Year-to-date gains: 215%
With a whopping 215% gain so far for 2013, Caesars Entertainment (CZR) is easily one of the year’s biggest winners — not just among stocks analysts hate, but even among stocks the analyst community loves.
The reason the professionals can’t stand the company isn’t a complicated one — the casino and gaming organization is neither profitable on a trailing basis, nor is it expected to be profitable in 2014. Revenue continues to be a struggle too.
Investors, however, just don’t care.
While the prod for the multi-month rally isn’t exactly well-defined, the advent of online-gambling has something to do with it. Though online poker in the U.S. is currently only legal in New Jersey — and technically not until November — Caesars is expected to be a dominant name in that arena.
The market may also be celebrating some finality on a nagging situation in Macau. In August, Caesars shed a golf course located in the world’s fastest-growing gambling hub and, though it took a loss on the sale, the company and shareholders are just glad to have it off the books. A massive refinancing seems to have been well-received too, quelling brewing bankruptcy chatter. All in all, the planets have lined up nicely for Caesars Entertainment.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.