3 Reasons to Sell MGM Resorts
Jun 12th 2013 5:52PM
Updated Jun 12th 2013 6:55PM
MGM Resorts has done well on the stock market over the past three years, but there are reasons to be wary of the stock going forward. A high debt level, slow growth markets, and more competition in Las Vegas are three of the reasons gaming analyst Travis Hoium highlights in the video below.
When MGM Resorts began constructing the CityCenter in Las Vegas, it was an audacious plan that seemed like a sure bet with its prime location in the center of The Strip. But Las Vegas hit a rough patch during the Great Recession and has yet to fully recover, so MGM has since turned its attention to a new market in Macau. This Chinese gaming enclave now holds the key to the company's future, and a new resort on Cotai may relieve the company from crushing debt. For expert analysis on whether this former high-flying stock can regain its form on the back of a growing presence in Asia, you're invited to check out The Motley Fool's new premium report on MGM Resorts. Simply click here now to claim your copy today.
The article 3 Reasons to Sell MGM Resorts originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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