the Hotel, Restaurant & Leisure Industry, according to an analysis by TheStreet, which rated the company as a "Sell" with a ratings score of D+.