Saturday 26 September 2009

BUY OR SELL-Is Vegas recovery reality or mirage for MGM?

Gamblers are starting to head back to Las Vegas, helping shares of MGM Mirage (MGM.N) rise some 60 percent so far this month. But some investors question whether Sin City's recovery will be strong enough to absorb a coming wave of new resort capacity.

MGM's CityCenter, a multi-tower enclave of casinos, hotels, condominiums and shops being developed in partnership with Dubai World, will begin a phased opening on the Las Vegas Strip in December.

EARNINGS UNDERESTIMATED?

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