IBD is getting "concerned" about casino stocks

[mystiky]

Looks like Investors Business Daily themselves are getting a but more careful about promoting "casino" stocks. With the crazy runups of companies like SNDS, MCRI, MIKN, CNTY and a few others - looks like a correction will start very soon.

This is from page B2 of the newest IBD (dated December 27)

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Want to double down on your casino stocks? A few casino operators broke out of bases last week to offer up secondary buy points.
The Leisure-Gaming/Equipment leaders helped boost the group to the top of IBD’s 197 industry groups. News such as MGM Mirage’s MGG buy of Mandalay Resort, and Las Vegas Sands’ LVS Dec. 15 IPO have kept the group in the limelight.
Penn National Gaming PENN , most recently featured in June 17’s New America, broke out of a five-week flat base Dec. 22 on heavy volume. The Pennsylvania-based operator of racetracks and casinos gapped up Nov. 4 after announcing its buy of riverboat casino firm Argosy Gaming.
Penn, a mainstay in the IBD 100 list for well over two months, has consistently found support near its 50-day average since June 2003.
Boyd Gaming BYD cleared a sixweek flat base Dec. 20 on brisk trade. The operator of Stardust and Fremont in Las Vegas, as well as casinos in five other states, vaulted 13% Oct. 27 after beating third-quarter profit views by a penny.
Boyd, which last month bought 13 acres of land next to the Stardust, was featured in The IBD 100 Nov. 8.
Both Penn and Boyd are in newhigh ground. Other casino stocks currently making the IBD 100 list include Monarch Casino & Resort MCRI and MGM Mirage.
But don’t rush to bet on the Leisure-Gaming group. It’s trended higher for a while, ranking No. 16 both two and six months ago. Many have been on the IBD 100 list for weeks, if not months, and may be well extended from their pivots.
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If you saw what happened to SNDS last week (a sort of sister of MCRI, as they only also operate one casino is RENO), I think many of these are due for a nice pullback in the 15% range.

[Websman]

If IBD is says sell, I say buy...

[mystiky]

The problem is, IBD has been "pimping" MCRI for the last 6-8 weeks. They are the main cause why that piece of chump has been moving from 20's to over 40. Especially with the fact that IBD ran a whole profile on their "great business" exactly one week ago to propel them from 36 - 44.

P.S. Even Mr. Market has sold...

[Websman]

Pimping is a proper term for what IBD does.

I'm not a big fan of IBD. They have a large herd of sheep that follow them...

I would rather follow Jim Cramer. He's much more entertaining.

[New-born baby]

What's wrong with IBD??

Webs,

What's wrong with IBD? You say that they have a large herd of sheep that follow them--and that's true; and that they pushed MCRI from 36 to 44--and that's true. It just seems to me that as long as you were out in front of the sheep, then you'd be in great shape to profit from the "herd" mentality. After all, who wouldn't want a large flock of sheep behind you pushing up the stock price after you'd jumped in? Hey, maybe IBD will get on the SIRI bandwagon soon, and you can enjoy shearing some of those sheep!