- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Casino stocks
Posted on 5/6/20 at 10:00 pm
Posted on 5/6/20 at 10:00 pm
MGM, Boyd Gaming, etc. Seem to be trading a discount. Thoughts?
13
Posted on 5/6/20 at 10:01 pm to Transplant Tigah
Penn
Posted on 5/6/20 at 10:11 pm to Transplant Tigah
They won’t recover for a while
Posted on 5/6/20 at 10:13 pm to Transplant Tigah
Great buy, if you're patient. Problem is, there will be LBOs, and it's hard to pick a winner.
Posted on 5/6/20 at 10:15 pm to Transplant Tigah
Great buy, if you're patient. Problem is, there will be LBOs, and it's hard to pick a winner.
Posted on 5/6/20 at 11:40 pm to Transplant Tigah
I started a small position in MGM today. I’m hoping it trades down a few bucks and I’ll buy on the way down. I feel good about MGM in the long run.
Posted on 5/7/20 at 1:07 am to Transplant Tigah
I typically don’t play the market because it feels like gambling, but as much as I have gambled on those properties, I probably should have built up a decent portfolio of stocks in gaming companies instead. Knowing how those joints operate.
Heck did anyone bite on Tillman’s double digit interest rates on bonds for his Golden Nugget properties?
You have companies that are operating regulated monopolies for the government in states like Louisiana. There is a finite number of gaming establishments in those states. While in other states, there may not be a statutory limit, but the market and regulators dictate the volume of gaming establishments.
With that being said, typically if you have license it is essentially a license to print money. Now the trouble in Mississippi and Louisiana is the economy. The loss of travelers from tourism dollars are going to mean that fewer travelers will travel to these establishments which means the casinos will need to be more dependent on their local gamblers. Louisiana and Mississippi also face a double whammy with the loss of high earning oil and gas jobs who would be more likely to gamble at these establishments. That too would reduce their local gambler pool.
Also, factoring in some establishments may face some changes in their layouts and gaming floor may impact their cash flow.
I would foresee another wave of consolidation in this sector but the operator market has already been whittled down to so few players, it wouldn’t make sense for any more consolidation.
I would wait until stocks hit rock bottom and then buy.
Heck did anyone bite on Tillman’s double digit interest rates on bonds for his Golden Nugget properties?
You have companies that are operating regulated monopolies for the government in states like Louisiana. There is a finite number of gaming establishments in those states. While in other states, there may not be a statutory limit, but the market and regulators dictate the volume of gaming establishments.
With that being said, typically if you have license it is essentially a license to print money. Now the trouble in Mississippi and Louisiana is the economy. The loss of travelers from tourism dollars are going to mean that fewer travelers will travel to these establishments which means the casinos will need to be more dependent on their local gamblers. Louisiana and Mississippi also face a double whammy with the loss of high earning oil and gas jobs who would be more likely to gamble at these establishments. That too would reduce their local gambler pool.
Also, factoring in some establishments may face some changes in their layouts and gaming floor may impact their cash flow.
I would foresee another wave of consolidation in this sector but the operator market has already been whittled down to so few players, it wouldn’t make sense for any more consolidation.
I would wait until stocks hit rock bottom and then buy.
This post was edited on 5/7/20 at 2:17 am
Posted on 5/7/20 at 6:25 am to Transplant Tigah
Investing in casino stocks is basically gambling.
Posted on 5/7/20 at 6:36 am to Tarps99
quote:
I would wait until stocks hit rock bottom then buy.
Heckuva strategy.
Posted on 5/7/20 at 7:21 am to iknowmorethanyou
quote:
Heckuva strategy.
We are maybe just a few weeks late.
Looked at a chart for Boyd Gaming.
Traded at 35 dollars a share near its 52 week high preCovid.
Crashed to about 6.50 dollars a share during the early shut down and stock market crash, Mid-March.
It now recovered and stable at about 15.50.
Similar story at Penn National.
Just missed the bottom at 4 dollars a share during the crash MidMarch.
Posted on 5/7/20 at 7:57 am to PotatoChip
Same. I like MGM long. That’s not to say it may not drop further in the next 4-6 months. But on a 10+ year horizon, buying at today’s prices seems like a solid investment.
Posted on 5/7/20 at 8:46 am to Transplant Tigah
Interested in LVS
Posted on 5/7/20 at 8:50 am to Transplant Tigah
Casinos are some of the most leveraged companies in the world.
In good economies they do quite well but in bad economies they can barely stay afloat.
It all depends on how you think the overall economy is going to do in your timeframe.
In good economies they do quite well but in bad economies they can barely stay afloat.
It all depends on how you think the overall economy is going to do in your timeframe.
Posted on 5/7/20 at 9:10 am to Hussss
quote:
Casinos are some of the most leveraged companies in the world. In good economies they do quite well but in bad economies they can barely stay afloat. It all depends on how you think the overall economy is going to do in your timeframe.
So in other words you are taking a gamble either way.
Posted on 5/7/20 at 2:55 pm to PotatoChip
I was looking at MGM as well but man the stock performance has not been good when you look at the 10 year chart
Posted on 5/7/20 at 2:58 pm to Lsutiger2424
quote:
I was looking at MGM as well but man the stock performance has not been good when you look at the 10 year chart
MGM has been a fun one to trade short term.
Posted on 5/7/20 at 8:31 pm to Transplant Tigah
ERI ftw
Posted on 5/7/20 at 8:36 pm to Paul Allen
quote:
Penn
Too late to get in on that.
Posted on 5/7/20 at 11:52 pm to Transplant Tigah
DKNG ftw
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News