Betting on Casino Stocks

Casino gaming may be experiencing major growth in the state of Massachusetts. a tentative agreement to expand gambling was reached by the state's Senate, House and Governor, which would allow three stand-alone casinos. Slot machine manufacturers should benefit, along with major casino companies that may participate, such as Las Vegas Sands (LVS).

The company trades at 18 times forward earnings, had quarterly revenue growth of 47%, and an outrageous 882% increase in quarterly earnings year over year. Of course, the percentage increase is based on very low earnings for last year. Although the company carries $10 billion in debt, it does have $3.5 billion in cash. Business has been booming for Las Vegas Sands in Macau.

Other casino stocks ideas can be found on the free list at WallStreetNewsNetwork.com, with over 20 listings.

WMS Industries Inc. (WMS) is a way to play the supplier industry. It develops, makes, and markets gaming machines and video lottery terminals, including slot machines and video poker gaming machines. The stock sports a forward price to earnings ratio of 10.2. Jefferies initiated coverage on the stock last year and gives it a Buy rating. The debt free company has $90 million in cash.

Wynn Resorts Ltd. (WYNN) is one of the major casino operators, with two casinos in Las Vegas and one in Macau. The stock carries a forward PE ratio of 22. It even sports a yield of 1.5%.

For a free list of casino and gaming related stocks that can be downloaded, updated, and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Are Casino Stocks Worth a Bet?

Maryland now has its first casino, developed by Penn National Gaming Inc. (PENN). Pinnacle Entertainment Inc. (PNK) is opening a new casino in Baton Rouge, Louisiana. Genting New York is developing a casino at Aqueduct. Thunder Valley Casino Resort in California is offering the first casino helicopter service in the state. The recent opening of SugarHouse Casino makes Philadelphia the largest U.S. city with casino gambling.

The gaming industry is hot, and it doesn't seem to matter whether the casino companies are making money or losing money. There are actually a couple ways to play this game: the gaming machine providers and the casinos themselves. WallStreetNewsNetwork.com has turned up over 20 of these casino stocks.

WMS Industries Inc. (WMS) is a way to play the supplier industry. It develops, makes, and markets gaming machines and video lottery terminals, including slot machines and video poker gaming machines. The stock sports a forward price to earnings ratio of 14.8, and carries a very favorable price earnings growth ratio of 0.60. Jefferies just initiated coverage with a Buy rating. The debt free company has $166 million in cash. Earnings for the latest quarter were up 18% and the next earnings announcement is scheduled for October 25.

Wynn Resorts Ltd. (WYNN) is one of the major casino operators, with two casinos in Las Vegas and one in Macau. The stock carries a forward PE ratio of 39 and a PEG ratio of 1.91. It even pays a yield of 1.1%. Earnings for the latest quarter were up over 105%. The next upcoming earnings announcement is October 27.

For a free list of casino and casino related stocks that can be downloaded and sorted, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

Are Casino Stocks Worth a Bet?

Last week, when I was in Las Vegas to give a couple of speeches, I noticed how packed the city was. I thought there was a recession on, but the economic downturn seems to be over in Vegas.

According to the Las Vegas Convention and Visitors Authority, during the first three months of the year, visitors to the city were up by 12%. Hotel occupancy went from 71.1% to 82.4%, and there was an amazing 48% increase in the number of conventions.

So maybe, just maybe, there is a turnaround play in the casino stocks. WallStreetNewsNetwork.com has come up with a list of all the major casino companies, along with their financials. And unfortunately, the financials for many of these stocks don't look good.

For example, Wynn Resorts (WYNN) has a very high trailing price to earnings ratio of 121 and forward PE of 47. But on the positive site, latest revenues were up over 22% and the company pays a yield of 1.2%. Wynn has Wynn Las Vegas casino resort in Las Vegas, and the and Wynn Macau casino resort located in Macau.

The Las Vegas Sands (LVS) which has casinos in Las Vegas, Macau, Singapore, and Pennsylvania, has a forward PE of 32 and a favorable price earnings to growth ratio of 0.59. Revenues were up 23.7% for the latest quarter. The company doesn't pay a dividend.

Another way to bet on the casino industry is through the manufacturers of the slot machines and the other electronic gaming machines, such as WMS Industries Inc. (WMS). The Illinois company, which has been around since 1946, has a trailing PE ratio of 26, a forward PE of 21, and a PEG ratio of 1.11. There is no dividend, but earnings were up 35.2% for the latest quarter on a revenue increase of 9.2%.

For a list of all the top casino stocks, including some that pay dividends of 1.2% and greater, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com