The worth of an ongoing firm and the valuation of its equities often appear to be at irrational odds with each other. A company with the most stellar prospects can have its securities prices pumped to the heavens in a speculative orgy only to see years-long stock market declines while the physical cash register keeps ringing. MGM, unfortunately, does not have such stellar prospects. Casino/hotels have long appeared to be recession-proof. However, our present commodities-driven inflationary recession has proven too much for even these once-impervious firms to handle. Aside from five good years, MGM stock usually topped-out in the high teens. The stock is presently in a confirmed down trend and has recently plunged through an important support area. A point and figure chart count indicates a likely bottoming area at 16.67. When this issue finally does bottom, there will likely be the formation of an appreciable basing area before any sustainable upmove can be effected.
