Cinderella Story Up 52% In 8 Weeks
Back in March I told you about a stock with huge potential. I said it could make you 4x or 5x your money in the next five years. And so far, it’s looking great.
Is there still time to jump aboard? I’ll get to that in a minute…
If you remember, I had just got back from watching the NCAA college basketball tournament in Las Vegas.
I’d been talking first hand with cab drivers, black jack dealers, and other hotel staff. They all said the same thing. Business was improving.
The information from the front lines painted a great picture. People are starting to travel and spend money in Las Vegas again.
I was convinced hotel and casino profits were recovering. And those profits would drive stocks higher.
The Cinderella story I told you about is Boyd Gaming (BYD)…
On March 23rd, you could have bought all the stock you wanted for around $9.22.
It’s gone nearly straight up since then.
Today BYD hit a high $14.07. That’s a 52% gain in just 8 weeks!
And I think BYD is just getting warmed up. The potential for more gains is outstanding.
BYD operates 15 casinos throughout the US and has a 50% stake in the Borgata in Atlantic City.
From 2007 to March of ’09, BYD crashed from $54 to under $3. I high-lighted a few of the issues that contributed to the fall. I knew if management could navigate through these muddy waters, there’s a good chance the stock could return to its former glory.
It looks like management is doing a great job.
Last week BYD reported Q1 earnings of $0.10 per share. Better than the $0.07 analysts were expecting. And a huge improvement over the $0.16 per share loss they reported in Q1 of last year.
It‘s the best earnings have looked in the last few years.
And management expects improvements to continue. They’ve cut costs and are now much leaner. Now, moderate revenue gains can drive substantial earnings growth. And that could lead to big stock gains.
The return to positive earnings growth has caught at least one analyst’s attention.
Argus upgraded the stock from sell to buy today. But most analysts still haven’t changed their rating. Other analysts are behind the times since downgrading BYD back in ’08 and early ’09.
Clearly the company is in a much better position today.
The Argus upgrade is the first of many I’m expecting. BYD should see a lot of interest as more analysts jump on the bandwagon.
Congratulations to all of you who followed my recommendation. You’re up 52% in the last eight weeks. If you missed out, don’t worry. I think BYD’s still a great buy at its current price. Grab some shares of BYD soon. As more analysts upgrade the stock and the company performs, I’m expecting the price to move even higher.
Category: Stocks
