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Casino Stocks On Sale...

Discussion in 'Casino Industry & Development' started by Dean Martin, Mar 5, 2020.

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  1. PressThe5n9

    PressThe5n9 Dice, Dice, and more Dice

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    They are starting to look like a bargain, but I’m sure there’s going to be more uncertainty in the sector and wonder how long before all casinos are affected and asked to close down. Until then, if they are one of the lone operators still active in Vegas - it may help them if the players are still around - to draw in some additional revenues that would not have happened otherwise. If they can sustain and not be drawing off loans as others are, then they might have a chance to rebound faster and outperform the sector. I’m intrigued, but before the current state, I was thinking it was a good buy in the low 20s so I might be talking myself into this price soon.
     
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  2. Golfer

    Golfer Well-Known Member

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    Bargain is defined differently, by different people. I'd suggest that if one was to value a casino stock, the true measure would be EB/EBITDA. Even then you'd have to guess at growth.

    These numbers, less your guess at growth, are currently available.
     
  3. VegasBJ

    VegasBJ VIP Whale

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    CZR down $1.86 today to $4.22
     
  4. downhiller2010

    downhiller2010 Tourist

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    GLPI is looking like a great buy at nearly a 15% dividend yield. Most of their master leases are snior to any debt service payments as well.
     
  5. nostresshere

    nostresshere Mr. Anti Debit Card

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    Pretty sure many of use would be happy with 0% return right now. I was so close to going all cash last week and mad I did not do it.
     
  6. TheBlackjackKing

    TheBlackjackKing Low-Roller

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    I would not be, if I kept shorting for a few more days I would've had almost a 60% gain in just a few weeks lol
     
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  7. Dean Martin

    Dean Martin VIP Whale

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    Time will tell.....picked up some MGM well under $11 today in my (post retirement part time job) 401K. It's not my primary retirement but hopefully someday, some gravy on top and if it's not, I'm fine. I mean a person has to gamble somewhere when Vegas is closed:poker: Either the world gets better or it ends and if there's no Vegas, I don't wanna be here anyway...LOL :poke:(jk)
     
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  8. Crawfordesquire

    Crawfordesquire High-Roller

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    wynn down to 48ish today. mgm back under 11.
     
  9. Kisby

    Kisby High-Roller

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    I saw that, too. I still believe in the company and its future. I'm buying more shares while it's cheap!
     
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  10. Crawfordesquire

    Crawfordesquire High-Roller

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    agreed. I'm pulling a lot into my 401k and buying weekly. essentially anything that's down (everything duh) and pays a dividend. i've bought everything from SPG, to energy, to wynn/mgm, philip morris, and abbvie.

    EDIT: man bad/good day for casino stocks, considering when you buy :)
     
    Last edited: Apr 3, 2020
  11. 93 Octane

    93 Octane Chief Bottle Washer

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    Wynn at 48--- if you have 3-4 year horizon-- may be a decent buy here:poker:
     
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  12. rdwoodpecker

    rdwoodpecker High-Roller

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    uhh how about $10?
     
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  13. Dean Martin

    Dean Martin VIP Whale

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    Yea maybe it's just me but you couldn't pay me to get on a cruise ship. Not now and not 5 years from now. Those things have proven themselves over and over to be floating Petri Dishes :faint:
     
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  14. Crawfordesquire

    Crawfordesquire High-Roller

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    there, that's better :)
    with the price of gas down, not a bad buy.
     
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  15. Golfer

    Golfer Well-Known Member

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    I had some time so I went through both WYNN and CZR footnotes looking specifically for interest rate caps, swaps etc. WYNN didn't exactly do itself any favors with their lack of agreements, but at least they did something. CZR is tougher to get one's head around becuase not all of the terms of their "merger" are publically, or easily available. My initial instinct, based on what little is available, is that this is a train wreck. CZR management always has been IMO.

    What I am especially interested in is 18 Fremont Street Acquisition LLC for my own personal reasons. Especially the EB5 financing they attempted. This could tun into a mess as well. I do think the brothers have CC&C, but if it got bad enough, even those with CC&C need to do what they have to do.

    I'd agree there are some interesting gambles, possibly even speculative trades in this sector. I'm not sure I ever considered a casino stock a long term hold, but I have owned WYNN since its inception, and trade around it from time to time. What little I still own I should probably try to get out of after I look at cash burn, and when I think the present situation is going to be over. If it is longer than I anticipate, and I anticipate a shorter period than many on here, I cannot see any good reason that they sustain present dividend levels.

    While I am personally somewhat regionally shielded from a lot of this, I'll still feel the hurt in my business. Where I'm not regionally shielded is my ownership interest in BXMT. I communicate on a social level, and at a 30K ft. business level with some of their leadership, and to say they are concerned would be an understatement. Concerned even if this thing is declining by Memorial Day, which I think it will.

    I'm being purposefully aloof in this post, but there are some names, symbols and terms one should probably Google before they decide if a couple of the casino stocks discussed on here are viable long term investments. Maybe they are, I don't have the ability to time travel, but I'll personally proceed cautiously based on what I've been hearing from people a metric crap ton smarter than me.
     
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  16. Crawfordesquire

    Crawfordesquire High-Roller

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    i agree that i do not view casino stocks as long term holds. just too much is gray, especially with their action in asia. but there is often 'short term' value to be had. if i rub my crystal ball i think mgm will see 20 a share by this time next year, and i think wynn gets to 120 in 18-24 months. ill probably sell at those numbers.
     
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  17. crm1310

    crm1310 Low-Roller

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    I believe in the short term they can surely and will go lower. How low is anyone's guess. The longer this extends the lower they can go. I do not believe however in 12 months the MGM Grand will be owned by anyone other than MGM, Wynn by Wynn, Caesars by Caesars. They will still be there and people will still come to see and do things in Vegas that can not be seen and done anywhere else in this world. Talk about a moat. No bigger moat than being on the Las Vegas Strip. Invest in what you know love and use. I know I will be back as soon as they open back up!
    - Disclosure the author of this comment is Long Wynn and MGM and am buying every dip.
     
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  18. Dean Martin

    Dean Martin VIP Whale

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    Thought I'd hold longer but 30% in less than a weak and I have to take it down. You guys know the old adage about bull, bears and pigs. I hope to get back in but who knows. From $13 this could go down $5 just as easily as it could go up $5 in this current market.
     
  19. zoobrew

    zoobrew VIP Whale

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    WOW!!! It shows why the Federal Reserve can only do so much and zero rates are really only for people who don't need the money.

    Texas billionaire Tilman Fertitta is looking to raise more debt to keep his casino and restaurant empire afloat through year-end if the Covid-19 shutdown persists. The offering is ending a near one-month drought in the market for risky corporate loans.
    The businessman is offering potential lenders an interest rate of at least 15% to participate in a new $250 million loan for his Golden Nugget casinos and hundreds of restaurants under the Landry’s Inc. umbrella that have been ravaged by the coronavirus, according to people with knowledge of the matter.

    https://finance.yahoo.com/news/billionaire-fertitta-offers-record-15-201428078.html
     
  20. vegasdev

    vegasdev VIP Whale

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    I think I am about ready to jump in on BYD.
    I logged in and reactivated my account with Ameritrade that I have not used in many years.
     
    Last edited: Apr 6, 2020
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