) -- The growing gambling market in Asia is making casino stocks a hot bet. And for those looking to toss some chips into it, Jim Cramer says
Russell Rebalancing Triggers Volume Wave; Jim Cramer Sees Opportunity
“The artificial forces that drove the market lower seem to have disappeared,” Cramer said on his Mad Money program last night, setting up the potential for good buying opportunities ahead of today's Russel index rebalancing.
is one of the safer bets in the sector.
The casino, for sure, is a less speculative bet than competitor
Las Vegas Sands
, Cramer said during the "Mad Money" Lightning Round on Thursday.
Shares of Wynn have quintupled since its March low, and are currently trading at $69. While picking up any more gains might seem unlikely, it is still off about 34% from its 52-week high of $104.03.
While in the second quarter Wynn's profit plunged 91%, results topped forecasts.
Wynn currently has some major initiatives in the pipeline that could move the market.
What Happens in LVS...: Mad About Options
The casino is currently in the process of completing Encore, its second casino in Macau, which is slated to open mid-2010.
Wynn got approval for a $1 billion initial public offering
of its Macau casino operations.
Las Vegas Sands will also launch a $1 billion IPO later this year for its Macau operations. But while analysts believe Las Vegas Sands could grow to be the biggest casino player in the expanding Asian market, Cramer says this is all speculative.
In the second quarter the casino lost $222.2 million, larger than the $8.8 million loss in the year-ago period.
said Friday that it priced a private offering of $475 million senior unsecured notes due 2018 at approximately 97.4%. The company said it will use net proceeds to lower borrowings under its senior credit agreement and for general corporate purposes.
Shares of MGM were down 1.5% to $13.08, Wynn declined 1% to $68.73, and Las Vegas Sands fell 1.5% to $18.67.
-- Reported by Jeanine Poggi in New York
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