BARRONS BOMB?

Barrons - bearish on MGM WYNN LVS LLY and ADM and bullish on Japan (EWJ JOF TM NMR) and BCS.

Not surprisingly, they are bearish on the casinos- MGM is +55%, WYNN+43% and LVS +33% and that is after a stellar 2006 where they increased +56%, +71% and +127% respectively.

Why is Barrons bearish-

high valuations;

waning margins as supply catches up with demand;

limited pool of skilled workers in Macau;

potential cost overruns;

limited non gambling revenues;

Not sure if the bulls or bears are correct on the gaming stocks but I do know there are some very savvy folks long the stocks:

MGM - more than 50% of shares owned by Kirkorian and about 8% owned by Marsico funds.

LVS- more than half owned by founder Sheldon Adelson and another 8% owned by Marsico funds.

WYNN- Steve Wynn with more than 20%, Marsico funds with over 13%, Baron funds with about 6% and David Winter's WGRNX fund with about 1,400,000 shares.