So-called sin stocks are on the way up. As pandemic restrictions loosen and the world opens back up, people are ready to have fun and will spend money to do so. Whether its gaming and gambling, enjoying an adult beverage, or take in a show on the strip, folks are opening up their wallets to let in a little joy.
This is great news for investors looking to cash in on all the fun. Whether its small firms like Rogue Baron (OTCMKTS: SHNJF) that produce premium spirits and cultivate relaxing atmosphere at its De Rhum Spot rum bar, or larger brands, these five stocks may be of use on the watchlist.
Rogue Baron plc (OTCMKTS:SHNJF) is a premium liquor brand developer that is angling to become the next multi-million dollar buyout success story. Its award–winning Shinju Japanese Whiskey may be the best opportunity to attract one of the majors like Diageo plc or Constellation Brands. SHNJF is still rather unknown stateside. Take advantage of arbitrage opportunities by starting your research today on SHNJF
MGM Resorts International (NYSE:MGM): While it is true that the casino and sports betting space has taken a beating in recent times in the stock market, the MGM Resorts International (NYSE:MGM) stock has managed to be remarkably resilient. In fact, the stock has performed better than those of its direct competitors like Wynn Resorts and Las Vegas Sands as well.
Earlier this month the company pointed out that it holds a strong market share in the United States, which currently stands in the 20% to 25% range. In the 2021 financial year, the company expects to bring in revenues to the tune of $850 million net. It may be a stock to watch out for as the casino market recovers.
Las Vegas Sands Corp. (NYSE:LVS): Recently S&P Global Ratings has downgraded Las Vegas Sands Corp. to junk, citing a slower recovery in the Macau gaming market after omicron cases brought a fresh round of business shutdowns.
S&P now rates the company BB+, one step below investment grade, according to a report Wednesday. The gaming company is still rated high-grade by Moody’s Investors Service and Fitch Ratings, which means one of those graders would also need to cut Las Vegas Sands’ ratings for its debt to fall out of investment-grade bond indexes that are widely tracked by large mutual funds and exchange-traded funds.
Penn National Gaming (NASDAQ:PENN): The other gaming stock that has had a trouble time in recent times is that of Penn National Gaming (NASDAQ:PENN). Like the rest of the industry, Penn had also experienced a considerable shrinkage in its business in the fourth quarter.
The possibility of the National Football League being disrupted by the Omicron variant had led to the panic for investors with regards to gaming stocks. The company’s sports betting app Barstool maintains market share of 8.9% in Pennsylvania and 9.5% in Michigan. Could the Penn National Gaming stock make a comeback now that the Omicron variant is no longer a threat?
Molson Coors Beverage Company (NYSE:TAP): The signing of a major deal can often bring companies on to the attention of investors and it now remains to be seen if that happens with the Molson Coors Beverage Company (NYSE:TAP).
Back on January 25 the company announced that its exclusive agreement with the beverage behemoth The Coca-Cola Company had been expanded. As per the provisions of the agreement, the two companies are going to work on the development and commercialisation of a full flavour alcohol beverages brand.