This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will Casino Stocks Crap Out in 2013?

The second issue with Caesars is they are controlled by a large fund. This is a double-edged sword. While having a say in the company isn't likely to happen soon, the smartest guys in the room are probably from the fund.

Las Vegas Sands

Las Vegas Sands remains my top pick at this time. The combination of U.S., China, and Singapore casinos instills resilience for economic downturns. Interest expense for the rather large debt load continues falling, and there is plenty of time to secure renewed financing as debt comes due. TheStreet'sTimothy Collins recently wrote about LVS volatility Keep an Eye on Volatility . (You need a Real Money Pro account to read it, but Collins' analysis alone makes it worthwhile.)

LVS Chart LVS data by YCharts

No need to hurry or rush to the tables though. The current chart pattern is a bearish trend and $30 is the next major support area. I don't expect $30, but $35 is not off the table. September $34 strike put options are attractive at $1 per contract this week. (Read my article Can 'Big Coal' Dig Out of its Hole? .)

LVS Debt to Equity Ratio Chart LVS Debt to Equity Ratio data by YCharts

If LVS does continue falling and an option writer was exercised, the cost basis for shares is only $33. Selling puts mitigates risk, pays you for your time and if The Sands doesn't fall enough to get exercised the return is 3% for a holding period of 60 days.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
UNG $6.93 2.67%
CCL $49.16 -0.67%
LVS $45.21 -1.20%
MGM $21.47 0.14%
WYNN $91.20 -3.40%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs