MGM - MGM Mirage

[MGM] MGM Mirage - Hot Stocks to Buy Entry Price $7.90

• Risk level: 6
• Profit potential: 9
• Price Target 6 months: $14 - $16
• Price Target 12 months: $28 - $30
• We expect MGM to outperform in the near and long term

MGM Mirage, through its subsidiaries, owns and operates casino resorts in the United States. The company’s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club.

We have selected MGM Mirage as a hot stock to buy canidate due to the potential profit it represents in both the short and long term. With the recent turnaround in the overall stock market and gaming market, MGM is poised for continued price increase. The following highlights are reasons we have selected MGM Mirage as a hot stocks to buy stock.

• MGM Mirage will eventually see the CityCenter project come to a completion by December 2009 according to the latest Associated Press report “MGM Mirage and Dubai World each agreed to fund their remaining payments for CityCenter with letters of credit, and the lenders agreed to immediately fund $1.8 billion to finish the project, rather than wait until each partner had fully paid its share. The company said CityCenter is now on track to be open by December 2009, with the Harmon Hotel & Spa opening in 2010.”
• It looks like the bankruptcy rumors have subsided with the announcement of the CityCenter agreement with Dubai.
• According to Yahoo’s insider transaction report there has not been any recent insider selling into the recent stock runup from a low of $1.88 to it’s current price of $7.96.
• We expect increased travel to Las Vegas as an alternative option due to the recent swine flu scare. This is good for MGM and all other gaming casinos.
• Earnings on May 4th should be inline or better as estimates have been lowered.

Hot Stocks to Buy recommends taking a small holding in MGM stock at it’s current price.  The profit potential of the stock is great and the risk is moderate.  Overall MGM looks like a hot buy anywhere beloww $10.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.