MGM Resorts International (MGM)

The sector is breaking down. There was some bad data that came out of China in their gambling numbers. There is one stock in the sector that is not too bad.

(Past Top Pick, May 10, 2018, Down 12%) The whole group's been hit lately, but he still likes it. It's at a good support level. There's a good future in gambling stocks.

Likes the gaming space. Showing signs of life. Very cheap stock in a sector that he really likes. (Analysts’ price target is $38.91)

(A Top Pick March 9/17, Up 43%) He bought this right after the tragic Vegas shooting last year when it dipped then recently sold it when he needed the money for another stock. Still likes it. They have a strong Vegas presence by owning nine casinos. Also have a long-term opportunity in Macao and will probably get a gambling license in Japan in 2019. Wynn Resorts is no longer a factor; Wynn is out of the picture.

(A Top Pick Jan 3/17. Up 15%.) He still likes the gaming sector a lot. This one has just chugged along nicely, not a big spike up or down. It is just working its way higher and it is still going to go higher.

This owns casino resorts in the US, mainly Las Vegas, as well as China and Dubai. They are expanding into other parts of the US as well as Asia. This had been doing very well, but had a bad quarter, and the stock dropped to the 200-day moving average. Looking at the macro picture with a recovery in the global economy, the properties in the US and China should continue to do well. Shares are trading about 10X enterprise value over EBITDA, which is a discount to its main competitors. Dividend yield of 1.71%. (Analysts’ price target is $33.)

He loves the sector. He usually talks about the bigger companies, and this is the one that always looks like it died on the operating table. However, for the 1^st time in a long time, it has actually made a move of its own without crazy volume. Barring some kind of hiccup, this stock is on its way to $40, which he thinks is attainable. It is acting quite well. (Analysts’ price target is $33.91.)

Chart shows this has recently developed an upward trend, and moved above a trading range. It is currently outperforming the market and has positive momentum. It looks fairly encouraging.

The resort space has been a little hurt and bottomed with the market, but bounced up pretty quickly. Really low volume. If it can break above the line, it has a pretty good chance of further upside. Technically he has a $33 target on this.

This is holding right at the 100 day moving average. On moving averages, when a stock comes down it bounces off of it several times, it is a clear uptrend and we are at that level right now. Be careful. If it drops below $21.50, that is an exit price. His expectation is $30 in the next 6 months.

You have a long base, then a lot of trading and then a breakout. It looks like it will go quite a bit higher. In case there is a correction in January, you may want to get into it slowly (in thirds).