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Casino Stocks Down on Luck (LVS, MGM, TRMPQ, MPEL)

Submitted by Frank Lara Jr on Thu, 09/24/2009 - 15:44.
in
Casino Stocks (LVS, MGM)

After some recent impressive gains, a few big name casino stocks are dropping fast today, and the magic number is -8%.  Such is the case for the Las Vegas Sands (NYSE:LVS), MGM MIRAGE (NYSE:MGM), Melco Crown Entertainment (NASDAQ:MPEL), and Trump Entertainment Resorts (OTC:TRMPQ) all down 8% in today's session.

In the last month MGM shares have leaped 40%, the Las Vegas Sands are up 20%, Melco Crown is up 21% and Trump Entertainment Resorts has become a penny stock. 

Casino Stocks (MGM, LVS)MGM AND LVS SHORT TRADE
TradingMarkets.com pointed out yesterday that the MGM MIRAGE had unusually high daily short volume to the tune of 12% and Las Vegas Sands of 35%.  After such massive gains in the MGM and Las Vegas Sands it was only a matter of time before the shorts exposed and setup shop to cash in on a possible decline.  Wynn Resorts (WYNN) made headlines over the weekend when the Las Vegas-based company said it has increased the size of the initial public offering in Hong Kong for its Macau unit by 25%, looking to raise up to $1.6 billion, according to Reuters. Wynn’s rival, Las Vegas Sands (LVS), is also busy, hoping to raise $1 billion to $2 billion through the sale of a stake in its Macau operations, possibly at the end of November.

Investors have gone all-in with the gambling stocks: Over the last six months, MGM Mirage (MGM) has skyrocketed 300%, and Las Vegas Sands has surged 468%.

TRUMP ENTERTAINMENT IN TROUBLE
Donald Trump, along with the company's lender, Beal Bank, has offered to sponsor the Atlantic City company's bankruptcy exit in a deal that would cut its debt by about $1 billion. That plan, which has the backing of the casino company itself, is being challenged by bondholders who have their own vision for the company.

Trump and Beal have offered to pump $100 million of fresh capital into the company. Their plan will also push back payment on $486 million in first-lien debt to 2020 from 2012, giving the company some breathing room as it attempts to revive its struggling casinos.

Data from ShortSqueeze.com


Mgm Mirage
$
12.18

MGM
-0.85
Short Interest (Shares Short)
31,737,600
Days To Cover (Short Interest Ratio)
1.6
Short Percent of Float
11.43 %
Short Interest - Prior
27,434,400
Short % Increase / Decrease
15.69 %
Short Squeeze Ranking™
-10
% From 52-Wk High ($
31.00 )
-154.52 %
% From 52-Wk Low ($
1.81 )
85.14 %
% From 200-Day MA ($
7.22 )
40.72 %
% From 50-Day MA ($
9.72 )
20.20 %
Price % Change (52-Week)
-56.20 %

 


Las Vegas Sands Corp
$
17.47

LVS
-1.27
Short Interest (Shares Short)
66,255,900
Days To Cover (Short Interest Ratio)
2.1
Short Percent of Float
20.26 %
Short Interest - Prior
65,655,100
Short % Increase / Decrease
0.92 %
Short Squeeze Ranking™
-19
% From 52-Wk High ($
39.88 )
-128.28 %
% From 52-Wk Low ($
1.38 )
92.10 %
% From 200-Day MA ($
9.22 )
47.22 %
% From 50-Day MA ($
14.84 )
15.05 %
Price % Change (52-Week)
-43.60 %

 

 

Disclaimer: No position in any of the securities mentioned in this publication.

 


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