Traders are pumping MGM upwards. They reported somewhat lackluster earnings that suggests that Las Vegas is still in depression, yet traders are excited as they think that CityCenter is doing really well.
We shall see what happens when Cosmopolitan (a $3.3Billion Behemoth now larger than CityCenter $2.65Billion value) opens right beside CityCENTER! REVPAR will definitely take a huge hit due to oversupply.
Unless Las Vegas economy roars, MGM will remain quite sad. But if you want to gamble your way to Nevada, then MGM might be a good bet. As a full blown recovery will provide huge huge upside. Could go up to $30 in 2 years.
But for now, I would stay out and see what Cosmopolitan is going to do to CityCenter. (It might default).
Waiting eagerly for BIG BEN statement about the QE2.
Here’s a classic and funny video.
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