casino stocks

[indigo]

Curious if the forum has opinions about casino stocks. Are there any casino stocks that have a high risk / high reward factor that are worth looking into? Also are there any long and steady casino stocks with an upward trend. I’d like some recommendations because there are so many of these stocks it’s hard to find the best of breed or upward movers.

Thanks all,
NorCal

[deepinwonder]

I was very impressed with the CEOs from Harrahs and Wynn Resorts, in some tv special I was watching on the casino business. Cramer also mentions Boyd Gaming and then there is Trump, but I don't like him that much.

[deepinwonder]

I picked up some WYNN, yesterday, see my posts under "entertainment and comfort stocks" for further info. Harrah's is really cranking, this morning, too. 8)

[indigo]

I've been eyeing this sector especially Harrah's. I think short term Harrah's has the best potential. Although, WYNN looks under valued and will probably have a bigger bounce within a year. The decision between WYNN and Harrah’s is better management vs better potential. Honestly I’m in a juxtaposition between the two stocks, but I will make a move by next Friday. I defiantly ruled out Trump, unless we are discussing hair transplant stocks. :P

[deepinwonder]

Big gains, today, watch for a good entry point. Wasn't interested in Trump, either. I'm with you, there.

[axb8000]

I like Harrahs but plan to stay out of the Casinos for a little bit. A few weeks ago after Cramer recommended Harrahs the earnings report came out and it was so-so. The managment though made is sound great and the stock got smacked a few days. He became nervous about the sector and I was too. But maybe now everything has cooled down.

[deepinwonder]

Harrah's is holding it's price and rising faster than the other ones. Maybe I should have picked that one. :roll:

[deepinwonder]

Cramer gave a very skewed picture of Vegas casinos, tonight, in order to pump this Penn Gaming stock he likes and dissed some very good stocks. They do not mind competition from other casinos being built in
Vegas, those owners have a "the more the merrier" attitude, because it brings new customers into their casinos, too. Following is an article from the Las Vegas Sun, if anyone is interested. They are not hurting, they are raking in record profits.

[deepinwonder]

July 12, 2005
Wynn resort boosts record May gaming win
Vegas locals market also remains hot
By Cy Ryan <cy@lasvegassun.com>
SUN CAPITAL BUREAU
CARSON CITY --

Another month, another record win. Make that Wynn. Fueled by the opening of Wynn Las Vegas and overall strong play in Las Vegas, Nevada casinos won $1.02 billion from gamblers in May, the best May ever.
The 10-figure monthly haul was the second highest monthly win in history, trailing only March of this year by about $7 million. The May total was an increase of 12.5 percent from the $910.2 million won in May 2004, the biggest percentage jump this year, topping March's 10.9 percent increase.

Five of the seven gaming markets in Clark County posted double digit increases compared to a year ago, the state Gaming Control Board reported today. Gov. Kenny Guinn said, "May marked the 10th straight increase Nevada has had in monthly gaming win" and "The Las Vegas market continues to exhibit tremendous strength with no signs of a slowdown in the near future."

The win reported by the Las Vegas Strip casinos grew 14.8 percent to $538.8 million and it compares with a strong 2004 May when win rose 16.1 percent.

Frank Streshley, senior research analyst for the Control Board, said May was the first full month of operation for Wynn Las Vegas, which opened April 28. He said the Wynn did not "cannibalize" business -- steal customers that might otherwise have lost at other casinos. "They grew the market," said Streshley, noting many other casinos topped their May 2004 win.

Strip gaming results, Streshley said, were helped by the Winky Wright-Felix Trinidad fight May 14 at the MGM Grand and the Tiger Woods Benefit May 22 at Mandalay Bay.

The win in May was even more impressive, Streshley said, because there was one less Saturday in the month compared to a year ago. Saturday is the biggest money-making day in the casino business.

Bear Stearns gaming stock analyst Joe Greff said revenue growth on the Strip was "impressive" given that May had one less weekend than a year ago and that those gains were achieved on top of 13 percent growth in May 2004.

Slot revenue drove results on the Strip, rising 20 percent in spite of an 8 percent decrease in volume, Greff said in a research note today. A 27 percent increase in table game volume drove table revenue 8 percent higher in May.

Revenue at baccarat -- the game of choice for high rollers -- rose 22 percent in May. Volume at luxury properties such as Wynn Las Vegas and Bellagio were strong that month, Greff said.

The win reported by casinos is tabulated before business expenses and taxes are deducted. For the current fiscal year the casinos have paid $712.1 million in taxes, an increase of 5.1 percent over the 2004 fiscal year, and 0.8 percent higher than the Economic Forum predicted in early May.

The board said that the 346 casinos statewide reported slot machine winnings of $690.3 million, a 16.1 percent gain from May 2004. Penny slot win reached $82.3 million, an increase of 133 percent, while penny-slot revenue trailed the nickel slots by only $2.2 million.

Table game revenue statewide increased 4.9 percent. Baccarat revenues grew 21.3 percent but the 21 games fell by 8.3 percent and craps revenue was down 7.5 percent. Roulette statewide increased 5.1 percent; sport pool gross revenue rose 3.4 percent; and poker win increased 33.5 percent.

The 14.8 percent increase by the 43 casinos on the Las Vegas Strip was the biggest percentage gain for the state's biggest market this year. The previous high was 10.9 percent in March. The resorts reported $286 million in win from slot machines, a 20.2 percent increase.

