The top casino stock exchanges give you an indication of the performance of a particular casino. Some of these stocks are traded on stock markets, while others are traded over the counter (OTC). If you are looking for long term potential in Las Vegas, Macau, or other destinations there is potential that some of these stocks will outperform the traditional US exchanges. Here is some of the best information you can use to determine which current stocks are best.
Las Vegas Sands is the parent company of the Las Vegas Sands Corp. They have some very exciting, promising growth prospects ahead. In the last year they have invested nearly $2 billion into the business. This is a solid investment and one that could pay off handsomely as demand for their goods and services increases. They also own a large portion of the casinos in the country.
Recently the CEO of the casino chain MGM Resorts Entertainment (MGMM) made remarks about the economy that caused the stock market to take a hit. However, he assured that the company is investing aggressively to improve the company’s bottom line. He mentioned that they are investing in building up some very attractive casino projects around the world. Specifically, he talked about China, Macau, and Singapore as key markets for their company. In the second quarter, the company had net income of just under nine million dollars. This was up slightly from the second quarter but lower than the company’s revenues.
Wynn Resorts (WNY) is another company that has had some strong second quarter profits. They had revenues of approximately two and a half billion dollars and their gross margin was over forty million dollars. Both the share’s price and the balance sheet of this casino chain are very attractive, even after the recent credit crisis.
Companies like WDW and MMGR are part of what is known as the ‘top casino stock’ sector. Investors in this sector of the stock market are looking for companies that have a long term sustainable growth plan. They are also concerned with companies with strong balance sheets, because this gives them more buying power when they want to make investments for the future.
The top casino stocks on the exchanges include MMGR, WDW, and WML. The two companies together account for over forty percent of the overall market. Their earnings-per-share growth was very strong, but their revenues declined slightly. While they are still above average in earnings, their profit margin is declining. On the positive side, the stock prices have increased by about thirty percent since they first reported their earnings.
These companies are not likely to see continued earnings growth in the next five years. The first four quarters of this year showed an income growth, but the fourth quarter of this year is probably going to be difficult, especially if tax increases occur and corporations have to report their profits. If the economy does slow down substantially, then earnings growth could suffer. In the short term, however, M MGR and WDW have enough financial resources to weather the storm. In the next five years they need to start generating higher profits, if they haven’t already, if their business model is based on high dividends and low operating costs.
This kind of secure income will allow investors to purchase shares at a very low price. If the market continues to perform as well as it has been doing recently, then the top casinos could see their stock prices continue to rise for the next five years. Of course, by that time, any potential increase in dividends will have already been realized by the corporation. It is important to remember that the market will not necessarily react to news of a company’s quarterly profits negatively. There are always individuals who will buy up stocks before the company’s quarterly numbers come out. Individuals will also sell their shares once the market reacts negatively to good news.