NYSE:MGM
$10.82
(2/9 1:48PM)
+0.8%
| Open | $11.07 |
Mkt Cap | $4.7 Billion |
| High | $11.07 |
52Wk High | $14.25 |
| Low | $10.61 |
52Wk Low | $1.81 |
| Volume | 14.1 Million |
Avg Vol 10D | 25.4 Million |
Ockham's Rating/Recommendation Summary
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MGM Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, MGM the high and low end of the Price to Sales per share ratios are 2.44x and 1.05x respectively.
Notice that MGM's current Price to Sales per share ratio is 0.76x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $10.94, MGM is 57% below where we would expect to see it. This will beneficially factor into our final analysis of MGM as it is not often that this stock sinks to these levels.
MGM Cash Earnings
MGM is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at MGM, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time.
Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.
MGM Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for MGM to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now MGM gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on MGM at this time.
RazorWire has Detected News About MGM on Zero Hedge
MGM Mirage, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Zero Hedge.
The crowd at The Motley Fool does not like MGM and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on MGM. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that MGM Mirage, Incorporated has been talked about more than normal recently.
“… RECENT RATING ACTIONSALLIANT TECHSYSTEMS INC (ATK)MGM MIRAGE (MGM)NCR CORP (NCR)BEAZER HOMES USA INC (BZH)TYSON FOODS INC (TSN)PENN NATIONAL GAMING INC (PENN)AMERICAN AXLE & ... …”
MGM Mirage, Incorporated News is Being Covered Right Now on Closing Bell
The latest news from Closing Bell on MGM is available through Ockham's news analytics platform RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, MGM Mirage, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on MGM because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MGM Mirage, Incorporated underperforming.
“… Casino giants MGM m ira ge is asking investors for final approval to extend $5. 5 billion in debt. Regulators object to borgat. . …”
Notice a Discussion Covering MGM Appeared Recently in the Financial News
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on MGM from Zero Hedge.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MGM has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on MGM. The crowd at The Motley Fool does not like MGM and believes that it will Underperform.
“… In the names of the HY index, today's biggest percentage movers were MGM Mirage Inc (+2. 89%), McClatchy Co. /The (+2. 73%), and K Hovnanian Enterprises, Inc. (+2. …”
News on MGM From the Pundits on Squawk Box
The latest news from Squawk Box on MGM is available through Ockham's news analytics platform RazorWire.
The Ockham valuation currently has a Fairly Valued stance on MGM because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MGM Mirage, Incorporated underperforming. In comparison to the other stocks that we follow, MGM Mirage, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… And I think on the conference call, the music to my ears was that he wasn't going to buy MGM. He wasn't going to buy miramax. …”
MGM Gets Mentioned in the Financial Media
As always, the latest news on MGM is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MGM Mirage, Incorporated underperforming. The Ockham valuation currently has a Fairly Valued stance on MGM because it trades within the price range that we would expect given current market conditions and fundamentals. In comparison to the other stocks that we follow, MGM Mirage, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… "the wall street journal" reporting MGM-mirage is looking to sell its 50% stake in the borgata. So rather than deal with the increased regulate or scrutneat gaming giant would ... …”
Squawk On The Street Has News on MGM
The latest news on Squawk On The Street in regards to MGM came through on RazorWire recently.
MGM Mirage, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of MGM, it is getting significantly more attention in recent news coverage than we are used to seeing. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… MGM mirage another one to keep an eye on. The company is seeking to divest its stake in the casino out in atlantic city. Let's get up to the nasdaq now with bertha coombs. > > …”
Stay Current on MGM's News on Squawk On The Street
The latest news on Squawk On The Street in regards to MGM came through on RazorWire recently.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Ranking all stocks in terms of news coverage offers some interesting data. In the case of MGM, it is getting significantly more attention in recent news coverage than we are used to seeing. MGM Mirage, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… MGM mirage meantime another mover today. The company is seeking to divest its stake in the casino in atlantic city. Let's go to bertha coombs up at the nasdaq. > > …”
MGM Gets Mentioned in the Financial Media
News has broken via the television and viral blogs regarding MGM, so investors should take an interest in learning what was said.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that MGM Mirage, Incorporated has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on MGM. The crowd at The Motley Fool does not like MGM and believes that it will Underperform.
“… Wynn was down 5% and las vegas sands down 4% and MGM down 4. Back to you. > > the dollar at a four-month high taking a bite out of oil. …”
Shorting and MGM Mirage, Incorporated Mentioned Together on Fast Money
Short sellers will want to take a look at the MGM discussion from Fast Money recently.
The latest news on MGM has created quite a stir as the stock is trading $1.19 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; MGM has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. MGM Mirage, Incorporated received our Fairly Valued rating in our latest report because the price at the time of the report of $10.60 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes MGM less attractive.
“… 20 yesterday to buy more expecting at MGM to continue on higher highs. > > why would one go out to 2011? It seems like a lifetime away. > > buying time. …”
MGM in Developing Markets on Fast Money
For growth, there is nowhere growing more rapidly than emerging markets. Recently, Fast Money talked about emerging markets and their impact on MGM Mirage, Incorporated.
MGM Mirage, Incorporated received our Fairly Valued rating in our latest report because the price at the time of the report of $10.60 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes MGM less attractive. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; MGM has received less coverage from the financial media in business television and blogs. The latest news on MGM has created quite a stir as the stock is trading $1.19 higher in today's session.
“… watching MGM rallies 9% after being upgraded to a buy over at goldman sachs. Goldman calling ate high risk, high reward call. . …”