#1
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Casino stocks taking a hit
I see that after the MGM-Kerkorian deal was announced many of the other major casino stocks jumped as well with MGM. Now today after the market is taking a beating all the casino stocks are way down mainly MGM, LVS, WYNN, and also TRMP and LACO.
What are the possible reasons for this sell off? Is this traders taking a quick profit off the obvious play to jump on other casino stocks after the MGM deal was announced? I realize everything is down today so maybe traders are trying to adjust to the beating their taking today and are shedding their newly acquired stock that they aren't that familiar with? If this is the case, would a trend like this be predictable in the future that after a catalyst event (like the possible deal in this case) happens and other stocks in the same sector jump due to the hype, if the market has a downturn a few days after that these are the first stocks to go? |
#2
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Re: Casino stocks taking a hit
They're really not down that much. With markets down as much as 1.6% drops of 2-3.2% aren't of much note.
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#3
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Re: Casino stocks taking a hit
short term i dont know but with the economy slowing, inflation coming up from oil rises, the national debt likely to force tax increases, i dont think parking money in gambling stocks is the way to go.
yes and when the market is down those under pressure unload the stocks that are most volitile for them. |
#4
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Re: Casino stocks taking a hit
[ QUOTE ]
They're really not down that much. With markets down as much as 1.6% drops of 2-3.2% aren't of much note. [/ QUOTE ] I know they're not down much but compared to the casino & gaming sector that is actually up 3.75% these stocks seem to be acting differently and I'm just looking for the best way to potentially profit from a similar situation in the future. |
#5
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Re: Casino stocks taking a hit
[ QUOTE ]
short term i dont know but with the economy slowing, inflation coming up from oil rises, the national debt likely to force tax increases, i dont think parking money in gambling stocks is the way to go. yes and when the market is down those under pressure unload the stocks that are most volitile for them. [/ QUOTE ] Yes this is purely a short term play but I wouldn't be so bearish on all gaming stocks for the long haul. All your reasons are valid but don't effect properties like Wynn & LVS as much since their clientele is different. Plus these companies have increasing global interests like Macau. |
#6
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Re: Casino stocks taking a hit
[ QUOTE ]
short term i dont know but with the economy slowing, inflation coming up from oil rises, the national debt likely to force tax increases, i dont think parking money in gambling stocks is the way to go. yes and when the market is down those under pressure unload the stocks that are most volitile for them. [/ QUOTE ] but most of that isnt really true. Inflation last month was at the lowest levels of the last 12 months. Oil rpcies are at the same level as they were two years ago ~ 65$ a barrel. You have dems talknig about beign tough on taxes, and the economy doesnt really appear to be slowing as subprime contangion worries have been easing. As well, casino companies are generally good non cyclical companies as much of the revenue is from addicted gamblers and whales who arent affected too much by downturns |
#7
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Re: Casino stocks taking a hit
It's funny how the reds suck at this forum. Has mason posted here yet?
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