MGM Gets a Sell Rating

It seems that stock advisors change their recommendations about as often as they brush their teeth. From a “buy” recommendation one day to a “sell” recommendation not even 24 hours later.

MGM stock prices have been rallying in the last couple of days, this is largely due to announcements that the company may get funding support from outside sources or may sell of a few of their assets in order to continue on with the City Center project.

Unfortunately most advisors are currently saying that the rally of the stocks is quite premature and there is not concrete indication that the company is anywhere close to being out of the debt that they are currently in.

The MGM Company as a whole has approximately a 10 billion debt that will be due early in 2011. If business does not pick up and surpass projections it will be quite difficult for the company to stabilize and get back onto their feet like they have in the past.

Company reps were contacted for them to comment on the situation that they were in but there have been no responses from reps at this time.

The company and its shareholders are likely optimistic for some funds to be invested into their projects but the unfortunate truth of the economy remains the same and no one really knows for sure when businesses will be back to normal operating standards or when the economy is due to bounce back.

Some financial analysts are hopeful that things can be back to the way we were used to as early as the beginning of 2010.

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