MGM Mirage Stock Biggest Decline of Major Casino Operators
Casino stocks slid along wit the rest of the market today as the Dow Jones index dropped by over 700 points by early afternoon. The market had declined early at unease with the details of a major government bailout of the banking system, and fell even harder with the Congressional rejection of the bill.
Las Vegas Sands fell 8.5 percent, to $34.91, a drop of $3.26 per share.
MGM Mirage declined $3.38, to a selling price of $26.63, over 11 percent off in a single day.
Wynn Resorts fell only $1.49, to $83.48.
MGM is seen by analysts to be the most vulnerable of the casino companies to changes in the credit markets, due to the ongoing cost of the CityCenter project on the Las Vegas Strip. Rumors of unhappiness by their Dubai World partner also affected outlook.
Meanwhile, Wynn is generally regarded as well-capitalized, and thus more able to withstand economic turmoil.
Macau casinos had been viewed as lifejacket businesses for the casino operators, but a slowdown in growth mandated by the Chinese government emptied much of the air from that hope.
