Best Casino Stocks To Own For 2014

When one thinks of gambling "sin stocks," one ordinarily thinks about large casino stocks. But casino resorts are what they are in part due to the availability of gambling related machines and hardware. I am going to look at a few of the leading companies in that industry today.

WMS Industries - Independence at an end

We are likely approaching the last time I will be reporting on WMS Industries (WMS), the former Williams Electronics. It has agreed to be acquired by Scientific Games (SGMS) for $26 per share, plus the assumption of WMS' modest debt. The deal is scheduled to close by the end of this year. On its own, WMS is having a dismal fiscal year, which ends June 30. For this year, the company, no doubt with distracted management, earnings are likely to end at about $0.90 per share, compared with fiscal 2012's $1.31 per share. Helping drive earnings lower are additional measures the company is taking to drive up revenues, which remain well below last decade's peak. WMS' stock has flat lined the past few months at within three percent of the $26 price. There is virtually no upside, though there is downside if the deal collapses. I see no reason to get invested in WMS.

Best Casino Stocks To Own For 2014: Modena Resources Ltd (MDA.AX)

Sprint Energy Limited engages in the exploration and production of oil and gas properties in the United States. It primarily owns interests in various onshore leases located on Padre Island, and in Hidalgo and Starr counties. The company was formerly known as Modena Resources Limited and changed its name to Sprint Energy Limited in December 2011. Sprint Energy Limited is based in St Kilda, Australia.

Best Casino Stocks To Own For 2014: LTX-Credence Corporation(LTXC)

LTX-Credence Corporation designs, manufactures, markets, and services automated test equipment solutions for the wireless, computing, automotive, and consumer markets. The company?s product portfolio includes Diamond platform, a package for testing microcontrollers and cost sensitive consumer devices; X-Series platform that offers configurations for optimal testing of ASSP and ASIC, power, automotive, mixed signal, and RF applications; and ASL platform, which is used for testing linear, low-end mixed signal, precision analog, and power management devices. The company also provides various services, including installation and maintenance of test systems, servicing of spare parts, parts and labor warranties on test systems, and training on the maintenance and operation of test systems. LTX-Credence Corporation sells its products through direct sales organization and distributors in the United States, Taiwan, China, Japan, Korea, and southeast Asia. The company was founded i n 1976 and is headquartered in Norwood, Massachusetts.

Advisors' Opinion:

• [By Arohan]

  LTX-Credence is a semiconductor test equipment manufacturer and servicer serving wireless, computing, automotive and consumer markets. The stock can be purchased at a trailing PE ratio of 5.46. With a market value of $322 million and a cash holding of $162.62 million and no debt, LTXC’s balance sheet is plenty strong. The next few quarters are uncertain as their chip maker customers are forecasting weak demand that may result in losses for the next couple of quarters. At this time, I believe that the stock already reflects the projected weakness and as the industry rebounds the company will be back on its gro wth path.

• [By Putnam]  

  How can you not like a stock that is growing their earnings by nearly 60% and yet trades at a P/E of only 9x. Sure the growth rate for LTX-Credence (LTXC: 5.72 0.00%) will drop to only 33% in 2011, but at 6x consensus 2011 estimates this small cap stock is incredibly cheap.

10 Best Small Cap Stocks To Buy For 2014: BlackRock Municipal Income Quality Trust (BYM)

BlackRock Insured Municipal Income Trust (the Trust) is a diversified, closed-end management investment company. The Trust�� investment objective is to provide high current income exempt from regular federal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.

The Trust invests in sectors, such as transportation, water and sewer, power, education and hospitals. BlackRock Advisors, LLC, a wholly owned subsidiary of BlackRock, Inc., serves as the Trust�� investment advisor. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Trust.