Today we are watching…
1. Crown Resorts Limited (#crown)
The casino industry appears to be one of the first to tackle social distancing. There are serious risks of contracting coronavirus in crowds. The likes of Crown Resorts and Wynn have turned each slot machine into a private booth, and every guest to a casino has a thermal temperature test done at the door. It’s not perfect, though. Guests have to briefly pull down their face masks to make their identities clear to security cameras (no one thought of that, did they?), and bars still remain closed. States want casinos back up and running for tax revenue, and so have given them to all clear. Governors should be aware, though, that however they may feel about being short on cash is the same way other business owners feel who are can’t to reopen on a whim!
2. American Airlines (#amerair)
It was a parabolic week for shares in American Airlines last week as the masses piled in for a 77% ride to the upside. The stock was so beaten up leading into last week that it had started to trade like an option. This means that even though the math says the stock is a zero, it’s still trading, has revolving lines of credit, and could likely avoid officially declaring bankruptcy for some time. The stock cannot go below zero, and there’s a small chance that flight schedules pick up. The stock at $1 has enormous upside and very little downside. There’s no knowing what will happen this week. The traders in American Airlines, Hertz, Luckin Coffee, and more car crash stocks are extremely aggressive. It could be sports betters turned stock betters. We’ll get confirmation in the days to come!
