Casino stocks have been getting rocked and some believe the worst is yet to come. Blame the economy, $145 oil, and airlines. MGM Mirage (MGM) is certainly no exception: it’s down 70% from its 52-week high. Gabelli now cuts estimates on MGM and pees on the stock:
- expected demand weakness in Las Vegas
- lower room rates
- negative operating leverage
However, Gabelli is willing to wait out the economic downturn and gives the old “oversold” story. The firm is likes the fact that MGM is still a “world-class” gaming owner/operator and maintains a BUY. That’s nice. And in the long-run, we’re all dead.
Las Vegas Sands (LVS), WYNN Casinos (WYNN), et al: Worst Yet To Come (LVS, WYNN, MGM)
Gambling Fears Overblown: Las Vegas Sands (LVS), MGM (MGM), and Wynn Resorts (WYNN) Could Double
Las Vegas Sands (LVS): Not The Casino You Want (LVS, ASCA)
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