Moody's Investor
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by: Gene Koprowski.
Moody's Investors Service said Tuesday in its 2009 outlook that the gambling sector is changing and that casino operators are starting to capitalize on the "increased social acceptance" of gambling.


 As a result, the industry will this year and next year see a transition toward age groups that are more likely to gamble. These are "long-term" strategic trends that will shape the future of the industry, Moody's said.

For 2009, excellent management at leading firms will ensure that profitability, cash flow and liquidity are not hurt.
Moody's Senior Vice President Keith Foley said that casino operators have been pressured as some consumers tighten discretionary spending due to the housing slowdown, and other concerns. But, he noted, many analysts have predicted that a recovery will occur well before 2010. This is already being seen in gambling stocks which are swelling in value.



"The inspiring story here is the worldwide rebound from the low of November 20," writes Mark Lund, an economist with Stone Creek Investment Advisors, in his weekly research note. "Call it a bear market rally if you wish, but the story is still impressive – and we must remember that some of the best days for stock market investors happen during these rallies."
Gambling stocks were up on Tuesday during intra-day trading as follows:

•    WYNN
•    $55.34
•    5.81%
•    BYD
•    $6.17
•    6.75%
•    ASCA
•    $9.96
•    1.63%

Expect the gains to continue. "From November 21 to the end of 2008, the MSCI World Index and MSCI Emerging Markets Index gained 19.3% and 22.1% respectively," writes Lund. "The German DAX gained 14.0% across that stretch, and the FTSE 100 climbed 14.4%. The Sensex went up 17.2% and the Hang Seng 17.0%. The Shanghai Composite Index was the only notable loser, falling 8.4% in the period.13 The S&P 500 gained 20.04% from November 21 to
December 31."
 

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