The gaming exchange traded fund (ETF) seems to have had a stroke of luck lately, but how long can it really last?
Investors are placing their bets on the gaming industry yet again, as many companies are improving their balance sheets and tempting speculators. Howard Stutz for Casino City Times reports that nine of the 10 publicly traded casino operators and slot machine manufacturers viewed by analysts saw their average daily stock prices increase during October, due to announced debt refinancing plans and infusions of capital through stock sales. [It’s Vacation Season: Watch These ETFs.]
Despite the news, Harrah’s Entertainment was unable to go public with a $500 million IPO the same week that GM did. Michael J. De La Merced for The New York Times reports that the company may try again later, at a lower price. [Losing Streak Looms For Gaming ETF.]
One trouble spot? Las Vegas recently received the dubious honor of being named the world’s fifth-worst economy. Ouch. Big bets on real estate are bringing the gambling capital down, but the good news is that the measure isn’t factoring in Las Vegas’ future potential, says ABC News.