Don't Gamble On Casino Stocks

Jeff Macke  Jul 13, 2009 12:10 pm

Don't Gamble On Casino Stocks
 
Blackjack's a safer bet than Wynn, MGM.
 

 
As far as paying and useful customers go, I'd give the Atlantis a D. There were a mix of nice people and jerks -- same as you’d find anywhere. But my money was good, and I was playing with entirely mediocre results, not to mention with a strong suspicion that the house was rigging the game. If the casino is desperate enough to openly encourage team play without at least threatening to hand out a decent beating, they’re not making money.

Bottom line: If you’re looking for a relatively nearby place to have an amazing time with or without your family, consider the Atlantis. If you’re looking to buy casino stocks, keep your chips pocketed.

More Consumer News

Since I started writing for Minyanville, I’ve had the opportunity to chat with some retail bigwigs. To a person, I was told that business crumbled a few weeks back after a brief rally. The phrases used to describe the decline can’t be repeated on a family site.

Let’s just say it’s gotten ugly in the malls, yet again. There are specialty-store stocks that have put in an enormous amount of space between current levels and the March lows. Did you happen to see consumer confidence levels so low they suggest that America has run out of both consumers and confidence? Did you see the same-store sales last week?

True Religion (TRLG) is 150% higher since March. In that same timeframe, Ralph Lauren (RL) is up over 50%. The Gap (GPS) has put on nearly 40%.

You get the idea. Doom and gloom is no longer in these stocks. They now trade with “guarded optimism.” They shouldn’t. Hedge ‘em, stop ‘em, flat-out sell 'em.

Whatever you do as you listen to non-retailers report this month, keep in mind sinking tides do hideous things to stocks trading on more than a hint of “hope.”

The idea here is take profits and leave a token position (say, 10% of your original investment) just to keep the names on your radar.
34 of 49 (69%) found this helpful
Rate this article:  (49 Votes)
Comments (18) See All Comments »
07-13-2009, 6:45 pm
1. I always learn something
2. I laugh copiously throughout (not many people in finance can do that)

respect brother,
T
Read More
07-13-2009, 9:20 pm
It really is amazing that there are so many people who read Minyanville and feel compelled to spew venom in light of what those of us who are charter members and have been here since the beginning know this community is all about. I don't know
Read More
07-14-2009, 8:35 am
Again, too many assumptions on your part. My observation does not make me a victim. I too, make my own trades. Toddo, just yesterday, raised attention to the fact that Meredith Whitney's customers knew beforehand what she advised to the mass
Read More
07-14-2009, 4:25 pm
I agree with all put forth by Mr. Lieberman. I have become to know MV as a valued tool in a war-chest that enables one to perform in a better fashion, within that same breath I can say I do not agree with some opinions offered, that is a fine aspect
Read More
07-19-2009, 8:47 pm
I was actually in Biloxi on the other Las Vegas / Atlantic City coast where I have made more money playing BJ than I have trading stocks this year - which is both embarrasing to admit but explainable in some ways b/c it's been a great year to
Read More
discuss this article and more on the mv exchange
No positions in stocks mentioned.

Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options.  Click here for a free 14 day trial to OptionSmith by Steve Smith.



The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2009 Minyanville Media, Inc. All Rights Reserved.

Ticker Talk
Popular Tickers:
F »AMZN »HIG »
Select
  •  
Talk Now
Share this Talk on your site:
Send us your feedback

Our Professors

rss article alert