Short
Ceasars Entertainment Corp (CZR)
Friday, October 18, 2013
Company Symbol Industry Rating YTD % Gain
For more free, daily swing-trading ideas and set-ups, check out SoTM's Trade of the Day hosted on Marketfy. Stock Rating:
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest. Caesars Entertainment Corp - Last 30 Days
Caesars Entertainment Corp - Last 3 Months
Caesars Entertainment Corp - Last 6 Months
Looking for Additional Guidance in the Markets? The Daily Decision: A disciplined approach to managing stock market risk on a daily basis. Forget the fast money and the latest, greatest option trade. Investors first need is a strategy to keep them "in" the stock market during bull markets and on the sidelines (or short) during bear markets. The Daily Decision system was up 30.3% in 2012, is up more than 30% in 2013, and the system sports an average compound rate of return of more than 30% per year. The Insiders Portfolio: A truly unique approach to stock picking. This portfolio buys what those who know their company's best are buying - but ONLY when they are buying heavily. The Insiders is up over 40% in 2013 and has nearly doubled the S&P 500 since 2009. The IRA/401K Advisor: Stop ignoring your 401K! Long-term oriented service designed for IRAs and 401Ks - The IRA-401K Advisor. This portfolio strives to keep retirement accounts positioned on the right side of the markets, and at an extremely low price, it is a service you really can't afford not to use while planning for retirement. The Top 5 Portfolio: A stock portfolio that keeps things simple, focusing on SotM's five favorite positions. This concentrated stock portfolio employs a rigorous custom stock selection approach to identify market leaders. Risk management strategies are built in to every position. All StateoftheMarkets.com Premium Services include a 30-day money-back guarantee.
The Trade:
Caesars Entertainment Corp presents a solid short opportunity this morning. The stock recently fell roughly 23% from Monday's close to Tuesday's intraday lows on an announcement that the company was issuing $1 billion of first lien bonds at an 8% yield, on top of $1.15 of second lien bonds at an 11% yield. Wall St. doesn't like companies raising money, and though CZR was able to recover intraday losses on Tuesday, the damage was still done by the big gap down.
The stock tried to recover through the week, and posted an encouraging session on Wednesday. However, Thursday came and went with a lackluster session for CZR, and now on Friday it is becoming clear that the stock is going to break down. On top of CZR's recent price action misfortune, it doesn't help that the Casinos & Gaming stock is up +190.31% YTD as of yesterday's close, which is absurd.
CZR is currently sitting at its only short-term support, right around $19.50. Should the stock break down below this level (which it is currently doing as I type this report), the next stop given its current downward trajectory is intermediate-term support south of $18.
Given investors' reaction to the issuance of bonds, horrible short-term price action, a ludicrous YTD % gain, and a technical picture that is breaking down, CZR is a good short play at current prices back down to the $17.50 area. Should the stock make an unlikely turn-around today and close above $20.88, it would be a good idea to cover. Otherwise, CZR is a compelling short this morning.
When to Enter the Trade:
Short at the current price (~$19.53).
When to Exit the Trade:
At a close above $20.88 (Cover) / A close below $17.50 (Profit-Taking)
Company Profile:
Caesars Entertainment Corporation provides casino entertainment services. Its casino entertainment facilities include land-based casinos, riverboat or dockside casinos, managed casinos, combination greyhound racetrack and casino, combination thoroughbred racetrack and casino, and harness racetrack and casino, hotel and convention space, restaurants, and non-gaming entertainment facilities. Its resorts operate primarily under the Harrah's, Caesars and Horseshoe brand names. It also owns the World Series of Poker and the London Clubs International family of casinos.
Disclosure:
At the time of publication the editor and affiliated companies own the following positions:
None
StateoftheMarkets.com offers actionable portfolio services designed to help you manage your investment portfolio.
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
