$11.01
0.38 (+3.57%)
MGM Mirage (MGM)
CAPS Rating:
Through its wholly-owned subsidiaries operates a number of casino resorts both in the U.S. and international markets including the MGM Grand, Bellagio, and The Mirage.
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They say the only way to win at Las Vegas gambling is to not bet. Except for Las Vegas casino stocks, which the odds are going to zero. An overbuilt and over-hyped city built on illusion of the "wealth effect" Americans are losing and will not likely return for decades.
Las Vegas will die a slow death. Every state wants gambling revenue, so will broke Americans drive / fly all the way to Vegas or drive 20 minutes to the Indian or River Boat Casino to lose their money?
Would you want to retire in 100+ degree heat?
Eventually, water, electric and food will become pricey as oil is not coming down and Las Vegas is in the middle of a NO WHERE DESERT, no water, no food near by and increased transportation costs. Cash in your chips and walk away, is my recommendation.
I have worked , lived, and played here in this city that should not be bet against. They always come back.
I am betting. I am winning. In fact, I plan on winning some more. Because you live there, you may not recognize all the casinos popping up all over the US. Most Americans are likely with in an hour drive of a casino. The same amount of time a guy would spend in a TSA line getting himself, his wife and his kids felt up by a couple near criminal looking high school drop outs, who like the authority they have to harass you at the airport.
You're winning right now because everything has gone down. It's generally not to bet against a "best of brand"-type of company, especially with a PE under 3.Anyway, MGM is a strong global brand, and they're certainly not limited to Las Vegas. You mentioned that new casinos are popping up all over the US. Well, MGM owns, or is at least associated with, many of these new casinos. They have new projects going on all over the US, China, and I'm sure in many other countries as well. They have too many projects to even keep track of them all, but locally I know they built a huge MGM addition onto Foxwoods, and soon they may be able to build their own casino in the Boston area.In the short term, who knows what will happen. But I expect this stock to be back up around $40-$50 before 2011.
deepfryer,Good response. I think you are making a serious contrain bet here, I can respect that. But MGM's 3 P/E is a mirage that will be revealed once their earnings are revealed and their debt needs to be serviced. You cannot make people gamble, and with out home equity, where will Americans get the money? Americans have net zero savings.My motto is built in the bubble, going under in the bust especially, Las Vegas. The home equity loans that built this city are going to vanish, like much of the population in this city.Have you ever seen any of the abandon ghost towns around Nevada? I think Las Vegas will one of the biggest.
So people won't travel to Hawaii because there are beaches in New Jersey? People won't buy iPods because Sandisk has cheap MP3 players? Please.
New Jersey beaches are not the same as Wiakiki. New Jersey weather is not Hawaii weather. But I put you at black jack table, you would not know if you were in Kenya or New Orleans, or Los Angelos, or the Phillapeans or Poland. A table is just a table, the addiction can be fed anywhere.I think Los Vegas will be with us for a long time, just like Pompeii.... Ipods and scandisks? Apples and oranges. Black jack, slot machines are the same everywhere. Las Vegas was built on home equity from NV and CA, which has vanished into thin air.
Yeah...ok.
I live in vegas.. it's going to make a come back trust me :)
I live in a condo, its going to make a come back, trust me."I live in vegas.. it's going to make a come back trust me :) "Yes, like Pompeii, it will be rediscovered
I bet on MGM at 3.20 sold half at 6.20 am now riding on the houses money so where it goes I really don't care the risk is out. we could win big or we could lose what we left there who cares. I did visit vegas recently to view the city center and to gamble "did pretty well" but I can tell you this Vegas is BUSY as all get out ,gambling is an addiction like umm oil. those casinos are not empty and room availability was still tight.Vegas is still boom town look for yourself fools and city center is amazing this will go I have no doubts about it and I will be a part of it. win win win MGM
"gambling is an addiction"That can be fed anywhere, including online, at the nearby river boat or Indian casinos. Vegas will dry up along with all the home equity of all the McMansions within 500 miles of Nevada.
"I live in a condo... blah blah blah"
My reply to your idiocracy.
Well I live in a house out here you simpleton. Yeah, I own two condos which I rent. Don't cry when this stock skyrockets when city center opens. It will succeed. You will be wrong. I will still be laughing all the way to the bank.
Oh and your "middle of no where" comment... Stupid. I could say you live in the middle of the woods, or the mountains or whatever hole you come from. Do you know the population here? Yeah. Do some homework. The stock is down but wait, ALL THE STOCKSARE DOWN. SO BOOOOooo!