gambling stocks

[OrangeCat]

STN Station Casinos
SHFL Shuffle Master
MGG MGM Mirage
HET Harrahs Entertainment

All you have to do is look at the room rates the hotels are getting in LV to see why the hotels are making money. It used to be that the rooms were cheap in order to get folks to come and gamble. Now the rooms are 200-300 a night and people are gambling more than ever. SHFL makes the shuffle machines you see on BJ and poker tables. Harrahs owns the WSOP, the Rio and a bunch of casinos all over the country.

go to finance.yahoo.com if you want to read more.

[Your Mom]

The one that has done the best of late is Ameristar Casinos. ASCA is the symbol. Has gone from 29 to over 50 since Sept.

[duma]

WYNN has nearly trippled in price over the last year and a half. but i would say that all of that was based on pure speculation. we will really see how it does in a months time when the casino opens its doors.

edit: he (Steve Wynn) is also building a new casino adjacent to Wynn called Encore due to open in '08

[laserboy]

GigaMedia (GIGM) is an interesting one.

They are a Taiwanese holding company that recently purchased Grand Virtual with the intent of marketing online casinos to the under served markets of China, Taiwan, and Hong Kong. (NEWSFLASH: Chinese like to gamble). Grand Virtual provides the back end software and services to over 2000 online casinos in over 190 countries. Like the upcoming WPTE site, they do not accept action from the US.

The company has a market cap of about $70 million. But they have over $40 million in cash and investments on their balance sheet, no debt, and currently sells for below liquidation value.

They do have their share of problems. Their other lines of business are in the cutthroat B&M music stores and broadband internet access, and are barely profitable if at all.

The new management, however, has shown a commitment to cutting costs and restructuring the business. After years of unprofitability, the company now has two consecutive profitable quarters in a a row, largely on the strength of their recently acquired online casino business.

Downside risk is limited by its cash and physical assets... a Ben Graham type stock.

Thoughts?

[lowroller]

CRYP - Cryptologic

Leader in poker/casino software! Just added to the S&P Comp. Index.

[tek]

[ QUOTE ]
(NEWSFLASH: Chinese like to gamble).

They do have their share of problems. Their other lines of business are in the cutthroat B&M music stores and broadband internet access, and are barely profitable if at all.

[/ QUOTE ]

My thoughts? Orientals like to gamble, but mostly in person I would think.

And the unprofitable businesses they operate will drag them down.

Is this a pink sheet company?

[tek]

Casino stocks have done well the past few years. Will they keep going up? Maybe. But remember, buy low-sell high.

If I was looking at gambling stocks, I might buy some ECP. It's Canterbury Park right here in Minesota. They seem to be finally getting their racino (slots, more table games, hotel) in addition to horses, poker, and a few table games.

However, a big casino might be approved for the Mall of America.

See? Buying gambling stocks is gambling. And the ones in Vegas and AC will not go up forever.

The best way to place the stock game is to go where nobody is yet. If you can't figue out where that is, buy mutual funds.