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winnachickendinna
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Gambler, part time invester, fisherman, and comedian. B.A. degree in criminology with a half semester M.B.A.
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  • What May Be Negative For The Gambler Is Positive For The Investor

    A public room for gambling and entertainment, known as a casino, is not only a distinct getaway for wagering bets, but now corresponds with publicly-traded stocks. This association was made possible in 1973 after Harrahs became the first casino company to be listed on the New York Stock Exchange (NYSE) .

    Casino games include, but are not limited to Black Jack, Craps, Slots, Video Poker, Horse Racing and Sports Betting. On the NYSE, you will also find casino stocks such as Marriot Vacations Worldwide (NYSE:VAC), MGM Resorts (NYSE:MGM), and the large-cap stock Las Vegas Sands (NYSE:LVS).

    According to the 2006 Gross Annual Wage report, Americans lost approximately $91,000,000,000.00 on all forms of gambling combined. The thrill of gambling not only leads to financial problems, emotional problems, drug abuse, and broken families, some even end up committing suicide.

    The following are payout percentages for casino games:

    GameHouse Edge

    Craps (double odds)0.60%
    Blackjack0.80%
    Baccarat (banker)1.17%
    Baccarat (player)1.63%
    Pai Gow Poker2.5%
    Roulette (single zero)2.7%
    Three-Card Poker3.4%
    Let It Ride3.5%
    Sports Betting4.5%
    Caribbean Stud Poker5.26%
    Roulette (double zero)5.26%
    Big 6 Wheel11.1% to 24%
    Keno25%

    Unlike casino gambling, a stock represents the actual ownership of a company. For example, whether you choose to own thousands of shares in Las Vegas Sands or a dozen in MGM resorts, you will still have a piece of the casino pie. A privilege which allows the average individual to direct a business with common stock voting privileges and in some case ultimately acquire a large enough stake to initiate changes in the company.

    A publicly traded casino stock specifically allows gamblers to have a long position in a gambling related investment without the impulsive bets involved in short resort stays. No doubt, at Mandalay Bay Hotel & Casino you will find a sandy wave pool. A Las Vegas resort is a lot more relaxing than starting an online trading account. Patience is indeed a virtue and when the bull market calls the common stockholders will be packing their bags to play responsibly with their capital gains.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I enjoy gambling on occasion. Speculating is my thing and gambling is my caching.

    Tags: MGM, lvs, vac
    Oct 29 12:27 PM | Link | Comment!
  • The Gold And Silver Reaction

    24 hour gold silver ratio chart

    The job data is out and apparently traders are not buying it. As you can see by the more recent Gold/Silver ratio today (www.kitco.com), silver closed in on gold after economic uncertainty was factored in. Silver is known to be a lot more volatile than gold and when the metals prepare for a bull run it is no surprise when silver kicks off the race at a faster pace. For example, if gold goes up 1% you may find silver moving up 3%. A basic technical analysis of SLV and GLD shows this volatility. When that occurs the ratio becomes smaller and comes close together. Pre-market the ratio was 59.8:1 and quickly dropped to almost 58.6:1. Still far from the controversial gold buff ratio of 17:1. Then again 17:1 is about as pragmatic as every dollar being backed by physical gold.

    (click to enlarge)

    Now with the Affordable Care Act (Obamacare), employers are ahead, since a part time worker employee base has been cheaper than having full time employees. This reminds me of my childhood vacation to Greece. I observed workers waking up in the morning and heading to their place of employment. Approximately 4 hours later, employees went home for a Siesta and never made it back to work again. Here in the U.S. I can see this being a blessing for afternoon traffic. In reality, dual income families have a hard enough time making ends meet and prices at the local supermarket increase regardless of how speculators argue deflation vs. inflation.

    The following public information was provided by the Bureau of Labor Statistics:

    Table 1.
    ItemAverage price (dollars)
    January 1913January 2013

    Bread

    $0.056$1.422

    Flour

    0.0330.524

    Fresh milk, per gallon(1)

    0.089/quart (or 0.356/gallon)3.526

    Cheese

    0.2225.832

    Butter(2)

    0.4093.501

    Coffee

    0.2995.902

    Potatoes

    0.0160.627

    Rice

    0.0860.715

    Sirloin steak

    0.2385.705

    Round steak

    0.2055.074

    Chuck roast

    0.1493.696

    Pork chops

    0.1873.465

    Bacon

    0.2544.407

    Ham

    0.2512.693

    Eggs, per dozen

    0.3731.933

    Sugar

    0.0580.683

    Footnotes:
    (1) Milk average prices were recorded per quart in 1913 and per gallon in 2013; the 1913 average prices have been converted to gallon equivalents. Milk was further characterized as "whole, fortified" in 2013.
    (2) This is the average price of butter in January 2012. Data for January 2013 were not available.

    Note: All average prices are per pound, unless otherwise noted. Source: U.S. Bureau of Labor Statistics.


    In conclusion, gold and silver are receiving huge demand all over the world due to the long term rise in price. These two precious metals are going to be the best sought after investment as confusion continues to enter the marketplace during the debasement of the U.S. dollar.

    Disclosure: I am long SLW.

    Tags: SLV, GLD, Commodities
    Oct 22 11:03 AM | Link | Comment!
  • A Gambler's Paradise: Speculator A La Carte

    Another day at the casino! Chips were making noise and paper cuts were bandaged after being struck by flying cards. "Say what?" said a player. "Kill pot, Can I get drink? (Dipsomaniacs standing by)". A recidivist buying in with red and white chips. "I see your holding a silver coin?". "1884 its for good luck" . I was watching the cat for hours. He bought in 8 times with reckless play. After looking at 2 ladies (QQ) I raised all-in. I flipped them up and my opponent continued to hide his. 10 of clubs, 7 of clubs, and 3 of hearts. He flipped over his Ace and 10 of clubs. Fourth street came with 4 of diamonds. Then tic-tock, sloooow mooootion, with margin style trembling hands, and zzzzzzzzz spectators. Jack of clubs ohhhhhhh nooooo!!!! I displayed a hundred dollar bill. I joked and asked him if his coin was for sale. He replied, " Sorry, you are going to have to get your own ! "

    The thought remained in my head. A metal that I felt was second to gold yet had an industrial edge. A well rounded precious metal with history. Silver has been in the marketplace for thousands of years. From the silver Athenian drachma coin in 580 B.C. up to the modern day U S. Morgan silver dollar, leading to SLV, PAAS, SLW, GG, GLD,, and so on.

    I'm long SLW and have not initiated any positions in any other mentioned stocks this week or the next.

    Disclosure: I am long SLW.

    Tags: SLV, GG, GLD, GOLD, PAAS, MGM, CZR, WYNN, MPEL
    Oct 17 12:26 PM | Link | Comment!
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