The top casino stock brokers have a lot to do with your success as a gambler. That’s why it’s important that you find one that meets your needs. As with anything else, there are many options available for players at casinos across the world. Finding the top ones requires some research. In las Vegas, however, it is easier than virtually anywhere else to research the top gambling casinos. Here are some tips that may help.
The recent financial crisis in las Vegas and the rest of the country has had a profound effect on the casino industry. At one point, there was a legitimate crisis in almost every casino. However, the big names that stood out right above the rest for the most part were those that had great management and were able to weather the storm. The top casino stocks on the market right now include Macao Resort Resorts, Las Vegas Sands Corp., and the Melco Starcasinos.
You want to research the companies involved in these stocks before you put them on your list. First of all, you need to know whether the problems experienced by the casinos are due to outside influences or if they are the result of poor management. For instance, did the casino industry face a problem because of the faltering housing market in the United States? If so, you’ll probably find stocks of top rated companies that are involved in the housing market to fall.
Next, look carefully at any potential dividends. Most of the major casino stocks will be selling a dividend in the next two years. For instance, within the last two years the Board of Directors of Wynn Resorts declared a 15% dividend. If it falls by that amount or more, that will send a negative signal to investors. Therefore, if you’re looking for high earnings growth, you need to stay away from the dividend announcements of companies like Wynn Resorts.
When you add the negative impact of a poor stock price to a poor dividend payment, you get a headwind against the company. This can prove to be very problematic for the casinos. Investors tend to lend money to resorts based upon their future earnings growth. If they see no signs of that happening, then they won’t lend money to the resorts. In effect, a decline in the share price can cause a downward spiral in fortunes for the company.
One other area to keep an eye out for is the type of casino business you’re talking about. Are you talking about a Las Vegas Sands Corp. (LVS) owned property or is it a publicly traded company that has multiple locations? If you’re referring to LVS properties, you should pay special attention to the following potential concerns: the pending acquisition of the Stratford-On-Avon Resort by Las Vegas Sands Corp. (LVS); the announcement that the company will purchase the Fidelity National Financial Services’ (NFDS) stake in the Las Vegas Sands Corp. (LVCS); and the potential purchase of a portion of the shares of Silverton, NV by LVCS. Should there be any of these problems with one of these projects, there could be negative implications on the dividend because of the increase in price, which could impact shareholders. The potential price decrease in the Stratford-On-Avon Resort (ROC) could cost the Dividend Reinvestment Screener negatively, which could hurt the dividend.
There is also the potential for investors to lose money when the current stock prices of these Vegas casinos decline. However, some people view this as the opportunity to buy into a top-rated company. Some of the world’s most attractive gambling resorts are located in Macau, which is also the home of Macau casinos. In recent years, Macau has seen fantastic growth and its financial attractiveness makes it a prime destination for investors to make an investment in the casinos.
The bottom line is that there is no one right way to invest in Las Vegas Strip, Laredo Bay or other Strip casinos. The best approach is to determine an area of interest based on the location, amenities and total returns associated with that location. Then compare the current stocks of these gaming companies to the market performance of the top stocks in the industry and to the key indicators of potential for future profits. A wise investor will then diversify his or her investments across many different casino stocks to create a portfolio that can maintain positive earnings-per-share growth.