US Gaming Stocks Steadying After Six-Month Price Increase
US gaming stocks are still trying to rebound from the disastrous market meltdown back in 2008. The economic recession led way to gaming stocks falling to the point that some did not survive. The stocks that made it through the recession, however, have spent the last six months increasing.
At the end of last year, analysts started predicting that by the end of 2012, the gaming industry would make a full recovery from the recession. When news of the analyst predictions started to circulate, investors became more comfortable with the idea that the stocks were stable once again, and stock prices started to rise.
The six month increase was one of the best runs over the past five years, but stocks have now again started to level off. MGM Resorts is an example of a stock that has come back from near disaster, to be profitable and a safe bet once again. MGM stock was $9.02 in December, and has risen to the current price of $13.52 since the new year. Over the past three months, the stock price for MGM has not changed more than $2 either way.
Las Vegas Sands has seen a similar graph over that time period. Currently, LVS stock is $57.91, the second highest gaming stock on the market behind Wynn Resorts. In December, LVS stock hit a low of $40.46. Sands stock has been closely tied to the companies success overseas.
During the recession, LVS CEO Sheldon Adelson spent billions of his own dollars to fund expansion in Macau and Singapore. The expansion vision into Asia has become one of the most applauded moves in the industry. Sands is running successful casino resorts in Macau and Singapore, and is now in talks with the Spanish government to bring resorts to Spain.
Wynn Resorts remained stable throughout the recession, but has actually dropped over the past year. Last summer, Wynn stock was as high as $165.65 a share. There have been peaks and valleys since that time, and the stock closed Friday at $128.99, still easily the top gaming stock in the country.
Other stock prices at the close of the trading day Friday include Melco Crown at $15.58, Boyd Gaming at $8.25, and Pinnacle Entertainment at $11.50. Penn National has expanded within the US, adding several new casinos over the past few years. Penn National stock sits right behind Sands as the number three gaming stock in the US, with a closing price of $45.58 Friday.
April 21, 2012
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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