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Improving market helps gaming stocks

Nov 4, 2008 5:07 PM

by Ray Poirier | Dr. Doom and Gloom went on vacation last week permitting the general stock market, including the major gaming companies, to recover from their recent slump.

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But for some, the improvement was short-lived.

Particularly, Wynn Resorts Ltd. (WYNN) that saw its share price shoot upward from Monday’s (Oct. 27) of $33.46 to Friday’s closing price of $60.40 per share.

Profit taking on this Monday, however, sent the price of WYNN shares down $8.81 to close at $51.59

The week was exceptional for the major companies including Las Vegas Sands Corp. (LVS). Pummeled for weeks because of the reported credit freeze that could have affected the company’s Macau and Singapore developments, LVS shares moved up from its depths of the low $4.00 level to Friday’s close of $14.19 per share. This Monday, the shares closed at $14.09.

MGM MIRAGE Inc. (MGM) also benefited from the improved mood on Wall Street moving up from less than $10 per share to $16.46 on Friday. Again, Monday saw the shares pared to $15.44.

On Monday morning, Jeff Macke, a writer for the Minyanville Internet site and a popular participant on CNBC’s "Fast Money" television show, told his followers that he bought MGM shares on Friday, looking for the share price to climb to the $20 level. However, he also protected his purchase by putting a stop at the $13 level.

Other analysts suggested the gaming machine manufacturers such as International Game Technology (IGT), Bally Technologies Inc. (BYI) and WMS Industries (WMS) could fare well should voters approve gaming legislation in Maine, Maryland, Ohio, Missouri and Colorado.