In the after hours casino stocks made advances, after new data suggested they could be nearing a recovery.
According to a report from the Nevada Gaming Control Board gaming revenues were down 8.34 percent in May and off 13.71 percent for the year to date.
What makes those numbers bullish? They show the decline may be moderating.
"The declines weren't as large as some other recently reported declines," says Matthew Jacob, an analyst with Majestic Research. "I think there are some expectations out there that this is potentially the beginning of a recovery for the industry," he adds.
Jacob also says some gaming executives had noted signs of improvement in recent trends. However he also issues a word of caution, "we think recovery is going to take longer than maybe the more bullish investors are expecting."
With all that considered, how should you play casino stocks?
I’d look at Las Vegas Sands , MGM and Wynn because these stocks are down between 60%-80% since last year at this time, counsels Jon Najarian. Or look at WMS which supplies the casinos. That’s my number one pick on the supply side.
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