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Even Without Dubai Fear, MGM Mirage Is a Gamble

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Company is expected to lose money in the near-term.

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Anyone else out there sick of turkey yet? We finally finished our leftovers yesterday.

Asian stocks rebounded sharply overnight. The Hang Seng and the Nikkei ended up 3.25% and 2.91%, respectively. However, European stocks were in negative territory early this morning. And here in the US, we're currently trading higher.

Here's what I'm focused on this fine Monday morning:

MGM Mirage
(MGM):
Double down on Dubai?

I must admit I was concerned that the stock could take a bit of a beating this week as the company and Dubai World are working together on the CityCenter project in Las Vegas.

However, the good news reported by The Associated Press is that a company representative said, "CityCenter is fully funded, on schedule and ready to begin welcoming guests starting next week."

Some thoughts:

1. The shares could rebound in today's session, particularly as some of the Dubai fears seem to fading. But that doesn't mean I'll be sliding my chips to the center of the poker table.

2. I'm still not waving jazz hands over Vegas, and question how many patrons and tourists those casinos will be able to get into their facilities over the next several quarters as people remain wary of dropping their hard-earned coin into slot machines.

3. Plus -- and this is really the one that does it for me -- the company is still expected to lose a bunch of flash on the near-term horizon.

I'm tossing my chips on the pass line, even though Dubai looks like it might not be a major issue in this case.

For my previous take on MGM Mirage, click here.

Best Buy (BBY):
Is it truly?

I read an interesting article this past weekend in the Investor's Business Daily that discussed the intense competition these days in electronics. It mentioned big names, including Amazon (AMZN), Target (TGT), and of course, Walmart (WMT). The space is becoming a real slug-fest.

My take:

1. While I realize Best Buy isn't the only place to pick up electronics, I think its stores remain a primary destination for many bargain shoppers and serious electronics purchasers. It has a huge selection, low prices, and is willing and able to advertise, as is evidenced by the circulars that keep arriving in my mailbox. In addition, it's benefited from the absence of Circuit City.

2. While the other aforementioned players shouldn't be forgotten, in my opinion, the company continues to be the "best buy" in this space.
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No positions in stocks mentioned.

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