What happened in Vegas?
It’s official: The economic slowdown has arrived in Sin City.
Last week, Wynn Resorts posted a profit drop of 20%, while Las Vegas Sands reported a loss for the same period. On Monday, Tropicana Entertainment filed for Chapter 11 bankruptcy protection. Today MGM Mirage reported a 29% drop in profits.
Sounds like a string of really bad luck, right?
The good news (if there is any) is that it seems as if the downturn had already been priced into these stocks. Take a look at their performance over the past six months: Wynn Resorts down 14%…Las Vegas Sands down 37%…MGM Mirage down 43%!
Casinos were often believed to be recession-proof. If I were a betting woman, I’d say those days are over.
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1 opinion for What happened in Vegas?
cptsteiner
May 7, 2008 at 12:25 am
Yet another ripple of higher gas prices and airline contraction. Once this oil supply/demand curve sorts it’s self out, Vegas will light up again and so will the stocks.
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