For the past week or so we’ve taken a deep look at Michael Burry’s latest portfolio additions. Many are tracking the famed investor’s moves as the manager at Scion Asset Management and wondering if they should follow suit and add these companies to their own portfolio.
We’ve already helped you determine what you should do with JD, BKI, COHR, WWW, and BABA – the companies that make up the bulk of his portfolio at this time. But today, we’re going to take a look at MGM.
Burry recently picked up 100,000 shares of MGM Resorts International – and the American global hospitality and entertainment company now makes up 7% of the weight of his portfolio at Scion. While 2023 started strong for the company, they’ve certainly taken a step backward more recently. In the past month, the stock is down 8% – and this figure has grown to 11% in just the past week.
While Burry added this stock to his portfolio, many management groups are offloading it. Just yesterday news broke that UBS Asset Management Americas Inc sold 120,000 shares of this stock. Meanwhile, Provident Investment Management Inc sold over 3,000 shares. In looking at the stock this Wednesday morning, it’s headed further in the wrong direction – down another 5%.
You may be scratching your head wondering what Burry saw in this stock at the time, and if he still holds his stance that this is a good buy as the US heads into a recession. If you’re wondering whether you should fade or follow Burry on this move, keep reading below – we’ll take a look at the stock through the VectorVest stock analyzing software.
Despite the Poor Trend for MGM in the Last Month, it Still Has Fair Upside Potential, Safety, and Timing
The VectorVest system is your key to unlocking effortless, accurate stock analysis. You can win more trades with less work by leveraging the software. It’s all possible through the intuitive stock rating system - you’re given all the insights you need to make informed, confident decisions in three simple ratings: relative value (RV), relative safety (RS), and relative timing (RT).
These ratings each sit on their own scale of 0.00-2.00, with 1.00 being the average. By simply picking stocks above the average, you set yourself up for success. But VectorVest makes things even easier for traders by providing a clear buy, sell, or hold recommendation based on these ratings. To learn what your next move with MGM should be, keep reading:
- Fair Upside Potential: The RV rating assesses a company’s long-term price appreciation potential in comparison to AAA corporate bond rates and risk. And right now, the RV rating of 0.99 is just below the average - but is fair nonetheless. It is worth noting, though, that the stock is overvalued - with a current value of just $24.01.
- Fair Safety: In terms of risk, MGM is fairly safe - as confirmed by the RS rating of 0.87. This is calculated based on the company’s financial consistency and predictability, debt-to-equity ratio, and business longevity.
- Fair Timing: Despite the negative price trend we’ve witnessed form over the past month, the timing for MGM is still fair - with an RT rating of 1.06, just above the average. This rating is calculated based on the direction, dynamics, and magnitude of a stock’s price movement. It’s taken day over day, week over week, quarter over quarter, and year over year.
These three ratings contribute to an overall VST rating of 0.98 - which is just below the average, but still considered to be fair. This begs the question…is it time to buy or sell MGM? Or should you hold off a bit longer before doing anything to see what lies in the days or weeks ahead? Don’t play the guessing game or let emotion influence your decision-making. Get a clear answer on your next move with a free stock analysis at VectorVest today!
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VectorVest advocates buying safe, undervalued stocks, rising in price. Right now, MGM has fair upside potential, safety, and timing - but you don’t have to question what your next move should be. A clear answer is waiting for you at VectorVest.
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