Short Covering / International Growth Move Gaming Stocks Higher (LVS) (MGM) (WYNN)
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Market Vector Gaming EFT (NYSE: BJK), which invests in foreign and US gaming stocks, is up 19% YTD. Part of the move has been attributed to short covering, but international growth in the industry has blown away expectation and it has been cited as the biggest factor moving stocks in this sector.
A potential EUR 18 billion 'Eurovegas' project has investors excited and if the US economy continues to improve, the inevitable pickup in the US market will also be supportive.
Wynn (NASDAQ: WYNN), Las Vegas Sands (NYSE: LVS) and MGM Resorts (NYSE : MGM) are the most popular US stocks in this sector and have seen shorts run for cover as their stocks have climbed higher.
Shorts aggressively covered their positions in Las Vegas Sands Corp in October 2010 as the stock doubled. This brought the stock on loan from 9% of the total shares to virtually nothing, according to Dataexplorers. Short interest has remained negligible since. Dataexplorer shows that 'lendable' shares from institutions has moved down from 88M to 80M since the end of February while the stock on loan has moved from 1M at the end of March to 5M.
MGM Resorts showed similar action, with shorts covering from the high of 14% of the total shares back in October 2010 to less than 1% today, Dataexplorers showed.
Wynn Resorts also saw its short interest fall from 6% at the end of November to 1% today, Dataexplorers said. This even as the company has had major issue with a founder, leading to a forced buyout of his stock by the board. Even as short interest collapsed, institutional investors who lend have cut their stakes by almost a fifth to 23% of the company.
Conversely, Wynn Macau Ltd saw its short interest double at the beginning of Q4 2011 which peaked at 3%.
Get Alerted Instantly When News Breaks on WYNN, LVS, MGM and Other Stocks with EasyStockAlerts.com
A potential EUR 18 billion 'Eurovegas' project has investors excited and if the US economy continues to improve, the inevitable pickup in the US market will also be supportive.
Wynn (NASDAQ: WYNN), Las Vegas Sands (NYSE: LVS) and MGM Resorts (NYSE : MGM) are the most popular US stocks in this sector and have seen shorts run for cover as their stocks have climbed higher.
Shorts aggressively covered their positions in Las Vegas Sands Corp in October 2010 as the stock doubled. This brought the stock on loan from 9% of the total shares to virtually nothing, according to Dataexplorers. Short interest has remained negligible since. Dataexplorer shows that 'lendable' shares from institutions has moved down from 88M to 80M since the end of February while the stock on loan has moved from 1M at the end of March to 5M.
MGM Resorts showed similar action, with shorts covering from the high of 14% of the total shares back in October 2010 to less than 1% today, Dataexplorers showed.
Wynn Resorts also saw its short interest fall from 6% at the end of November to 1% today, Dataexplorers said. This even as the company has had major issue with a founder, leading to a forced buyout of his stock by the board. Even as short interest collapsed, institutional investors who lend have cut their stakes by almost a fifth to 23% of the company.
Conversely, Wynn Macau Ltd saw its short interest double at the beginning of Q4 2011 which peaked at 3%.
Get Alerted Instantly When News Breaks on WYNN, LVS, MGM and Other Stocks with EasyStockAlerts.com
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