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Take the gamble on these gaming stocks: Pimco’s Kiesel

Investors looking for companies that are growing by double digits, whose equities are cheap and whose bond yields are high can look no further than certain players in the gaming industry, Pimco's Mark Kiesel told CNBC's "Power Lunch" Tuesday.

For a pure play on the "amazing" Las Vegas recovery, he likes MGM Resorts, which has 42 percent of the city's room supply.

"Everything is kicking in right now for MGM," said Kiesel, Pimco's deputy chief investment officer.

RevPAR (or revenue per available room) is up 6 to 7 percent, occupancy is 96 percent and growth in EBITDA (that's earnings before interest, taxes, depreciation and amortization) is up 12 percent, he noted.

The MGM Macau casino resort, in Macau, China.
Lam Yik Fei | Bloomberg | Getty Images
The MGM Macau casino resort, in Macau, China.

Wynn Resorts, which is expecting to open a new casino in Macau in 2016, is also on his buy list.

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"This company has the potential to grow EBITDA 40, 50 percent over the next two years. There's no kind of growth like that out there," Kiesel said.

For a pure play on the mass gaming market, Kiesel likes Las Vegas Sands.

"The mass market is growing 31 percent in Macau right now. We think longer-term it grows 15 to 20. Las Vegas Sands is a great play on that."

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Macau-based Melco Crown Entertainment is probably the cheapest company, he said, trading at 10 times earnings. He thinks it has "excellent upside" to Macau.

So how should investors play these names?

"Buy everything you can buy in these companies," Kiesel said.

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Stocks are trading at around 10 to 11 times EBITA multiple, bonds are yielding around 5, 5.5 percent and the companies are growing by double digits for the next several years, he added.

"These companies throw off significant free cash flow, organic deleveraging power. You want to own the entire capital structure in these companies."

—By CNBC's Michelle Fox.

Disclosure: Kiesel and Pimco own MGM, Wynn, Las Vegas Sands and Melco Crown Entertainment in a trust.