Despite the threat of a slowdown, at least one major investor appears bullish on casinos and hotels. On Tuesday Kirk Kerkorian revealed plans to focus his portfolio on gaming and energy companies.
The billionaire investor, who is already the largest shareholder of MGM stock said in a prepared statement “in light of current economic and market conditions, (I) see unique value in the gaming and hospitality and oil and gas industries and, therefore, have decided to reallocate resources and to focus on those industries.”
It’s a classic definition of optimism, counsels Guy Adami. But, personally I would not buy the casinos based on Kerkorian.
Absolutely not, exclaims Jeff Macke. The casinos are going to turn at the same time as the consumer and that’s not now! He's way too early on the gaming stocks.
I think MGM is cheap, counters Pete Najarian and I own some. Plus, I got almost $3 for the November calls which brings the price down. (In other words he owns MGM and is short MGM calls.)
What do you think? Tell us now!
On the flip side of that coin is Kerkorian’s decision to get out of Ford. Specifically, he’s sold 7.3 million of his shares in Ford Motor Co. and plans to further cut what is now a 6.1 percent stake, for a potential loss of more than half a billion dollars on the investment.