No. 2 - High Rollers Bet On Hotels
The hotel/casino sector was among the hardest hit during the past month as many of the stocks were pricing in a buyout or merger in the near future. This week shares are coming back after Dubai said it would invest $5 billion in MGM Mirage (MGM) and speculation increased 90-year-old billionaire Kirk Kerkorian would add a stake in Starwood (HOT). Why are some high rollers growing interested in the hotels again?
Pete Najarian expects Starwood stock to go higher because of heavy options volume Tuesday. He adds that Wyndham (WYN) is another name he’s watching because he likes its stock buy back program. He calls these two names “best of breed.”
Stacey Briere Gilbert says she’s a buyer of Starwood (HOT) because the credit crunch makes it harder to build more hotels, and that’s a positive for those that already exist. Stacey adds she also likes Gaylord Entertainment (GET) which deals in conventions.
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Trader disclosure: On Aug 22 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Najarian Owns (BMY), Najarian Owns S&P Puts: Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP: Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP: Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies; Gilbert Has A Long Position In (HOT); Susquehanna Financial Group Is A Market Maker In (AMTD), (AAPL), (BCSI), (ETFC), (FWLT), (GYMB), (IRBT), (JBLU), (NTES), (NTAP), (UAUA), (WYNN) (ZUMZ), (CTSH) Susquehanna Financial Group And/Or Affiliates Together Own More Than 1% Of (BCSI), (BSC), (CAL), (LCC), (NMX), (NYX), (NTES), (UAUA), (IMB), (GT); Susquehanna Financial Group And/Or Affiliates Together Owned More Than 1% Of (FCX) On 8/20/07