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Casino Stocks to Invest with Big Upside

Friday, August 14, 2009

Casino Stocks to Invest with Big Upside

Casino Stocks to invest with big upside.

Some of the hardest hit stocks during the current recession have been Casino stocks. The majority of people seem to have decided that they would rather eat than risk the house and farm. The main casino stocks contain a combination of Casino and hotel revenue and this list includes many household names: MGM Mirage (MGM), Las Vegas Sands (LVS), Wynn Resorts (WYNN), Penn National Gaming (PENN), and Melco Public Entertainment (MPEL).
These stocks are just the largest in the industry by market cap, but there are many others and they have all been decimated in the same way – down from their 52 weeks highs ranging from (-11% to -78%).

If you are a believer in the ‘green shoots,’ then you should really be focused on industries with the highest rebound potential such as Casino Stocks. Any of the larger names provide a bit more protection just in case the recession is not V-shaped and we experience another dip. I would suggest using at least a 3 times weekly volatility stop as predicting when a stock will jump is very tough. This way you remove the noise of the market from your investment.

On a side note, if you have ever gone to Vegas as a Canadian than you would be aware of the nasty surprise you receive when all your casino winnings are taxed to the max by the IRS. Because as a Canadian you are a non-resident of the US, you can get this money back as long as you’re willing to jump through the right hoops. There are many companies that will navigate this mess for you and get that money back. One of my friends used Casino Tax Rebate last time he went to Las Vegas.

2 comments:

Chris the Capitalist said...

Good idea! I've got call options on MGM!

jesus said...

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