The Gambling Industry -- a Risky Bet!!
16 Abril 2010 - 9:38AM
Marketwired
www.rothmanresearch.com -- This recession, along with its endless
negatives, has proven to be a myth-buster for the casino industry
which has long toughened its stance as a recession-proof sector.
After a 4.6% decline in revenue in 2008 followed by another 5.7%
tumble in 2009 throughout the United States, the casino industry
feels more vulnerable than ever. Making matters worse has been the
sharp decline in the number of people visiting the Sin City par
excellence, Las Vegas. As the economy continues to remain weak,
even in light of apparent signs of recovery, people are still wary
of their budgeting and prefer to stay home rather than partying and
gambling in Vegas casinos and resorts. After a brief rally on hopes
that the gambling sector was making progress last week, the
industry might soon dive in red territory following
MGM Mirage's (NYSE: MGM)
announcement that it is anticipating a broader first quarter loss.
Yesterday after the close, shares of MGM collapsed by 6%.
*Direct & free downloadable report on MGM
Mirage is available by signing up now at
http://www.rothmanresearch.com/article/mgm/23435/Apr-16-2010.html
The economic downturn did not only affect gambling companies but
it also had a huge impact on those companies that supply casinos
with their gaming machines of all sorts. Casino equipment makers
are also feeling the full substance of the recession and it is
mainly due to their dependency on casino companies. With casinos
making less money (not to say losing money) and attracting less
visitors, demand for new machines has dipped. Operators in this
segment of the industry are also been affected by apprehensions
regarding near-term slot visibility amongst others. "Some experts
believe that a decline in casino equipment makers share prices is
actually a good time to take position in these stocks as an
economic recovery would start to bring more gamblers to casinos
which translates to a regain in business," commented Jack Benassi
of www.rothmanresearch.com. "One of my favorite players in this
space is WMS Industries Inc. (NYSE: WMS). The
company will be reporting its fiscal 2010 3rd quarter on April
26th."
*Complimentary downloadable research on WMS
Industries Inc. is accessible upon registration at
http://www.rothmanresearch.com/article/wms/23436/Apr-16-2010.html
The earnings season might prove to be a bumpy ride for the
casino industry, but with economic recovery starting to clear the
recessionary clouds and the holiday season approaching, this
industry could see a remarkable turnaround.
*www.rothmanresearch.com is a source for investors seeking free
information on the gaming industry; investors are encouraged to
sign up for free at
http://www.rothmanresearch.com/index.php?id=6&name=Register.
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