"Depending on the magnitude, a reduction in cost/scope would bepositive for the shares because it would reduce concerns aboutreturns…[and] improve negative sentiment/supply concerns for LasVegas as a whole since Echelon accounts for a significant portionof the capacity entering the market by 2010," states Curtis in amemo issued Monday afternoon.

Boyd is not exploring an outright cancellation as some havesuggested, Curtis says. "[Boyd] can continue to refine and evaluatethe project until groundbreaking scheduled for [the second quarterof 2007], and so until then, we think the possibility ofcancellation is remote," he says.

JP Morgan is maintaining its "Neutral" rating on Boyd's sharesin part because it believes EPS estimates may need to be reviseddownward over the next several months. Curtis' fourth quarter EPSestimate of $0.51 is nearly 20% lower than the consensus estimateof $0.61 in part because he does not believe the deceleration ofGulf Coast cash flows have been properly reflected in analysts'models.In addition, he says "we have a more conservative view onthe ability of the Las Vegas locals market to instantly absorb $1.6billion of new investment [Red Rock Station, South Coast] in [thesecond half of 2006], though over the longer term this is likely."The company's share price stood at $36.67 at the end of tradingTuesday, off $0.24 on the day. The company's share price hit a52-week low of $33.10 at the start of the month.