We shorted MGM in our Real Time Alerts yesterday at $9.95 a share. MGM's TRADE and TREND resistance is at $10.29 and $10.76, respectively. We think the stock has room for further downside; Hedgeye Gaming, Lodging and Leisure Sector Head Todd Jordan notes that MGM faces a difficult macroeconomic environment combined with a decline in slot demand and volumes.
MGM is one of the gaming names with the most exposure to Vegas and these days, the Strip is hurting while Macau is flourishing. We’re below the Street on Q4 earnings and 2013.