
We rolled the dice with casino stocks and won, but now it’s time to take our chips off the table.
As the real-estate market collapses and the economy slows, companies like Las Vegas Sands [LVS
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] are feeling the crunch, Cramer told viewers Thursday. He pointed out LVS’s 19-cent earnings miss last quarter as proof. And even though Wynn Resorts [WYNN
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] and MGM Mirage [MGM
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] beat expectations, those stocks should be sold, too.
The problem is that high property values have been holding up these stocks, and those values are starting to fall – precipitously. Not to mention, it’s more expensive than ever for people to travel to Vegas and Atlantic City. Gas for a round trip between New York and A.C. is up 37% over the past two years, and Los Angeles to Vegas is up 26%.
Competition’s growing here in the U.S., developers have overbuilt, and Macau isn’t returning the figures Wall Street expected. Cramer’s advice: Cash out.
Cramer also reiterated his sell call on Ambac [ABK
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], PMI Group [PMI
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], MBIA [MBI
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] and MGIC Investment [MTA
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].
Click for the rest of Thursday's show |
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