..

Gambling Stocks: The Good During This Recession

Written by:
Jagajeet Chiba
Published on:
Jul/01/2009
gambling

Alan Farley of the Street.com this week profiled four gambling stocks.

Bally Technologies he claimed was a winner despite some troubles at the start of the recent financial meltdown.

"Bally Technologies(BYI Quote) posted a double bottom between $12 and $13, and then moved higher with the broad market in March. It mounted the 200-day moving average in May, with the uptrend stalling out a few days later and giving way to an ascending triangle. It broke out of that pattern last week and is now trading at an eight-month high.

"Everything looks great on this stock, except for the weak accumulation, as noted on the on-balance volume (OBV) indicator. I'd still be a buyer with this bearish divergence but tighten up my stop loss, because the reversal odds are higher than normal. In any case, price shouldn't traded back under triangle support, currently near $27."

Boyd was another. 

As of 31 December 2008, the 15 wholly owned properties had 7,250 hotel rooms, 800K sq ft of casino space with 22,250 slot machines and 450 table games. Gaming revenue is 74% of total gross revenue.

In addition the corporation has a 50% share in the Borgata, the newest casino in Atlantic City with the highest gross revenue.

" Gaming(BYD Quote) dropped to a 10-year low in November, moved sideways for the next four months, and then broke out. The subsequent rally unfolded in a series of waves that culminated in early May with a vertical spike over the 200-day moving average. The uptrend then ran out of steam near $13, with the stock pulling lower for the last seven weeks."

Two other gambling stocks preferred by Farley: International Game Technology(IGT Quote) and Penn National Gaming(PENN Quote).

International Game Technology he says had its uptrend stall in May, just above the 200-day moving average. The stock then dropped into a rising channel that is still in place as we move into the third quarter.

"This is a bullish pattern that favors buying near support."

As for Penn National Gaming:

"Price has been consolidating at support for nearly three weeks. This narrow price action has established a base that could yield a rally up to channel resistance, which is currently around $34. By itself, that would offer a decent short-term trade. Even better, the longer-term pattern is carving out a cup and handle that might trigger a breakout into the upper $40s."

Jagajeet Chiba, Gambling911.com 

Gambling News

England's Answer to Conor McGregor: Paddy Pimblett

Paul vs. Pimblett and Lobov vs. McGregor Odds

Jake Paul and Paddy Pimblett are exchanging barbs, and now many are speculating over a potential boxing bout between the two blondies.  UFC charismatic star Pimblett is being billed as the United Kingdom's answer to Conor McGregor, but one with heart.  Ouch!

Syndicate