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Are Casino Stocks A Gamble Right Now?
By Investment U on September 17, 2009 | More Posts By Investment U | Author's Website
Some of the fastest moving companies over the past week have been casino stocks. Las Vegas Sands (NYSE:LVS) and MGM Mirage (NYSE:MGM) have climbed up over 80% and 50% respectively.
And that includes yesterday’s 7% drop. This morning both stocks started clawing back that loss.
The real question is whether this can be sustained? Are they more of a gamble now that they’ve moved up so much? Jim Cramer doesn’t think so, in fact, he just increased his price targets for the stocks and their casino counterpart Wynn Resorts (NASDAQ:WYNN).
The momentum behind the casino stocks doesn’t stop there. Options activity has been distinctively bullish, and the financial positions have been improving.
It cannot be lost on investors that these companies are still almost 80% below last years highs. A retracement to even half that level would still be another 300% top 500% gain from here.
That’s an appetizing prospect for investors who have seen casinos climb over 400% since the March bottoms.
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