Shares of hard-hit casino operators have rebounded sharply after retreating as much as 50% over the past year.
Wynn Resorts (WYNN) shares have skyrocketed after it was announced that Texas billionaire Tilman Fertitta, owner of the Houston Rockets has built a 6.1% stake on the company, according to a Form 13-G filing with the SEC. Wynn owns the Wynn Las Vegas and Encore Las Vegas properties, as well as propertied in Massachusetts and Macau, China. In just four days, shares of WYNN ran up almost $15 per share from $55 to a high of $70.11.
Speaking of Macau, the Chinese resort and casino Mecca is getting a tourism boost with the announcement that China residents can travel to Macau using an e-visa, instead of using in-person applications to travel to the Macau resorts. This not only helped Wynn, MGM resorts (MGM), Las Vegas Sands (LVS), but also greatly helped Chinese casino operator, Melco Resorts and Entertainment Ltd. (MLCO).
In other gambling stocks, Draft Kings (DKNG) and Boyd Gaming (BYD) have also made some strong moves to the upside. Boyd ran up from a low of $46.10 on September 26 to a high of $58.86 on November 1.
Casino and gaming stocks are making a very bullish run at the moment. From a technical standpoint, most of them are nearing or at the 200 SMA level, which could signal a brief cooling off period.
Stay tuned as we follow this sector in the months to come.
Wednesday Closing Bell, November 2 (4 PM ET)
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