The chips might be down in Las Vegas, but Steve Wynn and exchange traded funds (ETFs) aren’t shying away from a little roll of the dice. After all, what’s gambling without a little risk?
The tough economy is starting to hit even the gambling trade – there are fewer conventions in Vegas and vacationers are spending less at restaurants and nightclubs. And now, the share price of one of the largest publicly traded casinos, Las Vegas Sands, has plummeted 70% off its 52-week high, says Julie Creswell for The New York Times.
But despite all that, Wynn will open the $2.3 billion Encore casino resort later this year. Even though his stock has fallen 45%, it’s faring on the better end compared to competitors.
FocusShares ISE SINdex (PUF) could feel the falls of these bigwigs. Las Vegas Sands, Inc. is 3.2%, MGM Mirage, Inc. is 3%, while Wynn Resorts is 3.3% of PUF. The fund is down 22.3% year-to-date.
Market Vectors Gaming (BJK) holds 6.8% of Las Vegas Sands, 5.5% of MGM and 5.1% of Wynn. It’s down 27.1% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.