Investing in the Casino Industry

I am now getting into stocks and investing, and was looking at an investing related site called MorningStar.com.

On the front page today, it had an article about "Which Casinos to Roll the Dice On", and it mentioned that they suggested investing in Harrahs Entertainment and the Station Casinos.

Then after thinking about it, I a realizing that wouldnt it be a very good idea to invest in casinos? They have an endless supply of money!

Wall Street was big on the casino bandwagon,then a few companies hiccuped and everyone ran away.
Harrahs and Stations,two stocks I own,are down quite a bit from their hi points.This means they are on sale.BUY them now,you won't regret it.
Two other companies are Mountaineer Racing,which owns a bunch of racesinos as well as The Horseshoe,and Empire Racing which will be the biggest operator in NY State when the dust settles.

Alright im totally going in on them.

What caused these stocks to get down so far??

Harrahs missed its numbers by a few cents and Wall Street jumped all over them for it.Check out thestreet.com or Motleyfool.com for their take o it.

I am now a proud owner of Harrhas stock.

I'll make sure to count cards on all their properties so your stock goes down! :laugh:

Congrats.Welcome to the Ownership Society.Be sure you reinvest your dividends.Compounded dividends are one of natures most powerful forces.
If you have any interest,check out Sharebuilder.com or MyStockFund.com.
You can invest as little as $10 at a time and they handle all your paperwork,reinvest your dividends and much more.

Please make sure you do proper due diligence on any investment. Research the stock fully and then make the investment. Shadroch may give you his opinion, but that is what it is. Shadroch gave you some good sites to do your research.

I see that your just starting, so I want you to make sure your fully aware of the risks. I put myself in a real hole years ago making rogue trades that I'm still paying back due to poor research.

Good luck

Well, I didnt invest like a huge amount of money, but its an amount that should be enough to make some money. I have been to multiple sites such as Morningstar.com and others that say companies like Harrahs and Station are at a low right now and should definitely be invested in, so I think ill be all good.

Couldn't agree more.
Always do your research.
Invest in companies you know and understand and products you know are superior to their competion.
Funny thing about stocks.
Macy's has a 25% off sale and people flock to the store to buy. A stock goes down 25%( meaning it's on sale for 25% off) and most people avoid it like its got crabs.

There is no way a newcomer can sonsistently beat the market. Almost any information you can find about a company is already reflected in the price of the stock. You have to either have inside information, or be able to interpret public information in a superior way. Good luck anyway.

Scott,
You couldn't be more wrong.A well rounded portfolio of dividend paying stocks is one of the best investments you can make.Reinvesting your dividends super-charges it even more.
But what do you mean by beating the market. You don't have to beat the market to make money. All you have to do is be in the market.
If you are talking day-trading,you may be right,but thats a far cry from investing long-term in solid stocks.

CASINO INDUSTRY: Harrah's continues expansion

Just a little tidbit for you Harrah's investors:

http://www.reviewjournal.com/lvrj_home/2006/Sep-01-Fri-2006/business/9385038.html (Archive copy)

-Sonny-

Some real figures to ponder.

If you had made a one-time $1,000 investment in Harrahs on 9-5-2000
and reinvested your dividends,today you'd have $2,307.30.
If you cashed out your dividends,you'd still have $2,141.30.

Had you started putting $100 a month into Harrahs on 9-5-2000,you would have invested $7600 and now had $11,466.30 cents.

Considering that the Bush presidency hasn't produced a bull market,those results are pretty damn good.Especially when you consider what banks are paying on savings accounts or CDs.

I am so pissed. Right when I was told to invest in Harrahs I did, but I didnt have that much money to invest! I could be rich by now! :laugh:

Since the day I invested about a week ago the stock has only gone up!

Don't get used to it. Your stock will rise and fall like the tides. Only each rise will be slightly higher than the previous hi-point.Over ten years,Harrahs(with reinvested dividends) should give you around a 10% return per year.