Cramer's Stop Trading! Casinos a Risky Bet (1/30/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Friday January 30.

Las Vegas Sands (LVS), MGM Mirage (MGM),Wynn Resorts (WYNN), Allegiant Travel (ALGT), SPDR Gold Shares (GLD), Agnico-Eagle Mines (AEM)

Casino stocks are not a good bet and many of these names have hit “critical” levels. Cramer would avoid Las Vegas Sands, MGM Mirage, Wynn Resorts and also Allegiant Travel. Cramer and Erin Burnett discussed the latter’s interview with famous investor Julian Robertson who said that a recovery could bring interest rates as high as 18%. While this may pose many problems, there are ways to make money from this scenario. Those who subscribe to Robertson’s thesis should focus on gold, hard assets and real estate. Cramer would take a look at SPDR gold Shares and think Agnico Eagle mines could double or triple if interest rates reach the teens.

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Comments

[TCK:]

Brilliant call on casino stocks after losing 90% !

Feb 02 06:36 AM

[Rhett:]

Oh yeah, and be sure not to invest in the housing market too.

Feb 02 10:28 AM

[Richard Col...:]

Cramer is the same one who told everybody to buy gaming stocks before they lost 90% and to buy real estate as a safe investment before all the forclosures.

He means well, but just not too bright and not a very good actor either.

...looking for a real opportunity? Buy casino stocks NOW; don't wait for Cramer to tell you to buy back in when the casino stocks have recovered from their all time low __ which he will.

Get a real job Cramer!

P.S.
You're ugly too.

Daniel Kowkabany

Feb 02 11:05 AM

[Cary:]

The debt to equity ratio of the gaming stocks make it impossible to take the risk. Some of the more leveraged of these companies will likely not survive. LVS at under $5.00 is pretty attractive until they have to file for protection at which point you may as well have spent your money in their slot machines. The plan most of these gamers took for Asian expansion has gone down the rat hole and will likely stay that way for a while, but most are too committed to back out now. My pick for gold is the UGL which I bought at $28.00 and still looks attractive at $33.00.

Feb 02 01:08 PM

[Maxe Paul:]

As usual Cramer is selling casinos at the bottom and buying gold at the top, no wonder the masses love this idiot, it's a case of the "idiot leading the idiots".

Feb 02 11:20 PM

[Gento:]

Great when stocks are losing more than 90% analists are coming up with a sell rating, buiness as usual !!!! MGM in this case, a nive buying opportunity

Best Regards from Amsterdam

Feb 03 02:39 PM

[wagnermr14:]

Cramer also said buy DRYS at $12. Two days later it started its fall to 4. I still remember him calling the financial bottom last year.

Feb 05 01:48 AM

[User 351912:]

Well Im buying casino stocks. They are at their lowest in a long time and have the potential to go up quite a bit. Its not like the economy will stay like this forever. Im willing to take the risk, guess I am crazy....

Feb 05 06:44 PM