Vegas Stock Play: Long Boyd, Short Perini

6/27 - "Today, I'm adding Boyd Gaming to the mock portfolio as a stock to own...Boyd currently owns attractive properties catering to the Las Vegas locals market, along with riverboat and land casinos in Illinois, Indiana, Mississippi and Louisiana. Boyd also jointly owns the popular high-end Borgata Casino in Atlantic City with MGM Mirage."

"Owning Boyd shares is a good bet today for two reasons. One is that the stock is trading at a trough earnings multiple that compares to that of the 2001 recession, when casino industry profits were hurt by the terrorist attacks of September 11.

The second reason to own the stock is that there is a good chance the economy will improve in 2010, just prior to the opening of Echelon Place...Using conservative estimates on future earnings and the returns from the Echelon development, I feel the stock is worth $18, which implies a...