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Stocks on the Move for Gaming Companies

Posted on April 28th, 2010

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Economic recession has put a dent on the financial situation of many companies, causing them to stop in their tracks for expansion. This has effectively dampened the spirits of small and medium scale businessmen and has even slowed down bigger ones. Although this is a scenario that the business environment has projected since the recession hit several countries, things are slowly picking up in the US casino gaming industry.

This is definitely good news for casino operators as it signals that things are starting to look up for many of these casino gaming companies. One can expect good things to continue rolling in and trickling down to players.

Financial Setbacks

There had been some gaming companies in the United States, considered as big names in the industry, that have struggled for the past two years due to financial setbacks primarily brought about by the economic situation and consequent poor company decisions. These two have definitely made investors think twice of investing their cash in the face of potential risks.

Take for example MGM Mirage and Las Vegas Sands. They are but only two examples of high profile companies that have seen better days and are now struggling to stay afloat because of the recession. Their stock prices have been reduced to their lowest in years, and it is easy to see how that could negatively impact many aspects of the business.

Aside from these two big companies, there are some who had planned on building big hotels and casinos but had to put their plans in the back burner for now. There are others who got caught in the middle of expansion plans and found themselves stuck with unfinished constructions in several parts of the United States, bringing to front that not all is well with the company.

Improving Economic Situation

Things are starting to pick up though as consumer spending is moving towards a more positive outlook, signifying that the economy is being turned slowly around. Even gaming companies have started to gain from this improvement, such that stock prices for Las Vegas Sands hit its highest since 2008 this week alone, closing at US $25.12. The company has started work on international projects, and this has greatly helped diffuse losses that they have seen due to the US economic recession. The company is also into developing integrated resorts that offer first-class accommodations, gaming, entertainment and even conventions and exhibitions. Their properties include world-class amenities and upscale restaurants. In the United States alone, they own and operate The Palazzo and The Venetian, which are luxury resorts located in Las Vegas Strip. They are also mainly responsible for the development of the Marina Bay Sands in Singapore, which has helped stabilize the company despite the financial blows that the United States has dealt with in general.

MGM Mirage is also moving in to close an IPO in the continent of Asia, which should help cement the company’s economic status further. The stock price for this company closed at US $15.89, which happens to be the highest price ever since the latter months of 2008. They are also working on several more projects, including one resort to open in Vietnam.

Wynn Resorts has remained at the top and continued to trend upwards with stock pegged at US $89.50. The company has recently opened the doors of its new Macau hotel and casino, which should make this company continue to surge forward. They hope to reach the US $100 price per share, which they last had back in August 2008.

All three have their respective properties in Las Vegas, so competition is quite stiff, especially since other companies are trying to get their share of the market.