Casino Stocks Jump For No Apparent Reason
Despite a mixed market hit with more bad news from the automobile industry, casino gaming stocks saw a rise significantly above that of the Standard and Poor's 500. In the two days of trading so far in 2009, casino gambling stocks have risen an average of almost ten percent.
Leading the way is Las Vegas Sands, which opened the year at about $6.00 a share, but has jumped to $8.48 in two days, an increase of over forty percent. Wynn Resorts and Boyd Gaming were among the other industry leaders.
Gaming suppliers did not enjoy the riding the same wave as gambling operators, as Bally Technologies, Shuffle Master, and Scientific Games all suffered slight losses for the day. But volume was concentrated on the big casino companies, and Las Vegas Sands, MGM Mirage, and Wynn Resorts were all in demand.
Investors and analysts appear to believe that the casino operators have survived the scares that liquidity problems and overextending expansion caused them in the last year.
While hard economic times aren't over, massive new projects have been put on back shelves, and cash to meet credit covenants has been obtained, whether through a personal loan like Sheldon Adelson gave his LVS, or through sale of assets like MGM Mirage selling off the Treasure Island Casino.
Investment analysts warn that there may be a drop in the next day or so as day traders take their profits, but prospects for investors in gaming and casino issues look rosier than in a long time.
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