One Page Barron's Summary

Apr. 09, 2006 5:37 AM ETDIS, KRI, ED, LVS, GS, GCI, BBBY, MGM, WYNN, JACK, MNIQQ, VSPC, KCE, HET
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Here's a one page summary of this weekend's (April 8) Barron's (paid sub. req.), noting stocks to watch for Monday morning when the market opens and brief comments on the Barron's articles. Note: clicking on a stock ticker pulls up opinion, analysis and a quote for that stock.

Lead Article: Minting Money, The Goldman Sachs Way
by Michael Santoli

  • Highlighted companies: Goldman Sachs Group, Inc. (GS)

  • Thesis: Goldman Sachs makes lots of money from trading for its own accounts. One of GS's key services is serving as a counterparty to derivatives contracts and thereby collecting the "liquidity premium" that market makers earn. Recent performance has lead to a sharp spike in the stock price. The stock at 161 is trading at historical highs, both on its own and relative to the rest of the capital markets sector. Michael Santoli feels the shares would be a good buy in the 140s.

  • Quick comment:The streetTRACKS KBW Capital Markets ETF (KCE) is a good way to get diverse exposure to this sector.

  • Barron's Feature: A Tempting Wager
    by Neil A. Martin
    • Highlighted companies: Harrah's Entertainment (HET), MGM Mirage (NYSE: MGM), Las Vegas Sands Corp (LVS), Wynn Resorts Ltd. (WYNN)

  • Thesis: Harrah's has earnings momentum, a development pipeline and is working well on integrating of its acquisition of Caesars Entertainment. The purchase of Caesars has given Harrah's a full stable a brands work with. Harrah's has wide geographic diversity in the US and isstarting to expand overseas. The stock is currently trading at a discount to other companies in the gambling sector

  • Quick comments: Harrah's player's club program is considered the best in the industry, and provides a key competitive advantage. Interesting that Jim Cramer has also been recommending these stocks on Mad Money.

  • Barron's Feature: Jack's Juicy

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