January turned out to be a difficult month for investors, but not so much for gaming companies, especially those with relationships to Macau.
In fact, companies such as Wynn Resorts Ltd. (WYNN), Las Vegas Sands Corp. (LVS), MGM Resorts International (MGM) and Melco Crown Entertainment Ltd. (MPEL), all saw share prices reach 52-week highs.
So did other gaming companies such as Caesars Entertainment Corp. (CZR) Boyd Gaming Corp., (BYD) and Bally Technologies Inc. (BYI), because of the growing interest among some states to implement Internet gaming.
But Monday, the bottom fell out for most gaming stocks after traders pummeled Dow and NASDAQ shares. With the Dow Index falling more than 326 points or 2.08 percent it was not unexpected to see the larger gaming companies fall as much as five percent or more.
Many analysts suggested the drop created a favorable atmosphere for “selective” stock picking while others, fearful the end had not arrived, preferred to sit back and wait.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].