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 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!!!!!!