Streshley said table-game win grew 8.1 percent on the Strip to $245.3 million. Baccarat win grew 21.5 percent to $58.3 million; blackjack win dropped by 12.3 percent to $76 million; craps inched up 0.6 percent to $27 million; roulette gained 13.5 percent to $22.2 million; and the sports pool fell 0.2 percent to $2 million.

For the second straight month, gaming win fell in the 19 downtown Las Vegas casinos. The clubs posted a win of $58.1 million, down 3.3 percent. Slot machine revenue rose 5.3 percent but table game winnings fell 20.8 percent. Streshley said the table game market in downtown Las Vegas has struggled for the past six months.

The Las Vegas locals markets posted results every bit as strong as the Strip's. North Las Vegas' 11 casinos posted a record win of $29.4 million, up 41.8 percent. Slot win rose 40.2 percent and table-game win jumped 59.1 percent.

The board said the 32 casinos on the Boulder Strip produced $77.4 million, up 18.6 percent, the third time in the five months so far this year there has been a double-digit gain. Slot win grew 20.7 percent and table games were up 4.2 percent.

In the balance of Clark County, which includes properties in Jean and Primm as well as the Suncoast in unincorporated Clark County, the 67 casinos reported winnings of $94.1 million, an increase of 24.3 percent -- the highest percentage gain this year. Slot machine win grew 27.3 percent and table-game win was up 7.3 percent.

In a separate research note, Morgan Stanley analyst Celeste Brown said the data showed strong growth in the locals casino market, "a good sign" for locals operators Station Casinos Inc. and Boyd Gaming Corp.

The 10 Laughlin casinos reported $51.4 million in gross win, up 7.3 percent. Slot machine winnings rose 8.8 percent but table games were off 2 percent.

The seven casinos in Mesquite reported $11.4 million in gross win, up 13.4 percent and a rebound from the previous month when revenues were off 0.4 percent. Slot win rose 13 percent to $9.7 million and table-game win was up 14.8 percent to $1.5 million.

The board said casinos in Washoe County won $88.6 percent, down 2.1 percent; South Lake Tahoe clubs reported $28 million, down 3.5 percent; Carson Valley clubs reported their 25th straight month of increased win at $10.6 million, an 11.6 percent gain; and Elko clubs had a $22 million win, up 8.5 percent.

[axb8000]

Thanks for that article. I am interested in trying to get into the casino stocks.

HET has looked rather choppy lately and I did like Cramer's rationale on PENN. I'll keep on monitoring them before I jump in.

[deepinwonder]

I didn't hear the whole show, last night, but do know Penn Gaming has two locations in the area where Hurricane Katrina hit. Harrah's has some down there, too. Check into it, before investing. On the news last night, they were saying the ones in MS got wiped out.

I got some stock in WYNN, but notice how much better MGM is doing and it costs less, too. I might switch, need to check into MGM's locations further. Wynn doesn't have any casinos in LA or MS, anyway.

[xboilermaker]

Hope you didn't switch, WYNN up among a bunch of downers today so far. Down on my PENN also. I love this new Scottrade platform, room for all the watch list categories you could want, casinos, builders, oil svc, etc, all on the "My Account" page.

[deepinwonder]

No, I didn't switch, but it sure was tempting to sell WYNN when it ran up so high, this morning. It doesn't have any casinos in MS or LA, so their credit ratings won't be affected.

[helk]

I don't really know of any casino stocks that I really like right now, but I don't like cramer's PENN pick too much. I'm not sure what he is seeing in this one. I liked The Sands Regent (SNDS) a few years ago when it was in the 3-4 range, but it is back in bearish mode right now.

[deepinwonder]

I sold WYNN after it went up a dollar from where I bought it. Between the gas lines and people displaced in the South, maybe Penn Gaming might be a better bet, after they get things cleaned up, because they are more local and people don't have to drive as far.

I also didn't like Wynn's choices of entertainment and if I went to Vegas, I would not waste time on Avenue Q, with puppets having sex and preaching about racism and homophobia. That is not my idea of a good time. YUCK! That was the final straw.

[deepinwonder]

They did a news story on Penn Gaming last night. Penn has their people working the phones around the clock to help track down and support their employees who were displaced or missing in the storm, about 2000, altogether. The last I heard, they managed to find about 1225 of them and everyone is going to continue to get pay and benefits, for the time being, which should be covered by their business interruption insurance policy. They aren't just leaving them high and dry, I thought that was good.

[xboilermaker]

When Illinois ok's the Argosy aquisition, maybe PENN will move. regardless, I got in last week and so far in limbo, dead even after extended hours.

[deepinwonder]

They just got hit, so people are probably still trying to scope out the situation. It may need the paddles until they do. What about ISLE? Cramer said that was a buy, tonight, I don't know what that company is like, though. I would like to have some kind of entertainment or restaurant stocks, they don't have to be casinos.

[optimus25]

Article that came out today regarding casino stock plays:

http://moneycentral.msn.com/content/P128321.asp

[deepinwonder]

Thanks! It took me two hours to get my tricky modem up and running this morning and I missed jumping in on MGM at the bottom. Boooooo hoooooo....

[xboilermaker]

Guess it's gonna be necessary to languish in PENN 'til merger is approved. Cramer says keep, so that's what I'll do.

[xboilermaker]

At least the deal AGI signed with BYD seems to have stopped Thursdays freefall. Waiting to see what happens today. If it would just get it's books together, even if they're bad.