MGM’s inclusion to the S&P 500 should give the stock a small bump in valuation next week. That’s because investors who are purchasing shares of mutual funds that mirror the 500 are essentially buying slivers of MGM without perhaps even knowing it.<\/p>\n
\nMGM CEO Jim Murren called his company’s addition to the index a “significant milestone,” and that he is “honored to join the esteemed companies that compromise the S&P 500.”<\/strong><\/p>\n<\/blockquote>\nAll 500 stocks are large companies that are traded on either the New York Stock Exchange or NASDAQ. A few notables include Berkshire Hathaway, Google (Alphabet), Facebook, and Microsoft.<\/p>\n
Since 1970, the S&P 500 has delivered an annual return (including dividends) of over 14 percent. Its best year came in 1995, up almost 38 percent, while its worst came in 2008 when it dropped 37 percent on the heels of the Great Recession.<\/p>\n
Buying Power<\/b><\/h2>\n
When stocks are added to the S&P, they average about a three percent gain in their first week of trading. After one month, companies typically see a seven percent increase.<\/p>\n
That means MGM should have a much higher valuation come September than it did last week. With Japan soon taking bids on its forthcoming integrated casino resorts, that plays well for Murren.<\/p>\n
Two gambling licenses are expected to be up for grabs when Japan’s legislature settles on its gambling regulations. MGM, along with Las Vegas Sands, Wynn Resorts, Hard Rock, Caesars, and multiple other companies, are readying to bid on the properties.<\/p>\n
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Las Vegas Sands and MGM<\/a> are the presumptive frontrunners, with the firms hinting that they’re prepared to spend $10 billion each. Both companies have vast experience in Asia gambling markets, owning casinos in Macau, Hainan, and Singapore.<\/p>\n<\/div>\nForecasts on what the liberalized gambling could generate each year upon maturation vary wildly. Analysts have theorized that the casino recipients could combined make anywhere from $5 billion to $25 billion annually.<\/p>\n","protected":false},"excerpt":{"rendered":"
MGM Resorts International will become the newest member of the revered S&P 500 prior to the open of trading on Wednesday, July 26. The stock’s addition to the Standard and Poor’s index will presumably increase trading activity on the Nevada-based casino and hospitality conglomerate. The S&P 500 is a preferred US index, one that rivals […]<\/p>\n","protected":false},"author":42,"featured_media":55032,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18],"tags":[],"acf":[],"yoast_head":"\n
MGM Resorts Added to S&P 500, Company Should Should Increase<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n