Casino Stocks Volatile on Credit Concerns, Possible Additional Financing at Wynn (MGM, WYNN, LVS, more)

Casino and gaming stocks are extremely volatile today on the back of several news items.

MGM MIRAGE's (NYSE: MGM) stock is down 19% to $2.84, shares of Wynn Resorts (Nasdaq: WYNN) are down 14% to $18.04, shares of Las Vegas Sands are down 3% to $2.21, Penn National Gaming (Nasdaq: PENN) is down 5.5% to $18.04, Melco Crown Entertainment (Nasdaq: MPEL) is down 6.7% to $2.64, and Isle of Capri Casinos (Nasdaq: ISLE), one of the only stocks in the sector that is trading higher, is up 16% ahead of its earnings results, which are expected out tomorrow.

Here are some pieces of news which may be creating the momentous moves in these names:

• late Friday, S&P, Moody's, and Fitch all downgraded MGM MIRAGE's credit ratings, citing liquidity and debt concerns.
  
• this morning, Wynn released its Form 10-K. In the filing, Wynn commented on its capital position, saying, "We believe that cash flow from operations and our existing cash balances will be adequate to satisfy our anticipated uses of capital during 2009. However, due to the negative business trends discussed
  herein, our Las Vegas and Wynn Macau cash flows from operations may continue to significantly decrease which may require additional financing. We cannot provide assurance that future borrowings will be available."
  
• MGM has issued a statement warning of a scam which uses the company's logo fraudulently.

You May Also Be Interested In

• Buy this stock to gain "growing AI/HPC exposure": Barclays
• Klarna (KLAR) Reiterated at Market Perform by Citizens Amid Volume Headwinds
• Lowe's (LOW) PT Lowered to $275 at Guggenheim