Casino Stocks on the rise

Could Casino Stocks take you to the next level of stock investment during this economic down turn. I tend to think economic downturns are good for casino stock as they are undervalued during these times but are extremely resilient.

Casino stocks were trading higher Tuesday, after MGM Mirage’s Las Vegas results fared better than the bloodletting that many expected and the company announces financing commitments for its newest project.

The entire gambling sector has been battered this year on fears that the economic slowdown is set to ravage profits at casino operators, especially those with a heavy focus in Las Vegas, such as MGM.

So far this year, results at MGM’s Vegas casino are down but still manageable. Visitors continue to flock to the city but only at lower room rates. And once there, guests tend to be spending less.

In the second quarter, MGM’s revenue per available room at its Las Vegas Strip casinos fell 5% from a year ago as rates fell, but occupancy remained high at 97% (off from 98% last year).

The company’s Bellagio Casino — which some consider Vegas’ most luxurious destination — reported its highest-ever quarterly hotel revenue.