Bolling: Roll the Dice on Melco and Wynn

I sold out all of my casino stocks.

But I love to trade these stocks and trade them when I see one that seems undervalued. I have owned Melco PBL Entertainment(MPEL Quote) for about two years (since the IPO) on the feeling that the great Stanley Ho's experience will aid the running of a Macau casino empire-in-the-building. In just two years, the Melco PBL Entertainment's Macau market share has jumped to more than 18% from 1%.

That is a success story in the making. I will own MPEL for the long run. This is a long-term hold and a member of my base portfolio. I am not in any other casino stock right now, but I think the space has been brutalized as the recession proofers bailed out on a recession sensitive sector. I really like Wynn Resorts(WYNN Quote). I have been in and out of Wynn for years. Thankfully, I am not in now, but intend to buy Wynn as soon as I get confirmation that 13,000 becomes support for the Dow Jones Industrial Average, not resistance.

Steve Wynn simply knows how to run a casino. The man started as a pit boss and worked his way into running a casino empire. The Wynn name is respected and Steve is a visionary. He will also be a major player in Macau as he owns one of the few remaining coveted licenses to operate a gambling establishment. The Macau property (land) alone is estimated to be worth in the hundreds of millions.