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StumblePublished Friday, June 27, 2008 | 3:07 p.m.
Updated Tuesday, Oct. 28, 2008 | 10:15 a.m.
Las Vegas casino stocks hit new lows today on negative analyst reports citing the compounding effect of higher fuel costs, slipping consumer confidence, cutbacks on flights to Las Vegas and slower growth prospects at their casinos in Macau, China.
Wynn Resorts' stock is the lowest since November 2006 and Las Vegas Sands reached a low not seen since February 2006.
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MGM Mirage shares fell another 6 percent today, hitting a new three-year low. And shares of Boyd Gaming, which have plummeted by more than 70 percent over the past year, are back to the price they traded in early 2003.
There's little doubt that short-term investors are accelerating declines in these stocks.
Longer-term investors have criticized the short-selling as an overreaction to any hint of bad news, pointing to earnings that aren't as bad as expected and a hoped-for rebound in tourism once new resorts open for business.
That still leaves plenty of time, critics say, for profit margins to deteriorate further.
Both MGM Mirage and Wynn have already bought back millions of shares when they were trading at much higher prices – a vote of confidence that hasn't lifted their stocks much.
Perhaps that job will fall to bargain hunters, who may still be wary of jumping in just yet.
How much longer the long-term investors will wait for some positive indicators to emerge while they take a bath on these stocks is an open question.
Las Vegas casino stocks hit new lows today on negative analyst reports citing the compounding effect of higher fuel costs, slipping consumer confidence, cutbacks on flights to Las Vegas and slower growth prospects at their casinos in Macau, China.
While MGM Mirage shares fell another 6 percent today, hitting a new three-year low. J TERRENCE LANNI MGM Mirage CEO is proberly glad he sold his Stock WHEN IT WAS HIGH making Him Millions of Dollars in a Single day through his Insider & restricted shareholder transactions.
LANNI J TERRENCE: Declared Holdings
Insider & restricted shareholder transactions reported over the last two years
10-Dec-07 *50,000 MGM Sale at $92.45 - $92.73 per share. Proceeds of about $4,630,000)
7-Dec-07 *2,696 MGM Sale at $92.06 - $92.16 per share.(Proceeds of about $248,000)
7-Dec-07 *47,304 MGM Sale at $91.50 - $92.05 per share.(Proceeds of about $4,341,000)
REVENUE EARNED FOR THESE TWO DAYS = $5,799,000
28-Feb-07 100,000 MGM Option Exercise at $12.74 - $12.74 per share. (Cost of about $1,274,000)
28-Feb-07 31,400 MGM Sale at $70.85 - $71.13 per share.(Proceeds of about $2,229,000)
28-Feb-07 68,600 MGM Sale at $70.37 - $70.84 per share.(Proceeds of about $4,844,000)
$7,073,000 Minus $1,274,000 = NET PROFIT FOR THE DAY = $5,799,000
16-Feb-07 120,000 MGM Sale at $68.82 - $70.11 per share.(Proceeds of about $8,336,000)
16-Feb-07 120,000 MGM Option Exercise at $12.74 - $12.74 per share. (Cost of about $1,529,000)
$8,336,000 Minus $1,529,000 = NET PROFIT FOR THE DAY = $6,807,000
6-Nov-06 440,000 MGM Option Exercise at $12.74 - $12.74 per share. (Cost of about $5,606,000)
6-Nov-06 900 MGM Sale at $45.64 - $45.66 per share.(Proceeds of about $41,000)
6-Nov-06 41,500 MGM Sale at $45.26 - $45.62 per share.(Proceeds of about $1,886,000)
6-Nov-06 139,900 MGM Sale at $44.96 - $45.25 per share.(Proceeds of about $6,310,000)
6-Nov-06 125,200 MGM Sale at $44.67 - $44.95 per share.(Proceeds of about $5,610,000)
6-Nov-06 132,500 MGM Sale at $44.36 - $44.66 per share. (Proceeds of about $5,898,000)
$14,135,000 Minus $5,606,000 = NET PROFIT FOR THE DAY = $8,529,000
GRAND TOTAL OF J , TERRANCE LANNI MGM MIRAGE INSIDER & RESTRICTED SHAREHOLDER TRANSACTIONS REPORTED OVER THE LAST TWO YEARS
$30,354,000 Million Dollars
Indicates that some (or all) shares are held indirectly (e.g. in a trust, by a spouse, etc.)
Source:
http://biz.yahoo.com/t/66/4197.html
I hope these Casinos take a bath like what they do to the players.
What happened to the OLD LAS VEGAS? You know the ones who catered to the customers with Free Rooms and Comp Meals. Who needs these 4 and 5 Star Casinos ripping us off with $400.00 room rates and their Signature Restaurants with equally expensive meals.
At a time of economic downturn which we are about to face soon the OLD LAS VEGAS would have prevailed. The New Las Vegas will not weather this economic storm and turn into dust into the desert.
No one will pay these HIGH Hotel & Restaurant Prices after paying the HIGHEST GAS PRICES and AIRLINE PRICES in our history.
Bring back the OLD LAS VEGAS!
Casino exeutives continue to make huge saleries,the players continue to lose, the public is not recieving their fair share of taxes from gaming, education,infastructure and all of the social prgramsare now going bankrupt. Not to mention casinos treat their employees like garbage. But you go Lanni aand Loveman, get it all and then go back where you came from. Carpetbaggers?
As you stand infront of a casino in wonderment there is only one way to win- go home.
What a bunch of winers. I have been coming to Vegas for years and its great. Those Casinos employ a lot of peaple and Vegas has great taxes. Quit crying and don't bite the hand that feeds ya. Everyone with a brain knows the house always wins.