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1-Star Stocks Poised to Plunge: Caesars?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (Nasdaq: CZR  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Caesars' business and see what CAPS investors are saying about the stock right now.

Caesars facts

Headquarters (Founded) Las Vegas (1937)
Market Cap $1.8 billion
Industry Casinos and gaming
Trailing-12-Month Revenue $8.8 billion
Management Chairman/CEO Gary Loveman
CFO Jonathan Halkyard
Return on Equity (Average, Past 3 Years) (66.4%)
Cash/Debt $1.2 billion / $20.0 billion
Competitors Las Vegas Sands
MGM Resorts International
Wynn Resorts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 45 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star MystixX, kindly warned our community about betting on Caesars:

Common people have less cash to travel to and gamble. Even if they had the money why would they go to a casino when they can just gamble in the biggest casino of them all directly from home-the stock market. The house will always win either way.

Also, if you really want to bet on casinos, then at least choose [Wynn] as most of their revenues come from abroad and they have an excellent balance sheet. [Caesars] is heavily levered and heavily US-based.

What do you think about Caesars, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 10, 2012, at 4:29 PM, cp757 wrote:

    Every one has been saying this stock is going down. Motley Fool has done a good job getting out the word but when a stock goes up 80% in one day people think this is going to 100. You cant pick a stock based on a one day performance. You need to look at a three year chart weather its Gold or a stock. That's the question. What has done better GOLD ?Apple (AAPL) ? Priceline ( PCLN) ? or Microsoft (MSFT) ? What stock did the best . Well I would say the question is how do you want to compare ,but if you put them on a three year chart or a two year chart that would be a good start. We all have our favorites and we would pick different stocks based on what we knew .Most people would be surprised to see all these stocks on the same chart , compared to Las Vegas Sands (LVS).They would have a hard time believing that LVS beat all of these stocks hands down. Looking at CZR on a one day chart does not tell me what it will do .The financial's tell me that and its going down. Just some interesting facts no one talks about.JMHO

  • Report this Comment On February 10, 2012, at 5:14 PM, cp757 wrote:

    I think that Caesars Entertainment (CZR) is the worst stock anyone could buy but thats just the way I see it.Gary Loveman should sell assets and he wants to add debt at a time they lose money every month. (LVS) and (WYNN) both have good reputations and are fantastic company's that list Goodwill on there balance sheet's at 0,000 .Caesars Entertainment lists Goodwill on there balance sheet at 3,420,900,000 with 22.5 billion in debt.This is the worst investment anyone could make JMHO

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Related Tickers

5/25/2012 3:59 PM
CZR $12.50 Down -0.22 -1.73%
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