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Is It Time for a Trip to the Casino for Stocks?

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http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/

Is It Time for a Trip to the Casino for Stocks?

We often remind our readers that investing in and trading stocks is not like gambling no matter how addictive the profits might be. So you should not think of stock options trading like a trip to the casino. However, casino stocks are a different matter. Yahoo Finance suggests 3 casino stocks to buy.

Perhaps it’s because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it’s because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it’s clear that gambling stocks are always among the most popular on Wall Street.

Luckily for investors, now is also a great time to be buying gambling stocks, as continued domestic strength, a great recovery in Macau, and overall international interest in gaming have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall gaming industry has gained more than 28.8% year-to-date, outpacing the S&P 500’s respectable 15.6% gain.

There three picks are Wynn Resort (WYNN), Monarch Casino & Resort (MCRI) and Penn National Gaming (PENN). Casinos are potential cash cows, providing that they are well located and well managed. But, is there a downside to owning casino stocks?

CNBC asks are casinos a solid bet.

Both Las Vegas Sands and Wynn Resorts have big stakes in Macau, a special administrative region of China known for its vibrant gambling industry. In fact, the story behind Las Vegas Sands’ surge in spite of the earnings miss hinges on the fact that June was the first month since September 2014 when mass gaming volume and revenue actually increased year over year.

Las Vegas Sands CEO Sheldon Adelson himself emphasized the importance of his company’s Macau names in the Q2 earnings call on Monday, saying that “when it comes to emerging market opportunities, we are unique in the absolute scale of our cash flow as well as our dominant share of the industry’s cash flow.”

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Is It Time for a Trip to the Casino for Stocks?

  1. 1. IS IT TIME FOR A TRIP TO THE CASINO FOR STOCKS? By www.Options-Trading-Education.com
  2. 2. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ We often remind our readers that investing in and trading stocks is not like gambling no matter how addictive the profits might be.
  3. 3. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ So you should not think of stock options trading like a trip to the casino.
  4. 4. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com Get 12 Free Japanese Candlestick Videos Includes training for all 12 major candlestick signals. http://www.candlestickforums.com
  5. 5. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ However, casino stocks are a different matter.
  6. 6. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Yahoo Finance suggests 3 casino stocks to buy.
  7. 7. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Perhaps it’s because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it’s because Las Vegas conjures images of the world’s most flashy brands and businessmen.
  8. 8. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Regardless of the reason, it’s clear that gambling stocks are always among the most popular on Wall Street.
  9. 9. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Luckily for investors, now is also a great time to be buying gambling stocks, as continued domestic strength, a great recovery in Macau, and overall international interest in gaming have led to rising share prices.
  10. 10. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ In fact, according to our Zacks Industry Rank data, the overall gaming industry has gained more than 28.8% year-to-date, outpacing the S&P 500’s respectable 15.6% gain.
  11. 11. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ There three picks are Wynn Resort (WYNN), Monarch Casino & Resort (MCRI) and Penn National Gaming (PENN).
  12. 12. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Casinos are potential cash cows, providing that they are well located and well managed.
  13. 13. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ But, is there a downside to owning casino stocks?
  14. 14. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ CNBC asks are casinos a solid bet.
  15. 15. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Both Las Vegas Sands and Wynn Resorts have big stakes in Macau, a special administrative region of China known for its vibrant gambling industry.
  16. 16. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ In fact, the story behind Las Vegas Sands’ surge in spite of the earnings miss hinges on the fact that June was the first month since September 2014 when mass gaming volume and revenue actually increased year over year.
  17. 17. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Las Vegas Sands CEO Sheldon Adelson himself emphasized the importance of his company’s Macau names in the Q2 earnings call on Monday
  18. 18. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ saying that “when it comes to emerging market opportunities, we are unique in the absolute scale of our cash flow as well as our dominant share of the industry’s cash flow.”
  19. 19. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ The Communist Party still rules China and its special administrative region, Macau.
  20. 20. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Anyone with a lot of business in China is subject to the whims of the Party and a country where the rule of law really means the rule of the elite that has run things since the days of the long march.
  21. 21. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Will Millennials Want to Bet?
  22. 22. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ This has to do with demographics. Investopedia looks at the impact of millennials on the gaming industry.
  23. 23. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ Millennials, consisting of those born between 1980 and the mid-2000s, constitute the nation’s largest generation at one-third of the U.S. population.
  24. 24. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ They are the first generation to have grown up with the internet during its crucial, formative years
  25. 25. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ are the most diverse and the most educated generation, and while many reached adulthood during a difficult economic era, Millennials will be responsible for the future direction of the economy.
  26. 26. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ They also, apparently, don’t gamble much.
  27. 27. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ It is not a moral issue for Millennials, but a social one.
  28. 28. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ As Millennials look for meaningful experiences that promote greater social interaction and cohesion, traditional casino spaces and games, especially slot machines, offend these millennial social sensibilities.
  29. 29. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ While games like poker and blackjack involve a slightly greater degree of sociality and skill, in the minds of most Millennials, the primary thing casino’s offer – their physical space – is just downright unattractive.
  30. 30. http://www.options-trading-education.com/24680/is-it-time-for-a-trip-to-the-casino-for-stocks/ This group constitutes a third of the US population and unless casinos can entice these folks to come and bet their business will fade over the years.

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