Dorine, OT
Shorting Mirage is just like gambling. Therefore you place a protective stop (or buy a call). However, I think the company is over-extended having average room costing $ 550,000; it is saddled with huge debt. I also go to LV regularly. The main source of revenues for Mirage is highrollers from Asia and Middle East. You do not see many of them. Since you are in the travel business you see many tourists going there, but how many are highrollers? It is a fact that every new year's eve, groups of highrollers come from Asia, with each person depositing $ 250,000 minimum in the bank. They are wined and dined and get complimentary suites etc. But this year, where are those groups? Then Las Vegas is left with middle class gamblers. Even downtown is suffering. Go there and check yourself. Talk to the shop owners in the casinos.
Come November 3rd, California voters are asked to approve Proposition 5, Indian Gaming Casinos. LV is scared that they will take away business, therefore they are funding the "NO" vote. Should that proposition 5 be voted in, watch out Las Vegas casino stocks. I inmtend to cover the short sales at that time.
In short Las Vegas casinos proper because world wide business. It is difficult to rely primairily on domestic money. As I said: beaten stocks will be under pressure by the end of the month.
Thank you for the counter opinion which keeps me alert.
PAL |
