When one thinks of gambling "sin stocks," one ordinarily thinks about large casino stocks. But casino resorts are what they are in part due to the availability of gambling related machines and hardware. I am going to look at a few of the leading companies in that industry today.
WMS Industries - Independence at an end
We are likely approaching the last time I will be reporting on WMS Industries (WMS), the former Williams Electronics. It has agreed to be acquired by Scientific Games (SGMS) for $26 per share, plus the assumption of WMS' modest debt. The deal is scheduled to close by the end of this year. On its own, WMS is having a dismal fiscal year, which ends June 30. For this year, the company, no doubt with distracted management, earnings are likely to end at about $0.90 per share, compared with fiscal 2012's $1.31 per share. Helping drive earnings lower are additional measures the company is taking to drive up revenues, which remain well below last decade's peak. WMS' stock has flat lined the past few months at within three percent of the $26 price. There is virtually no upside, though there is downside if the deal collapses. I see no reason to get invested in WMS.
Top Casino Stocks To Watch Right Now: (XTRN)
Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.
Top Casino Stocks To Watch Right Now: MGM Resorts International(MGM)
MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Sean Williams]
The other knock against the sector is merely that it's cyclical and prone to downswings ��especially for the casino operators relying heavily on the currently stagnant U.S. market. MGM Grand (NYSE: MGM ) is an example of a casino operator that's expanded into Macau but still derives the majority of its business from the United States. Unsurprisingly, it hasn't turned an annual profit since 2007 and isn't expected to until at least 2015.
- [By Rich Smith]
On Friday, Amazon announced that its European LOVEFiLM subsidiary is teaming up with MGM (NYSE: MGM ) Television to bring the hit new History Channel television show VIKINGS to viewers in the U.K., and Germany as well. Beginning May 24, LOVEFiLM will be the only service offering streaming video of all nine episodes of Vikings' first season to viewers in the U.K. and Germany. (Season 2 is scheduled to arrive in 2014). Additionally, Amazon points out that it will be streaming the show through LOVEFiLM before Vikings even goes into broadcast in Europe.
- [By Travis Hoium]
But there's still evidence that it exists, even if authorities don't push hard for information. MGM Resorts (NYSE: MGM ) was forced to divest its New Jersey properties because of the company's relationship with Pansy Ho, whose father had ties to triads in Macau. Las Vegas Sands is under investigation by the U.S. attorney's office for possibly violating money laundering laws in Macau last year.
- [By Travis Hoium]
The steady economic recovery in the U.S. has helped MGM Resorts (NYSE: MGM ) , Las Vegas Sands (NYSE: LVS ) , and Wynn Resorts (NASDAQ: WYNN ) turn Las Vegas from a drag to a positive line on the income statement. But for each, Macau continues to be the most important.
Hot Canadian Stocks To Invest In 2014: Wynn Resorts Limited(WYNN)
Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Dan Caplinger]
Moreover, corporations assisted taxpayers in achieving the same goal by making larger-than-usual dividend payments to their shareholders. Casino giant Wynn Resorts (NASDAQ: WYNN ) , warehouse-club retailer Costco (NASDAQ: COST ) , and hundreds of other companies declared special dividends that sent billions of dollars into investors' hands, much of which they had to count as taxable income. Moreover, many other companies decided to take dividends they had planned to pay in 2013 and make payments early instead. Wal-Mart (NYSE: WMT ) paid its usual January dividend in December, while Oracle (NYSE: ORCL ) actually made three quarters' worth of dividend payments at the end of 2012.
Top Casino Stocks To Watch Right Now: Penn National Gaming Inc.(PENN)
Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.
Advisors' Opinion:- [By Roberto Pedone]
Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.
Monday's Volume: 1.11 million
Three-Month Average Volume: 824,334
Volume % Change: 73%From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.
Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.
Top Casino Stocks To Watch Right Now: Boyd Gaming Corporation(BYD)
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.
Advisors' Opinion:- [By Travis Hoium]
Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM ) and Boyd Gaming (NYSE: BYD ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.
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