Wednesday, January 4, 2012

MGM International to Double In 2012

 The Majestic MGM City Center in Los Angeles
 The Front Entrance View of City Center in Las Vegas

Well it has been more than 7 months since my last analysis on March, 2011. Well, I am back now, and this time, I am going to analyze MGM International. The title for this post may be a little too much as, I believe, it is indeed very tough for MGM to double in price for 2012. The title is indeed to catch your attention for it. However, I am determine to speculate MGM stock based on the range trading from $9 to $16.

Based on the long term chart, MGM is currently showing a side way trend with price ranging from the resistance at $16 and the support $9. As can be seen from the chart above, MGM has tried 3 attempt to break the upward resistance of $16 but failed miserably. For those who are in this for a long term and expect price to double or quadruple, I will suggest to go in if it manage to break the resistance $16 level and the $16 level became a support. Based on the above chart, for the short term, I am expecting MGM to retest the resistance at $16. Going in at current price of around $10-$11, one is expecting to make more than 40% it can climb up and test the resistance of $16. Both MACD and Stochastic indicators do not really show any major meaning for MGM next movement.

 As per the short term chart indication, it looks very positive. I am particularly very interested in the candlestick formation as per the red circle above. For me, I name it "staircase" pattern which is very strong upward indication in the short run. I have seen many candlestick pattern such as that above and 90% of the time, the stocks will continue its upward movement.

Based on the MACD indication, it does indicates that MGM will continue its upward move as it is currently still way below the overbought level.

As per the stochastic indicator, it does show a little negative view as it touches the 80% line above which indicates a slight overbought situation. However, as long as the blue line did not cross below the red line and both line moving downward, it is still an upward trend for me.

As for the volume indication during the last 4 days, I particularly like the strong upward push in high volume as per shown on the arrow in the above chart, which is then follow by 3 low volume indication. It means that the upward push is currently consolidating with low volume for 3 days, before another upward push with strong volume to prevail.

 Extract from CNBC

As from the Sales Revenue for MGM for the last quarter, I am very please as it does show a big jump from $1.8 billion to $2.2 billion. It looks superbly good to me. If MGM can continue to show Sales Revenue increased as per the last quarter, I am very convince that MGM stock price will not only double but quadruple. Even though MGM still shown a negative 25 cents per share, I am convince that it will break even or turn to profit, if the magnificent performance for MGM to continue.

For the market news on this stock, I have few articles and analyst upgrade for this stock. This is also one of the reason which prompted me to go and bought around 70% of my cash holding in this stock. Most of the news indicated that MGM is currently turning around with substantial growth in revenue for the coming months. MGM largest investment in City Center Las Vegas has also started to bear fruit with increasing RevPAR ("Revenue Per Available Room") improve tremendously. Other analyst pointed that the Jewel of the Crown business in Macau is also performing very well and also manage to increase its revenue percentage as compared with competitors such as LVS, Melco Crown, and Wynn. It means that it is actually stealing more and more customer from its competitors which is a very positive indication for MGM stocks.

I have bought MGM International at an average price of around $10.70. I am expecting MGM to move at least to $14 before it starts to consolidate and then we should decide again based on the chart at the point in time. 

For those who want to follow me and bet on this stock. You can go in at any price below $11 for a short term gain of around 25% at least.

Although I am not from any licensed brokerage firm or famous analyst in the top financial firms, but I am confidence that I will make profit this time on MGM. I did not receive a single cents or goodies from anybody, unlike those licensed brokerage or analyst out there, I am analyzing this stock MGM International purely based on my fate and believe on my many years of investing in the ever turbulence stock market world.

Follow as you wish. Last but not least, Happy New Year and good luck on trading. May you double your profit for 2012. All the best!!!!!!

1 comment:

  1. If you think my analysis on MGM is not accurate, kindly give your comment!


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