NYSE : MGM Resorts International Reaching Target Price

MGM Resort International
Wow wow what a day Friday was! The gaming stocks rallied yet again. This time round coming from the good news of the Nevada revenue growth. Naturally, MGM with their number of businesses in the Las Vegas Strip had the best response to it, rallying to close at US$12.67.


The after market trading push this stock further up to US$13.56!


I've got to be honest here though, for those of you who did not manage to take profit on Friday, you'll most probably take alot more than me on Monday. I sold the remaining of my MGM shares at US$12.68 for a good profit of about 18.5%.


Sell MGM Resorts International at US$12.68

Risk Reduction Action

A quick summary of things, this morning Hang Seng Index has touched 23,000 points. Such a whole number is usually a strong resistance level and true enough the index ended slightly lower at 22,880 points today.


Dow Jones Industrial has also almost touched the 11,000 strong resistance mark. As written in my previous post on indices I think the market might be due for some retracement. Of course there is a chance that I may be wrong and the market will rally to a new level but I would like to keep some profit and minimize the risk now.


I've sold off half my holdings of MGM Resorts @ US$11.86 today. Not going to hold till my true target price. If the market does tank in the next few days, we'll have opportunity to buy back what we sold today.


Remember, keep your profits! Don't let the market take it back from you!


Sell half portfolio of MGM Resorts International @ US$11.86.

Market Update and MGM

We're at the point of time now which I feel the market has probably gone up a little too much and is due for a slight retracement. Let's take a close look at both the Dow Jones Industrial and Hang Seng Index to have a better feel of things to come.

Dow Jones Industrial Index

The US market has completed a spectacular September month, rallying from approximately 10,000 points to the current level of 10,800. In this month it also forms 3 higher highs. Although it has rallied quite a fair bit, I believe there might be still a little bit more of upside possibility. Strong resistance should come at approximately near the 11,000 mark.

Hang Seng Index

Switching over to the Hang Seng Index (which is usually the key measurement for Asian markets for me), it has already reach a resistance level at 22,400. Even if it goes up, the next strong resistance level will be at approx 22,550 level and I don't really feel it makes much sense to gamble on such a small gain.

Looking at both US and asian market, it seems a good time now to sit back, relax and wait for a retracement before entering the market again. Most of the good counters seems to be overly bought and doesn't offer any value now. At the moment of me typing this post, the general asian market has tanked today and Moody's looking at the possibility of downgrading Spain's rating. Doesn't look very bright for Europe side either.

MGM Resorts International

Wow wow this counter flew yesterday, moving up a whooping 5.44%. At one point during the day, it was up more than 7%. This comes amidst news that MGM Resorts is seeking to list her Macau casinos. Read more about it from MarketWatch here. Although this is not really new news, I'm happy that it still has enough effect on this counter.

NYSE : MGM Resort International Inc

NYSE : MGM Resort International Inc
It's a real pity we cut stop MGM the last round when it drop. As I said before, I'm very bullish about the gaming industry and it is for all to see that LVS, SJM and Genting went up alot in the recent months. MGM is one of the most heavily shorted counters in NYSE. Although MGM's performance is nowhere near the rest, I strongly believe it's at a very attractive price still and there is plenty of room to go up.


Recent few days performance has outperform LVS (which I feel isn't alot of upside potential now). MGM has broken it's recent downward trendline yesterday with a strong 8% gain. With this gain, it also forms a higher high and I believe this counter should start a gentle uptrend soon.


Entry price : US$10.73
Cut loss price : US$8.92
Target price : Approx US$12.50 (there is potential to be more)

NYSE : MGM Resort International Inc

With regards to my MGM Resort International post earlier, yesterday night it seems MGM have dropped to our cut loss target price.


You may have sold of your MGM yesterday night near market close at $9.14. Unfortunately this was one trade which didn't turn out good. I'm still keen in looking to enter this counter at another better entry point.


As of now, Dow Jones Industrial has closed below the 10,000 support level. It seems the market has taken a bad turn and might tank further. It is advisable to sit out this period and monitor for any turn in events. I do not believe it's worth shorting the market now as companies seems to be performing well.

NYSE : MGM Resort International Inc

MGM Resorts International Inc

MGM Resorts International Inc has just recently posted their second quarter results which was bad. The company lost $883 million, or $2 a share. However, this was due mainly to various charges, which if removed, the company would have lost just 35 cents a share. This information was published from MarketWatch. Base on this, I felt that the company's share is still worth taking a look at and I'm expecting a much improved result for their 3rd quarter.

From my technical chart analysis, the timing looks good to enter pretty soon at a price of $9.90.

Entry price : $9.90

Cut loss price : $9.20

Target price : Around $12 (will post when I feel it's time to sell)