MGM is set to benefit from significant margin expansion and an improved balance sheet.
Wynn has strong growth prospects in China, and Las Vegas is starting to grow again.
Sands is undervalued relative to its strong growth prospects in Asia and competitive position.
Melco is undervalued relative to its strong prospects in the attractive China casino industry.
Penn faces competition in six of its seven largest markets, which generate more than 60% of sales.
Boyd is heavily focused on the unattractive Las Vegas and Atlantic City casino markets.
Unlike Las Vegas casinos, Ameristar's casinos are dependent on its regional economies.
Increased competition and high financial leverage hamper Ameristar's outlook.
Melco should feel near-term pressures, but we like its long-term prospects.
Penn is still highly leveraged to its Charles Town property, which accounts for about 20% of sales and 23% of profits. Slot legislation in Maryland would probably deal a significant blow to Penn's results.Smoking bans in Illinois led to sales declines in excess of 20% in the firm's Chicagoland