Casino Stocks Fall To Record Lows On Thursday, MGM In Trouble

The city of Las Vegas has experienced the upside of people in America and around the world having excess money. Now they are experiencing the downside to these same people being broke.

Casino companies experienced another dark day on the stock market on Thursday with several prominent companies dropping to depths they have never seen before.

MGM Mirage might be in the biggest trouble of all of the companies, according to analysts. The reason being that MGM has a majority of their locations in Las Vegas, which is a city that is feeling heavy effects from the current economy.

"During a period of increasing supply and decreasing demand", MGM and their eighty percent reliance on Las Vegas and the surrounding area, could be hurt the most of any casino company, according to Nicholas A. Danna IV of Sterne Agee & Leach Inc..

MGM had been planning to open their CityCenter project, which is costing $9.2 billion, next year. Those plans might have to be put on hold by the company, however, because the opening would hurt the other properties that MGM has in Las Vegas.

While MGM's stock is still above the $9.75 low that it was at earlier this year, shares still slid 19.1 percent, to $10.07 on Thursday.

Las Vegas Sands Corp. also fell almost thirty percent on Thursday. They are down to $8.40 a share. Wynn, still the most powerful of the group, fell to $40.18, down $6.20, or 13.4 percent.

October 24, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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