Betting on Casinos May Be Profitable Wager - Cramer (WYNN) (MGM) (LVS)
Tweet
Share
E-mail
Up)
Casinos are on watch today following a largely positive mention by stock sage Jim Cramer on Tuesday.
Cramer noted that Las Vegas Sands (NYSE: LVS), MGM Resorts (NYSE: MGM), and Caesars Entertainment (Nasdaq: CZR) are doing a little battle in the desert. Sands has accused MGM and Caesars of deeply discounting rooms to draw in crowds and pay off debts. Cramer noted that Sands is up just 23 percent in 2013, while MGM and Caesars are up 48 percent and 156 percent, respectively, making investors question which company might be having the issue.
Caesars might have a pile of debt to work off, but MGM has made real progress with its balance sheet, Cramer said. MGM earns about $3 in casino and entertainment revs for each $1 a guest spends on a room. Those metrics might even help MGM turn a profit next year.
Meanwhile, Sands is more of a China story with over half its revenue coming from the region. But, Cramer also likes Sands and Macao operating peer Wynn Resorts (Nasdaq: WYNN). He thinks China is on the rebound, but Las Vegas (which will benefit Caesars and MGM) is also seeing some renewed upside.
Shares of the four names are mixed Wednesday.
Cramer noted that Las Vegas Sands (NYSE: LVS), MGM Resorts (NYSE: MGM), and Caesars Entertainment (Nasdaq: CZR) are doing a little battle in the desert. Sands has accused MGM and Caesars of deeply discounting rooms to draw in crowds and pay off debts. Cramer noted that Sands is up just 23 percent in 2013, while MGM and Caesars are up 48 percent and 156 percent, respectively, making investors question which company might be having the issue.
Caesars might have a pile of debt to work off, but MGM has made real progress with its balance sheet, Cramer said. MGM earns about $3 in casino and entertainment revs for each $1 a guest spends on a room. Those metrics might even help MGM turn a profit next year.
Meanwhile, Sands is more of a China story with over half its revenue coming from the region. But, Cramer also likes Sands and Macao operating peer Wynn Resorts (Nasdaq: WYNN). He thinks China is on the rebound, but Las Vegas (which will benefit Caesars and MGM) is also seeing some renewed upside.
Shares of the four names are mixed Wednesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sands Macao Celebrates 20th Anniversary
- Midday movers: Walmart, Chubb and Trade Desk rise; Meta, GameStop fall
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Jim CramerSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
