MGM Mirage (MGM): Stock Oversold And Might Get More So

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.

See Also:
Las Vegas Sands (LVS), WYNN Casinos (WYNN), et al: Worst Yet To Come
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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