Cramer Reverses Self on Casino Stocks
This week, stock forecaster Jim Cramer finally relented a bit in his negative position on casino and gaming stocks. After having bemoaned the state of the gambling industry in general, and Las Vegas operators in particular, the CNBC financial star touted both Las Vegas Sands and Wynn Resorts on his popular show, "Mad Money."
As recently reported on Online Casino Advisory, both companies are applying to issue initial public offerings on the Hong Kong market. Each company has examined ways to use assets held in the gaming enclave of Macau into increased liquidity.
Sands, in particular, has looked beyond the IPO to also consider selling minority ownership in Macau properties to private equity firms, and discussed partnership in Far East assets, including its upcoming Singapore casino.
Cramer said on his show that, while he still has reservations about any quick Las Vegas turnaround in earnings or revenue, Macau may be much quicker to bounce back.
The investment expert advised listeners that Wynn goes into any IPO in much better shape than Las Vegas Sands. He noted that Wynn has a superior position, with cash already on hand.
