Last month the first ETF adhering to strict Islamic beliefs, Dow Jones Islamic Market International (NYSE: JVS), began trading. Following Shariah law, the index excludes anything close to investing in “sin stocks” or firms that produce or market alcohol, tobacco, gambling, weapons, or pornography.
Casino stocks have been more than down on their luck lately. In fact, they’ve been on the ropes more than one of their prizefighting boxers. And it’s no wonder.
Two years ago, the pundits were agog over the prospects of the former Portuguese enclave of Macau. Fueled by fast-earned money burning a whole into the collective pockets of the nouveau riche Chinese middle class, Macau surpassed the Las Vegas Strip as the world’s most lucrative casino market. But growth has stalled… not just in Macau but everywhere businesses depended on drunk sales reps blowing little Pugsley’s college fund at the blackjack table during a convention.
To stay in Vegas, you’d have to get to Vegas. And that costs money no-one is willing to spend right now. Accordingly, the supposedly recession-resistant vice stocks are taking it on the chin. Just yesterday [Thursday], we claimed our own 25% short profits share from the collapse of Las…
J. Christoph Amberger says the casino industry is following the automaker sector into deep water. He says Las Vegas Sands Corp. (NYSE:LVS) stock is likely to keep on sinking as access to credit dries up. Short traders have a chance to make 20-30% gains by Christmas.
The casino industry has been one of the worst hit by the global downturn. But Jim Stanton says last week’s impressive rally could signal a bottom for sector “stalwarts” like LVS, WYNN and MGM . And mutual fund GACFX is a great way to spread risk on gaming sector investments.
Election day could bring a change in gambling legislation in Maryland, says Laura Cadden. And this would be great news for Penn National Gaming Inc. (NASDAQ:PENN), which has the cash to expand into new operations. Laura says the new law (if passed) could give PENN a post-election spike of up to 20% in November.