No. 2 for a second straight year is Shaun Kelley of Bank of America Merrill Lynch. “Shaun is a bulldog, unafraid to rip apart balance sheets or management teams,” lauds one advocate. Kelley continues to bet on Las Vegas–based casino operators that are developing new sites in Macau, especially Wynn Resorts, on its strong balance sheet and ahead-of-schedule projects there, and Las Vegas Sands Corp., for its low debt level and valuable real estate holdings. He has maintained buy ratings on these names since dubbing them bargains in April 2010. In the 12 months through August 2013, the stocks advanced 50.2 percent, from 93.90 to $141.04, and 34.9 percent, from 41.78 to $56.35, respectively. During the same period the sector rose 19.3 percent. Both remain top picks among the 25 names Kelley monitors.— Ben Mattlin |
The 2013 All-America Research Team: Gaming & Lodging, No. 2: Shaun Kelley