These 5 Casino Stocks Are Hitting 2019 Lows: Travel Industry Issues? - Business Quick Magazine
Friday 6th March 2020
A picture of the Las Vegas strip at night taken from a high vantage point.
Las Vegas Sands. Wynn Resorts. MGM Resorts International. Caesars Entertainment. Boyd Gaming.
Each one of these big casino/resort stocks is hitting new lows for 2019. While the big stock indices seem to have bottomed (however temporarily) and bounced higher on the rate cut news, the names in this sector just keeping going lower and lower.
Effects of the coronavirus hitting Las Vegas and other tourist destination spots? Forbes contributor Laura Begley Bloom notes how much the travel industry is being affected right here. It seems likely that casino/resorts may suffer the consequences.
You can see how the uptrend line connecting the August, 2019 low with the October, 2019 low has been violated. Note how the price has dropped below the level of the mid-January sell-off. Remember that most of the stock market measures have bounced back upward -- not so with Las Vegas Sands.
It's extraordinary to see that the price has dropped all the way below the level of the lows of August and October of last year. You can see the red volume bars below the price chart indicating the increasing levels of selling steadily since December. Technical analysts will be examining the weekly charts to identify the next possible support area for WYNN.
This is another casino price chart showing extraordinary levels of selling and with increasing intensity. MGM in late February took out its previous lows from September and October of last year. Just look how much further it's dropped since then. Note the growth of the red volume bars below the price chart.
The uptrend line off of the August/September/October 2019 lows was broken through in late February of this year. Since then, the stock has tanked all the way back to that August/September low. Be sure to notice the very large red volume bars along the bottom of the chart.
Sam Boyd's legendary old casino company is having a rough price bout as well. The stock has dropped below the uptrend line that had connected the August, 2019 low with the dip in October, 2019. Now, it looks as if the price is closing in on those old lows from last summer.
The main point here is that despite the bounce in most other sectors -- mostly on rate cut anticipation and rate cut news -- this is one sector not yet benefiting. Concerns about the impact of a pandemic on the travel industry -- and on travel destinations like Las Vegas -- are keeping investors away right now.
How long this may last remains to be seen.