MtSmalls
01-08-2003, 06:23 PM
There are relatively few readers of this forum, but I would like to hear from everyone who has an opinion on the beating that the casino stocks took today. Both MGM and Mandalay reported that they would miss their earning by half: MGM 24 to 27 cents vs forecast 43 cents, Mandalay around 10 cents vs 22 cents.
Some numbers:
MGM Grand: down 11.4%
Mandalay: down 12.3%
Harrahs: -3.35%
Park Place: -8.8%
Obviously the Vegas central casinos were hit harder than others, but this just screams out 'overcorrection'. MGM's number is actually going to be 30% higher than earnings a year ago (4Q after 9/11). The nature of the business is that the casinos carry huge debt levels, making the cost of running the casino high, but the ROE even higher.
Does anyone else feel that this is a great time to get some exposure to this sector? Does anyone think this is a lousy time to be exposed to gaming??
Some numbers:
MGM Grand: down 11.4%
Mandalay: down 12.3%
Harrahs: -3.35%
Park Place: -8.8%
Obviously the Vegas central casinos were hit harder than others, but this just screams out 'overcorrection'. MGM's number is actually going to be 30% higher than earnings a year ago (4Q after 9/11). The nature of the business is that the casinos carry huge debt levels, making the cost of running the casino high, but the ROE even higher.
Does anyone else feel that this is a great time to get some exposure to this sector? Does anyone think this is a lousy time to be exposed to gaming??