Monday, May 07, 2007

Market Recap

The Dow ended up (yet again) along with the S&P 500. Nasdaq finished down and Midcap and the Russell 2000 were weak. Aluminium companies outperformed today as aluminium producer Alcoa made a bid for Alcan. Toys, gambling and internet were the big losers.

Speaking of gambling, LVS and WYNN both look like good buys here. Infact WYNN is soaring in after hours after beating profit expectations. Wynn and Venetian(LVS) are the two top hotels in Vegas. They make more money than anyone and I don't think one can go wrong betting on them. People don't just go to the Venetian or Wynn for the gambling but also for the food and entertainment and the shopping. With a drop in the US Dollar, Vegas has become cheaper for foreigners. I met a lot of Europeans on my recent trip and they were saying how cheap it was to come out to Vegas. With a weak USD Vegas is going to florish and I want to be long the two top dogs - WYNN and LVS. At $80 a pop, LVS in particular looks to be a steal and the company is going to florish once its Singapore casino is in full swing.

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