Sunday, August 10, 2008

Time to hit the casino...

While I don't consider investing in the stock market to be the same as gambling, there are certainly times when investors can "roll the dice" and take a chance on a break out. I believe the easiest way to play "casino" in this market is with earnings reports (either you beat expectations or you miss/guide in line-they're the same to wall street). With that said, I plan to take a little chance and put some cash down on MDR tomorrow.



The graph is terrible and is signaling "the end is nigh" for the global infra plays, so I will make the small bet that MDR reassures the street about their future earnings prospects. Does MDR beat the .78 cents consensus? I don't know, but looking at their exposure to oil, coal, and infra, coupled with a pessimistic street view (indicated by the graph) I believe conditions are ripe for a slight bounce. Viva Las Vegas.

Position: Long MDR

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