In the mood to gamble? Place your bet on Caesar’s (CZR). (February 01, 2018)


I want to look at, not at Wynn ( NASDAQ: WYNN ) but I am going to start here. The stock is stabilizing right around the 50-day moving average; still kind of digesting the sexual allegations and all the ramifications that stem from that with respect to Steve Wynn. It looks to me like traders are seeing, about 170.00 is the fair value for this stock, waiting for more news.

As I have mentioned before, I could be wrong, I know there has been a little fallout as far as various conventions canceling and moving to new places and stuff like that. But I just don’t see that as being a long-term problem for Wynn Resorts ( NASDAQ: WYNN ). It might be a long-term problem for Steve Wynn. But when it gets right down to it is just a property, it is a casino. And I am not really aware of too many casinos over there that are the last bastion of conservationism and dignity and all that kind of stuff. There is a reason why they call it “Sin City”.

Don’t think I am making light of what has happened here. What I am saying is that this is not a long-lasting catalyst, to me anyway, that is going to keep this stock down. I mentioned it before, look at all the garbage that happened with Equifax ( NYSE: EFX ). Yes, your identity was stolen too; it is moving right back up. So all this stuff is kind of short-lived.

One thing that might be working in that same industry is Caesars ( NASDAQ: CZR ). The stock had been in consolidation here. This was really the top, this line has been there a while and then it finally broke out. This is a buy signal here if you didn’t get it in the squeeze. Then it breaks out on heavy volume, that is a good buy signal and then the stock just kind of stabilizes. We like the sideways stabilization because it just kind of builds, it is like a step, it is a solid step that the market can ultimately move higher from and that is really what we are seeing here. Since this breakout the stock has moved about $1.00, which on a stock that is now $14.00, 14.35, $1.00 is a pretty good move.

Here is my suggestion: The company doesn’t report earnings until the middle of February, that is 12-days from now. I would keep watching this stock. What you do over earnings, that is kind of a different analysis altogether. But it looks to me like this stock is running into earnings. It looks like there is starting to be some enthusiasm for this stock. So if you are interested in this stock go ahead and take some. Go ahead and buy some stock now but then just keep a stop maybe a little bit under 14.00, this is just a trade; keep a stop a little under 14.00, so you are risking about 40 cents or so if you are buying this right now. And then see how this plays out before earnings. It is not anything that I would want to hold over earnings but with there being 12-days between now and earnings I guarantee you this: When the company reports earnings the stock is not going to be at 14.35.

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