Investing in the stock market is fun, but it's more fun to invest in something you enjoy. If you are an avid casino visitor, but like most gamblers, come home with empty pockets, you can turn your losses your wins. Invest in the stock of your favorite casinos. When you do this, you don't feel so bad about losing money to the casinos, since you're really just paying yourself.
Things You'll Need
- Brokerage account
- Internet access
Check out the company . You need to find the name of the company that owns the casino or casinos. Many companies own casinos with different names. For example, Harrah’s owns Bally’s, and MGM Mirage owns Circus Circus.
Find the symbol for the stock, look up the price and information on the casino. Many sites offer historical prices and valuable information on the business fundamentals and managements tea.
Investigate their profits. If the company has shown a high profit for the last ten years, chances are the casino will continue to operate. When you invest in casino stocks, you want to make sure the casinos don't carry too heavy a debt load. In times of high interest rates or tight money, a highly leveraged business loses profit to higher interest rates.
See if the company owns casinos in other locations besides Las Vegas or your location. If they have casinos at many different areas, it spreads the risk. When Katrina destroyed the casinos in New Orleans, the companies had other casinos around the country that continued to operate and bring in revenue.
Visit several locations owned by the company you want to buy, and check the quality of the casinos. If the facilities are all clean, have few malfunctioning machines, give good customer service and make your experience pleasant, chances are everyone feels the same way when they visit. Signs of poor maintenance, housekeeping and customer service at the casino group are a red flag to investigate further.
Check the price of the stock. Historically stock prices have a cycle. Most tend to fluctuate between their 52-month high and lows. If the price was at a new low for the previous 52 months be wary and investigate why the price dropped so precipitously. If, it is within range, select a price close to the low that you believe it will hit.
Open a brokerage account if you don't have one already. If you go online to open the account, familiarize yourself with the terminology before you invest in casino stock. Place a limit order for the stock at the low price you selected. A limit buy purchases the stock when the price drops down to the amount that you want to pay. If you want to guarantee you get the stock right away, use the market price.